Key Points:
WhiteBIT exchange has been making headlines for offering annualized interest rates as high as 24.8% on Tether (USDT) deposits for a year on its lending platform. This is five times the average USD money market rate, which raises a red flag.
Arkham Intelligence indicates that WhiteBIT has over $1.59 billion in digital assets, with its own ICO, the WhiteBIT Coin (WBT), accounting for $1.58 billion of that figure. However, it seems implausible that WhiteBIT’s customers hold 99% of their assets in WBT, a claim that the exchange makes.
The exchange boasts over 150 crypto trading pairs and supports two exotic fiat currencies, the Ukrainian hryvnia and Kazakhstani tenge. Moreover, WhiteBIT has some curious ties to Justin Sun, the founder of Tron and BitTorrent.
Funds flow frequently between WhiteBIT and Sun’s Huobi exchange, which may explain the high-interest rates on offer. Sun has a long history of advertising stratospheric returns on dubious stablecoins, including 150% to 392% on his USDD stablecoin, 2,366% on USDJ, 30% on USDC, and 23% on TUSD. Sun controls vast quantities of, and decision-making powers over, most of those stablecoins.
According to Wu Blockchain, when an exchange offers a high earning rate, there may be a shortage of funds. In addition, Huobi’s deposit address ranks second among the addresses with frequent funds exchanges with WhiteBIT, and the fund’s exchanges between the two have exceeded 1.39 billion US dollars.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Major crypto firms, including Ripple, Kraken, and Circle, are competing for spots on President-elect Donald…
Analysts highlight a breakout alert as Shiba Inu (SHIB), and Dogecoin show signs of recovery…
SEC Chair Gary Gensler will step down on January 20, 2025, coinciding with President-elect Donald…
The MicroStrategy convertible notes offering, initially set at $1.75 billion, was increased to $2.6 billion…
Discover why Qubetics, Cosmos, and Chainlink are the best cryptos to buy in November 2024.…
Best Cryptos to Buy in December 2024: Qubetics ($TICS) presale explodes, Ethereum (ETH) eyes a…
This website uses cookies.