Open questions for CoinDesk about relations with Bitfinex and Tether
Before publishing my previous article, I’ve contacted Bitfinex trying to start negotiations, explained that threatening community with litigations is an extremely bad decision and proposed better solution, but they ignored me so this time there will be series of open letters and every Bitfinex employee can read them.
The first open letter will be addressed to CoinDesk to find out if there is any COI (conflict of interest).
UPDATE: In the end of 2018, CoinDesk has seriously improved coverage of Bitfinex and Tether issues.
Disclaimer: I wanted to focus on other projects, but recently there were multiple flash crashes on Bitfinex again and more people got rekt. Additionally they just enabled margin trading for BTG so even more people will be rekt. Thus I have to continue… otherwise how can I look in the mirror?
CoinDesk
People trust you (I used to trust you, too).
People visit your website everyday knowing that you will inform them about all major news in crypto space. They don’t have to read all subreddits, scroll down the whole twitter feed or news aggregator, because they trust you.
After November 29 media exploded with articles about Bitfinex, but where were you?
1. Flash crashes
If users lost millions on ex-largest crypto exchange due to flash crashes when prices fell down 98% in a few seconds presumably because of technical issues, people trust that you will inform them so they won’t lose all their money due to similar flash crashes a few weeks later on December 22.
Other media: BusinessInsider, Bitcoin.com, Newsbtc, FinanceMagnates, TheMarketMogul
CoinDesk: nothing about recent Bitfinex flash crashes (Nov 29 and Dec 22).
May be flash crashes on ex-largest exchange are not that important? Then why did you publish 3 articles about GDAX and Kraken flash crashes this summer? You even have an article about bitcoin price drop on November 29, but yet there is no info about Bitfinex flash crashes.
In 2015 you were honest enough to inform about Bitfinex’s small 29% flash crash, what has changed since then?
Update: is it because in January 2016, CoinDesk was acquired by DCG (Barry Silbert) which might be connected to Bitfinex (see links at the end)?
2. DDoS, withdrawal issues, closed registration
If ex-largest exchange experience serious server outages and huge withdrawal problems with weeks of delays, instated a minimum withdrawal sum ($250) and finally suspended all new accounts creation, people trust that you will inform them, so they can save money from being stuck in withdrawal/deposit limb and thus avoid sleepless nights.
Other media: Cointelegraph, TrustNodes, Bitcoin.com, ETHNews, HackRead, LatestHackingNews, SiliconAngle, Vittogol, WeLiveSecurity
CoinDesk: nothing about Bitfinex DDoS attacks, massive withdrawal delays or closed registration.
May be exchange outages and other problems are not important? Then why did you publish 3 articles a week ago about Coinbase’s failures during BCH trading launch and allegations of insider trading?
3. Tether, class action lawsuit, warrant canary
If ex-largest exchange is involved in a big dollar-pegged token scandal that can potentially crash the whole cryptocurrency market, users organize class action lawsuit and company’s employee remove warrant canaries, people trust that you will inform them, because even if it’s just a FUD and conspiracy, it still can seriously impact the company and all prices, so people can lose money.
Other media: NYTimes, Bloomberg, Bitfinexed, Bitcoin.com, Bitcoin.com, TrustNodes, ETHNews, DavidGerard, DavidGerard, Biznews, Jerrybanfield, Reddit (4,500 upvotes), BitcoinExchangeGuide, BeingLibertarian, aft, SeekingAlpha, SeekingAlpha, JamesCrypto, Squawker, CryptoInvestor, DataDash, MichaelTaggart, UnTether, UnTether
CoinDesk: no dedicated articles about Tether conspiracy, class action lawsuit or warrant canary.
May be your audience is not interested in Bitfinex and Tether at all? Then why there are articles that Bitfinex hired new PR company to fight with critics and Tether is planning to launch a new platform after $30 million hack?
You were the first one to inform that Bitfinex hired the law firm to threaten critics with legal actions. After that media exploded with even more criticism, but you didn’t join the community. Why?
- Are you supporting threatening bloggers and journalists with litigations?
- Why didn’t you save your followers from losing their funds during recent flash crashes (Dec 22) by writing about previous flash crashes (Nov 29)?
- Why didn’t you save your followers from weeks of stress by writing about serious withdrawal issues and server outages?
- You still can save your loyal followers from losing their money if you warn them about all risks associated with Bitfinex and Tether. Will you?
I don’t know your relations with iFinex and I hope that I’m wrong here, because you are a very respected publisher that has been contributing to community for many years, but this whole picture is too suspicious. If I missed some articles, please point them out and I will be happy to say sorry.
Mistakes are our greatest teachers.
Even after three years people are still constantly reminding Roger Ver about Mt.Gox endorsement. He learned from that mistake so this time his website covers all Bitfinex/Tether issues. And according to this article, he knows way more than he can publicly talk about.
I believe in free speech and you know better what your followers want to be informed about, but please be sure that people aren’t stupid, they understand what you do and community will always remember what choices you made.
Are you an unofficial Bitfinex blog or a trusted independent news publisher?
I’m not expecting any reply, but the choice is up to you.
If you are a CoinDesk’s follower and you want to read more articles about Bitfinex and Tether problems that seriously impact all the community, then you can do the following:
- Ask CoinDesk on their twitter to cover this topic from both sides.
- Give this article a few claps (you can give many) and share with friends.
- Join Telegram group @bitfinexflashcrashes
- Follow UnTether, Bitfinex’ed, SamAiken, MatGroennebaek, CryptoPunks
- Retweet this tweet.
Update: people gave me many interesting links in favor of COI.
- Barry Silbert uses CoinDesk to manipulate the price of ETC in his favor.
- Barry Silbert (CoinDesk) is connected to Coinapult and thus to Tether.
- Possible connection between Bitfinex and CoinDesk via Friedman LLC.
- Possible connection between Barry Silbert and Bitfinex via ShapeShift.
Read next:
UPDATE: In 2018–2019 CoinDesk improved its coverage of Tether/Bitfinex issues and published lots of articles:
- Tether Confirms Its Relationship With Auditor Has ‘Dissolved’
- Report: CFTC Sends Subpoenas to Bitfinex, Tether
- Bitfinex’s Biggest Critic Is Back on Twitter
- Bitfinex’ed Strikes Back: Lawyer Warns Bitfinex Against ‘Threats’ Toward Blogger
- Tether Says Its USDT Stablecoin May Not Be Backed By Fiat Alone
- Bitfinex Covered $850 Million Loss Using Tether Funds, NY Prosecutors Allege
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Disclaimer: I am not a licensed financial advisor, and this article is not a financial advice. The information presented here is for educational purpose only, it represents my personal opinion, and is not purported to be fact. Cryptocurrencies are very volatile and can move quickly in any direction. I am not responsible for any trading loss incurred after reading this article. Seek a duly licensed professional for investment advice.
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