1) bitfinex situation is bad and USDT is tethered (lol) to that exchange for the most part so people are selling to get out with USDT since they can not do it with USD
Call me a dummy, but I do not understand this point.
Does Bitfinex offer Tether?
I have never seen that option on my Bitfinex account.
If Bitfinex does not offer Tether, then how could people use Tether to move their funds out of Bitfinex?
What am I missing?
Bitfinex does not offer Tether. However, Tether and Bitfinex are owned by the same parent company. It's all moot, because Tether is effectively disconnected from the banking system until further notice. My hunch is the banks realized that Tether was basically running as an unregulated bank, like Liberty Reserve 2.0. Guilt by association, so the banks disconnect from Bfx as well (that part is speculation). The only way to get funds off Bitfinex is to buy BTC with fiat, which is why the price is so high. Similar situation with Polo since Tether is fucked right now. Interesting note, the legal statement at tether.to makes it very clear that Tether is under no
obligation to convert tokens to USD. Bitfinex has been leading this rally for quite some time, so what happens now?