It is a widely known fact that Bitfinex has a very close connection with Tether. Both companies even have the same CEO, Ludovicus van der Velde.

Bitfinex was one of the first companies to trade Tether, starting in January 2015 and while the firms are separate, they are surely close. However, it looks like Tether and its USDT tokens are losing space in the Bitfinex market.

The Element Group has recently produced statistics to show that the biggest USDT holders in the market are not Bifinex anymore, which is only ranking in sixth on their list. The information, which was tweeted by Ran Neuner, a CNBC commentator, on October 19, shows how the market seems to be making UDT move away from Bitfinex.

Biggest holders of Tether today are treasury,Binance and Huobi. Bitfinex has a very small amount. This means that;
1.Bitfinex has lost a lot of customers.
2.Bitfinex customers have sold Tether for crypto.
3.@cz_binance is certainly in top of the situation.
Source: @TheElementGrp pic.twitter.com/2p12TaJp0t

— Ran NeuNer (@cryptomanran) October 19, 2018

According to the tweet, the Tether Treasury is, unsurprinsgly, the greatest Tether holder, but he is followed by Binance, the largest cryptocurrency exchange by trading volume in the world. Binance is getting closer to hold almost as much USDT tokens as the Tether Treasury, which means that the token is very popular at the exchange created by Changpeng “CZ” Zhao.

Following Binance, the next group of holders of USDT are “unknown” with about 60% of the tokens hold by Binance. Huobi follows next, having almost half of the quantity of tokens that Binance has. It is followed by Poloniex, which is slightly ahead of Bittrex.

Whether is Bitfinex? Considerably lower with half the amount of USDT that Bittrex has and shortly followed by Kraken. Quarantined, HitBTC and Sygnia.io follow in the list.

It is important to notice that the third place, denominated as “unknown bagholders”, is probably made up of a lot of different people who hold Tether USD on their wallets.

While it may seen strange at first, it makes sense that this is happening when you consider that Bitfinex actually sends Tether back to its company when it has too much. This means that, unlike the other companies, when Tether is actually stored for long in Bitfinex, it is sent back.

This is why, not despite how Tether and Bitfinex are close but exactly because of this, they do not hold so much. Other companies like Binance cannot simply send their Tether away with the easeness that the company has to do it, so it may explain why, when you compare the numbers, it looks like Bitfinex is losing its market.

Tether was, for a long time, the only stablecoin in the crypto market that actually worked fairly well. However, as Gemini Dollar, Circle’s USD Coin and other tokens like TrueUSD have entered the market, it looked like Tether was closing to lose its edge in the market.

In fact, as the price of the Gemini Dollar (GUSD) rose recently, Tether’s price went downhill and it was sold by 85 cents only after the trouble started. At the time, Bitfinex has sent a lot of USDT back to the Tether Foundation, claiming that it not have insolvency issues but that it was something normal when the supply of Tether was too high on the exchange.

Neuner, however, believes that both Tether and Bitfinex have lost a lot of clients and that the statistics are a proof of this.

In any case, however, the main problem for Tether are the fully regulated stablecoins, as we have reported recently. As Tether has a history of not being completely transparent, companies like Circle and Gemini can oust the giant with time because people seem to trust them more and trust is one of the most valuable resources of the crypto market.

Will Tether survive? Even if it does not dominate the market next year, there is a good chance that it will, however, it will need to make an effort if it does not want to lose all its clients to GUSD and other popular tokens.

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