Bitfinex CTO says $1 billion fund raise complete, is it good for the crypto market?

According to Paolo Ardoino, the chief technology officer of Bitfinex, the crypto exchange has completed fundraising of $1 billion in tether.

The executive attributed the fast-paced fundraising of the exchange to the confidence of investors in the firm's operations and the willingness of investors to defend Bitfinex for the good of the crypto industry.

Immediately after the statement of Ardoino was released, the bitcoin price spiked from around $7,000 to $7,100, followed by a substantial decline in the Bitfinex premium.

On May 9, Larry Cermak reported that the premium of Bitfinex dropped drastically in a 24-hour span, indicating that traders see less risk in the crypto market.

Bitfinex premium decreased drastically in the last 24 hours signaling that traders think there is way less risk now.

In early May, after the office of the New York Attorney General filed a lawsuit against iFinex, the parent company of Bitfinex and Tether alleging Bitfinex of mismanaging $900 million of Tether's cash reserves, the number of traders selling Tether on Bitfinex for bitcoin spiked.

As buy volumes began to rise rapidly, the price of bitcoin on Bitfinex increased, due to an intense sell-off of Tether.

Possibly due to the progress in the fundraising, the Bitfinex premium started to decline in the past several days, suggesting that traders have become more comfortable with the overall state of the crypto market.

The newly obtained $1 billion would allow Bitfinex to recover the $900 million it "Loaned" from Tether and slowly buy back LEO tokens it distributed to investors using the exchange's profits.

The fear, uncertainty, and doubt around Bitfinex and Tether is likely to subside in the near-term as the fundraising alleviates some of the pressure placed on Bitfinex.