Bitcoin's collapse is raising suspicions about price manipulation

New Report Blames Tether for Bitcoin’s Bull Run

The findings come from University of Texas at Austin professor John Griffin and graduate student Amin Shams, who examined the role of another cryptocurrency called Tether, which is pegged to the U.S. dollar.

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.

Bitcoin soared previous year, peaking at almost $20,000 in December, before the price collapsed. The latest reason? A research paper hot off the press at the University of Texas at Austin.

A study by the Department of Finance at the University of Texas at Austin finds that the Bitcoin price through much of 2017 was directly manipulated through the use of Tether, the largest stablecoin by market cap and adoption. This has been widely rumored within the cryptocurrency community for ages, but the study lends an air of academic credibility to the claims.

New Report Blames Tether for Bitcoin’s Bull Run
Bitcoin's collapse is raising suspicions about price manipulation

Their analysis of the flow of coins on Bitcoin's blockchain found that the three main Tether exchanges for most of 2017 - Bitfinex, Bittrex, and Poloniex - also created substantial cross-exchange Bitcoin flows among themselves. This, they say, may indicate a "month-end need for dollar reserves related to Tether", implying that Tether issues un-backed tokens to help buttress the bitcoin price and then sells enough BTC at the end of the month to fully back the outstanding USDT.

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

The CEO of Bitfinex, a cryptocurrency exchange, also runs Tether, and in December, a United States regulator sent a subpoena to both companies. And, in January, Tether parted with its auditor, Friedman LLP. "These effects are present only after negative returns and periods following the printing of tether". 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". Whenever bitcoin fell, tether was used to buy it to prop up the price of the leading crypto. The prices climbed faster on exchanges the dealt in Tether than on those that didn't. "Tether issuances can not be used to prop up the price of Bitcoin or any other coin/token on Bitfinex".

"Overall, our findings provide substantial support for the view that price manipulation may be behind substantial distortive effects in cryptocurrencies".


Related News:

  • Couple taking selfie on cliff plunge to their deaths

    The captain of the port of Cascais, 30 kilometres west of Lisbon, said he believed the couple fell while trying to take a selfie. The couple's bodies were taken to a medical centre while authorities contacted the Australian and British embassies in Lisbon.
    Prince Harry and Meghan's first major royal tour confirmed

    Prince Harry and Meghan's first major royal tour confirmed

    The work is a fee for the right of man to dwell on the earth. "There are no special classes, there are no special manuals". As a newly-appointed royal with the world watching her every move, you certainly can't blame Meghan for feeling nervous.
    US, Mexico and Canada to host 2026 World Cup

    US, Mexico and Canada to host 2026 World Cup

    The bid group has been working under the premise of three cities in each of Canada and Mexico and 10 in the United States. Despite this, Solkowski is hearing there's still a slight chance Vancouver could get back in the game, so to speak.
  • Farrah Abraham Arrested After Allegedly Attacking Beverly Hills Hotel Employee

    Farrah Abraham Arrested After Allegedly Attacking Beverly Hills Hotel Employee

    The star is also reported to have been roaring "you should know who I am" while getting arrested at the glamorous hotel. Police noted Farrah was "displaying signs of intoxication during their investigation".
    Urges all parties in Yemen to work with United Nations  as fighting flares

    Urges all parties in Yemen to work with United Nations as fighting flares

    He estimates that over a million people live in the greater Hodeidah area which is expected to be targeted in the offensive. The officials spoke on condition of anonymity because they were not authorized to brief the media.
    Macedonia to be called 'Republic of Northern Macedonia'

    Macedonia to be called 'Republic of Northern Macedonia'

    That challenge will still be a mountain to climb, as Greek Prime Minister Tsipras has not yet secured any support in parliament. Zaev said resolving the longstanding issue would open Macedonia's access to North Atlantic Treaty Organisation and the EU.
  • Epic Antarctic ice sheet melt speeding up sea level rise

    Epic Antarctic ice sheet melt speeding up sea level rise

    If all of the glaciers on the southern continent were to melt then sea level would rise by 58 meters (190 feet). If the rate does not increase, that would imply that sea level would rise by an average of 10 inches by 2100.
    United's new midfielder injured in Brazil training

    United's new midfielder injured in Brazil training

    Fred has made eight appearances for Brazil and made head coach Tite's final 23-man squad for the World Cup in Russian Federation . Lasmar said Augusto could play on Sunday depending on how his recovery continues this week.
    Paul raccoon safely trapped on tower roof

    Paul raccoon safely trapped on tower roof

    By Wednesday morning it had made it to the roof of the building, easing fears that it would plummet to its death. A raccoon scrambles along a ledge on the side of the Town Square building in downtown St.
  • 9-year-old girl sent to rehab for 'Fortnite' addiction

    9-year-old girl sent to rehab for 'Fortnite' addiction

    Although the game is free to play, developers have raked in cash from in-game purchases as players try to boost their performance. The girl's father told the reporter that when he first confronted her about her Fortnite addition, Carol was very aggressive.
    Shami fails fitness test, Saini called in as replacement for Afghanistan Test

    Shami fails fitness test, Saini called in as replacement for Afghanistan Test

    The key for me is fitness and over the last few months, I have brought a lot of changes into my fitness regimen. Despite all the odds, the Afghans will look to put up a spirited performance against the top-ranked Test team.
    Garmin Vivoactive 3 Music First Look

    Garmin Vivoactive 3 Music First Look

    Deezer is given as an example of one such service, but apparently support for this is coming soon rather than being available now. Still, if you're into athletic activities, it's hard to compete against this bad boy at $300.


Most liked

Proposal to split California into three states qualifies for November ballot
Congressional approval , however, is no easy ask. " California government has rotted", Draper told The Mercury News last month . Among other obstacles, a recent SurveyUSA poll found that only 17 percent of California voters support the " CAL3 " plan.

Trump says NKorea no longer a nuclear threat
Asked whether he would invite Kim to the White House, Trump said: "Absolutely, I will". He said he planned to continue sharing the view with Washington and Seoul .

Fed lifts rates amid stronger inflation, drops crisis-era guidance
After years in which the economy expanded at roughly a tepid 2 percent annually, growth could top 3 percent this year. All those countries have vowed to retaliate against any US tariffs with their own penalties against USA goods.

Traders see fourth Fed interest rate hike this year
Fed officials project gross domestic product increasing 2.8 percent this year, up from an earlier projection of 2.7 percent. Policy makers kept their hiking path at three hikes for 2019 while trimming the 2020 outlook to one increase.

Jada Pinkett-Smith Says Her Grandmother Taught Her About Masturbation At 9
Jada asked what her daughter's feelings were about that incident and Willow said she had simply "overstepped a boundary". Anne-Marie Tomchak talks artificial intelligence and the robot take-over on #GirlsWithGoals.is your job truly safe? .

FG declares Friday, Monday, public holidays for Eid -El Fitr
The Central Ruet-e-Hilal Committee will meet on Thursday evening in Karachi for Shawal moon sighting. These institutions will resume normal operations on Wednesday, June 20, sources said.

North Korea Summit: Best Donald Trump & Kim Jong-un Memes
However, there was no mention of the previous USA aim of "complete, verifiable and irreversible denuclearization" from Pyongyang. On Wednesday morning, he took to Twitter to claim there was "no longer" a nuclear threat posed by the North Korean regime.

Federal Bureau of Investigation agent who shot club patron while breakdancing charged with assault
The agent was taken to police headquarters and later released to a supervisor with the Federal Bureau of Investigation . Bishop was part of a dance-off at the bar and during a backflip, his concealed weapon fell out of his trousers .

La Barbie sentenced to 49 years in prison
At the time, then-Mexican President Felipe Calderon called Villarreal 'one of the most-wanted criminals in Mexico and overseas '. Duffey wasn't swayed, telling Valdez that his actions were despicable and amounted to a betrayal of his family and his country.

Saudi-led coalition forces begin assault on Yemen aid port
The early stages of Wednesday's offensive followed statements from UAE and Saudi officials that military action was necessary. The United Nations and other aid groups had pulled their worldwide staff from Hodeida ahead of the rumored assault.

NCAA Changes Redshirt Rule
That idea has fallen off the table amid concerns about creating an inequitable system that could face legal challenges. Like other Power Five conferences, the ACC has extra restrictions on athletes who transfer within the conference.

Pokemon Let's Go Pikachu And Eevee Require A Subscription To Play Online
The game can also be integrated with PPokemon Go app and transfer their Pokemon from the app to the Switch game. Will there be motion controls in Pokemon Let's Go Pikachu if I'm playing in handheld mode?

Angelina Jolie Could Lose Physical Custody of Kids to Brad Pitt
Pitt gets custody from June 8 to June 17 for four hours per day while he stays in London, where Jolie now rents a house. Angelina Jolie has allegedly been ordered to allow estranged husband Brad Pitt to spend more time with their children.

Raul Jimenez: Wolves sign Mexico forward on loan from Benfica
Meanwhile, striker Benik Afobe, 25, has moved to Championship side Stoke - just 11 days after joining Wolves . All told, Jimenez scored 39 goals in 102 appearances for America over four seasons before heading to Europe.

Nintendo announces Daemon X Machina at its E3 presentation
It is coming out for the Switch in 2019 from Marvelous, a publisher in Japan. Daemon X Machina will come to the Nintendo Switch in 2019.