Bitcoin Price was Manipulated by Tether, Researchers Claim

Share
Bitcoin Price was Manipulated by Tether, Researchers Claim

Chainalysis, a research firm which last week produced its own overview of Bitcoin money supply trends, told The New York Times that the Tether theory "seems credible". Twitter accounts and websites such as Tether Printer which tracks the movement of new tokens issued by Tether's central organization show that millions of dollars' worth of USDT were printed through the 2017 and early 2018 market seasons - correlated with the rise of Bitcoin and other cryptocurrencies.

The product of two researchers at the University of Texas, the paper - titled Is Bitcoin Really Un-Tethered? - claims to have identified potential evidence of direct price manipulation since November 2017. The prices climbed faster on exchanges the dealt in Tether than on those that didn't.

Their findings suggest that Bitfinex, an exchange which created and sold Tether, used their currency to snap up bitcoin and drive demand for it, bumping up prices. Price manipulation and collusion may be to blame. Bitfinex stopped issuing Tether earlier this year, though the currency, the value of which is pegged to the U.S. dollar, is still trading in large volumes.

The findings add to the growing concerns that Tether was used to artificially inflate Bitcoin for the benefit of a small group of big cryptocurrency holders, putting the rest of the market at risk.

Or, in layman's terms: to counteract price declines, it looks like somebody at Bitfinex is using Tether to buy bitcoin.

Bloomberg's Tweet about the research paper | Source Bloomberg Twitter page
Bloomberg’s Tweet about the research paper | Source Bloomberg Twitter page

Both firms were subpoenaed in December by the Commodity Futures Trading Commission, which was seeking proof that Tether is backed by a reserve of USA dollars, as it claims. Bitcoin's price reached a record high of $20,000 in December, but its value has since dramatically fallen to $6,300. The Commodity Futures Trading Commission and the U.S. Department of Justice have been investigating whether bitcoin and other cryptocurrency prices are being manipulated, Bloomberg reported last month.

To prevent future price manipulation, the researchers say that "external capital market surveillance and monitoring" may be necessary to keep the market free from tampering.

The results came following transaction analysis of Tether creator and issuer cryptocurrency exchange Bitfinex.

"(Neither) Bitfinex nor Tether is, or has ever, engaged in any sort of market or price manipulation", Bitfinex and Tether Chief Executive Officer JL van der Velde said in a statement.

Share

Advertisement

Related Posts

Jada Pinkett Smith & Daughter Willow Get Candid About Orgasms in New Video
And for Jada , this message was for her, too, because she once felt the same despair that the late Bourdain and Spade died from. Jada asked what her daughter's feelings were about that incident and Willow said she had simply "overstepped a boundary".

Blood donations needed in summer months
The American Red Cross along with the University of Louisville Hospital launched its "Missing Types" campaign on June 11. Lily Dotson and her family know how serious blood shortages can be for patients.

City watches, waits as raccoon gets stuck after scaling Minnesota building
For now, the 23rd-floor ledge ― almost the top of the building ― has become the raccoon's resting spot. The internet was gripped by a daring raccoon that climbed a 23-storey skyscraper in Minnesota , USA.

Theresa May averts Brexit revolt but pro-EU rebels claim victory
Currently, the government is offering lawmakers a "take it or leave it" vote on the final deal. Labour MPs had been whipped to abstain on the motion to disagree with the Lords EEA amendment.

Nasa Opportunity Mars Rover falls silent as deadly dust storm hits
NASA ceased Opportunity's science operations on June 4 as engineers prepared to secure the craft against the storm, Callas said. The storm is covering an area of 14 million square miles, or a quarter of the Red Planet, NASA said today in a mission update .

Watch Painfully Shy 13-Year-Old Singer Slay On ‘America’s Got Talent’
The show first aired on NBC on Tuesday, May 29 and in the run up, Courtney could be seen on the advertising trailer. She even made no-nonsense judge Simon Cowell , who is her favorite, smile from ear-to-ear.

Teen Mom's Farrah Abraham has been arrested at the Beverly Hills Hotel
Just before that she was enraged when one of the officers had taken her wallet as she insisted that she had not struck or injured anyone at the hotel.

WH Adviser Apologizes For 'Special Place In Hell' For Trudeau Remark
Canada is the U.S.'s largest trading partner, and the US economy would struggle to make up for Canada's absence, Heyman noted. So far, numerous tariffs under discussion have been threatened but not yet implemented.

Arron Banks tells MPs: I have no business interests in Russian Federation
They gave him a phone number for Mr Trump's team, after the Russian admitted Moscow was not prepared for a Republican victory. I structure everything legally. "If you don't like the tax law pertaining to this country, get out there and change that".

Saudi-led forces begin Yemen assault
The UAE, a pillar of the anti-Houthi coalition, says retaking Al Hudaydah is necessary to force the rebels to make concessions. Some 70 percent of Yemen's food enters the country via the port, as well as the bulk of humanitarian aid and fuel supplies.

© 2015 ExpressNewsline. All Rights reserved.