Zhao Dong Compares Bitfinex to the Rising Phoenix from the Tether Ashes, Claims Finex Will Survive
Bitfinex was in a very bad position recently as the New York State’s Attorney General accused the exchange of using Tether’s reserves in order to cover up a huge loss of funds which was worth $850 million USD.
After the whole controversy was out in the open, the crypto market entered pure chaos and a significant chunk of its space has been going down in price. The shares of Bitfinex were also affected by this but Zhao Dong, a shareholder of Bitfinex, believes that the future will be good.
According to him, the crypto exchange will survive this controversy. He compared Bitfinex to a Phoenix (because of the Finex in the name, which sounds like the name of the mythological bird) and affirmed that the company will rise again.
He also claimed to be very happy to a be a shareholder in the company and revealed that Giancarlo Devasini, the Chief Financial Officer of the company, has affirmed that all the frozen funds of the exchange would be unfrozen soon.
Several banks from the United States, Poland and Portugal decided to freeze the funds of the company in order to protect their interests regarding the possibility of the company becoming insolvent in the near future due to the allegations that it had such a loss of funds.
This is not the first time in which companies freeze the funds of the company, though. Wells Fargo has already done it in the past and it froze around $140 million USD from the exchange. The bank was sued later in this occasion.
Zhao Dong has also commented on social media that “what doesn’t kill you make you stronger” and made the Phoenix comparison. He is believes firmly that the chaos will not stop the company from surviving and becoming more well-prepared for the future.
Despite the implications for the stablecoin market, some people are not too worried about the future of Tether and Bitfinex. There are even people who see their demise as something that can end up being surprisingly good for the market.
Why? Because of the lack of transparency that the token has. Whatever short impact it has, the people against Bitfinex affirmed that this will help in the boom of digital assets because it will show the need of being more transparent than either Tether or Bitfinex ever was.