New Research Claims Bitcoin Price was Manipulated using Tether (USDT)
New research from the University of Texas alleges that the price of Bitcoin during its bull run in 2017 has been manipulated using Bitfinex’s Tether money back. A recently released paper by Professor John Griffin and grad student Amin Shams analyzed the visitors of cryptocurrencies about the Bitfinex exchange and discovered a correlation between price slumps in Bitcoin along with other coins and cases once Tether was issued and sold from the proprietors of this exchange. The newspaper alleges that these cases may account for approximately 50 percent of their price increases of Bitcoin and 64 percent of the others trading in the upper ten.
Professor Griffin highlighted the pattern of trades he along with his research partner discovered played a main part in past years unprecedented price increases in the crypto marketplace in a recent meeting with the New York Times. He told the newspaper,
“There were obviously tremendous price increases last year, and this paper indicates that manipulation played a large part in those price increases.”
Tether, as its name implies, is pegged to the value of their US dollar and may be used to purchase additional crypto coins. J.L.. Van der Velde reacted to the accusation from the newspaper using a statement that reads”Tether issuances Can’t be used to prop up the price of Bitcoin or Another coin/token on Bitfinex,”
The analysis conducted by the Texas researchers concentrated in on 87 distinct cases between March 2017 and March 2018 when Tether transferred from Bitfinex to additional exchanges. The study found that”those 87 events accounts for less than one percent of the time show (within the span from the start of March 2017 towards the end of March 2018), nevertheless are correlated with 50 percent of bitcoin’s increased return, and 64 percent of their yields on six other big cryptocurrencies (Dash, Ethereum Classic, Ethereum, Litecoin, Monero and Zcash).”
Researchers Find Market Manipulation
If what the research theory proves to be accurate this wouldn’t be the very first time Griffin has sniffed out fraud in the financial world. He is most notably known for a 2016 newspaper that saw manipulation in a budget called VIX that was tied to regular in financial markets that were later verified by a whistleblower.
This also would not be the first time that manipulation of the price of Bitcoin was alleged. A newspaper that appears back in the price of Bitcoin at 2013 was formerly released by investigators Neil Gandal, JT Hamrick, Tyler Moore, and Tali Oberman. This newspaper entitled”Price Manipulation from the Bitcoin Ecosystem,” appears in a matter of this Journal of Monetary Economics clarifies the degree to which the Bitcoin ecosystem continues to be controlled.