Monday, 17 December, 2018


Tether Directly Used to Manipulate Bitcoin Price, Finds Study

Tether Directly Used to Manipulate Bitcoin Price, Finds Study Tether Directly Used to Manipulate Bitcoin Price, Finds Study
Conrad Doyle | 14 June, 2018, 04:57

The report says that Tether, one of the most-traded cryptocurrencies, has shown a pattern of being spent on bitcoin at pivotal moments, helping to drive bitcoin to a record price in December, according to a Bloomberg report on the study, which was authored by finance professor John Griffin.

The researchers analyzed 87 of the largest Bitcoin purchases made with Tether from March 2017 to March 2018.

The flow clusters below round prices, induces asymmetric autocorrelations in Bitcoin, and suggests incomplete Tether backing before month-ends.

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

Days after Tether (USDT) gained a higher market cap than Monero and Dash, new research has reignited suspicions that the altcoin "manipulated" Bitcoin prices.

"Across the six other crypto currencies, returns are 64 percent smaller on average when removing the 87 Tether-related [purchases]", the researchers added. Price manipulation and collusion may be to blame.

Again, in plain language: in periods right after the bitcoin price falls and Tether mints a bunch more USDT, that's when it's clear that somebody (who could it be?!) is artificially pushing the bitcoin price back up. Bitfinex stopped issuing Tether earlier this year, though the currency, the value of which is pegged to the USA dollar, is still trading in large volumes.

Bitfinex, a cryptocurrency exchange, distributed Tether and supplied it to other exchanges, mainly Poloniex and Bittrex, the researchers said.

Regulators worldwide are increasing their scrutiny of cryptocurrency markets.

Bitfinex has denied being involved in any price manipulation schemes.

Bitcoin reached its peak price of nearly $20,000 in December but is now trading at around $6,300 according to the Coin Market Cap. These patterns can not be explained by investor demand proxies but are most consistent with the supply-based hypothesis where Tether is used to provide price support and manipulate cryptocurrency prices.

The CEO of Bitfinex, a cryptocurrency exchange, also runs Tether, and in December, a USA regulator sent a subpoena to both companies. "Due to the semi-transparent nature of the blockchain, we are able to use extensive algorithms to lump nodes of investors and match transactions on the Tether Blockchain to those on the Bitcoin Blockchain".

"Bitfinex nor Tether is, or has ever, engaged in any sort of market or price manipulation", Bitfinex CEO JL van der Velde told Bloomberg in an e-mailed statement.

Recommended

loading...
...
  • Jada Pinkett Smith reveals her grandmother taught her about 'self-pleasuring'

    Jada Pinkett Smith reveals her grandmother taught her about 'self-pleasuring'

    Kate Spade, a wildly successful American designer who has over 140 retail stores across America alone was found dead at her NY apartment on Tuesday morning.

    John Boyega tweets about 'Star Wars' fan harassment, Mark Hamill wades in

    Lucas says that his vision for the next three Star Wars films - Episodes VII to IX - "were going to get into a microbiotic world". Star Wars fans will now be thrilled to know that the veil has been partially lifted on Lucas' ideas for the episodes.
    Nebraska couple charged with brutally murdering, dismembering Tinder date

    Nebraska couple charged with brutally murdering, dismembering Tinder date

    Those documents also say, the cellphone Boswell used to access her Tinder account was used near where the body parts were found. The last message Boswell sent through Tinder to Loofe was on the 15th at 6:54 p.m., telling Loofe she was at her home.
  • Nine-Year-Old Fortnite Player Enters Rehab for Gaming Addiction

    Nine-Year-Old Fortnite Player Enters Rehab for Gaming 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 parents also said they discovered charges amounting to $67 a month to Microsoft on the family's credit card statement.
    Why are Africa’s baobab trees dying?

    Why are Africa’s baobab trees dying?

    The African baobab is the biggest and longest-living angiosperm tree. "It's shocking and very sad to see them dying". The common theory, Baum said, is that as the tree slowly grows around these scars, they can become large hollows.

    Trump and Kim Stir Confusion About What They Actually Agreed To

    The report also said Kim underlined the importance of "bold decision on halting irritating and hostile military actions". During his post-summit press conference, Trump admitted that he may be wrong about Kim's willingness to denuclearize.
  • How the Queen has taken Meghan Markle under her wing

    How the Queen has taken Meghan Markle under her wing

    However, it seems the former actress wasn't quite as sure of herself, then admitting hat she was "nervous.", to her new husband. Many members of the royal family have never been aboard the royal train with the queen .
    Here’s why the AT&T-Time Warner merger just got approved

    Here’s why the AT&T-Time Warner merger just got approved

    Shares of AT&T were about flat in after-hours trade following the decision , while Time Warner rose more than 5 percent. AT&T-Time Warner is considered a vertical merger, as AT&T is a content distributor and Time Warner is a content creator.

    Money talks for Federation Internationale de Football Association as Morocco pays price for Infantino’s expansion plan

    The U.S. last hosted World Cup games in 1996, Mexico last hosted in 1986 and Canada has never hosted men's World Cup matches. To cut down on travel, the USA -led bid proposed having teams play all their games in the same regional areas.
  • Tyson Fury outclasses Seferi

    Tyson Fury outclasses Seferi

    Fury was given a backdated two-year doping ban, and he declared his boxing career finished as he piled on the pounds. He hasn't fought since a shock defeat of Wladimir Klitschko in November 2015 saw Fury win the world title.
    Download: Office 2019 For Mac Preview Released, Here’s How To Get It

    Download: Office 2019 For Mac Preview Released, Here’s How To Get It

    Search-Microsoft is planning to revamp the search experience across Office apps providing access to commands, content, and people. The update also includes icons that scale better with screen size and a more prominent Search feature in the Office applications.
    Uber patents AI that can tell if you’re drunk or exhausted

    Uber patents AI that can tell if you’re drunk or exhausted

    It is not known if the info will be used to deter drivers from picking up such passengers in order to sidestep potential trouble. The patent application also indicates that the Uber service may change based on the outcome of the data analysis.

Italy summons French envoy as migration row escalates Italy summons French envoy as migration row escalates But there was also criticism from Spain, despite its gesture of solidarity. "We hope this meeting can take place very soon". After meeting in Berlin, Austrian Chancellor Sebastian Kurz and German Interior Minister Horst Seehofer echoed Salvini.

Ministers win key Brexit bill vote after concession Ministers win key Brexit bill vote after concession Five Labour MPs have resigned from their roles ahead of a Brexit vote on remaining in the European Economic Area. Brexit supporters will be watching closely to see what concessions the government finally offers to the rebels.

Fred expected to complete Man Utd move this week Fred expected to complete Man Utd move this week They will also face group matches against Costa Rica and Serbia , before hopefully progressing to the knockout stages. And the 25-year-old has not been deemed fit enough to start against Austria in Vienna on Sunday afternoon.

Navarro apologizes for 'special place in hell' remark about Canada's prime minister Navarro apologizes for 'special place in hell' remark about Canada's prime minister Ottawa says it is discussing how it could help steel and aluminum workers affected by the recent imposition of US tariffs. Other than he had a news conference that he had cause he assumed I was in an airplane and I wasn't watching".

Former PM Brian Mulroney predicts Trump’s anger at Trudeau will ‘dissipate’ quickly Former PM Brian Mulroney predicts Trump’s anger at Trudeau will ‘dissipate’ quickly While trade is expected to dominate, Trudeau also wants to focus on gender equality and climate change. It came in response to what he claimed were "false statements" by Canadian premier Justin Trudeau .

It's critical to prevent a battle for key port in Yemen It's critical to prevent a battle for key port in Yemen The statement by Secretary of State Mike Pompeo stopped short of warning the Saudi and UAE-led coalition against besieging the key city.

Unique campaign urges people to donate blood Unique campaign urges people to donate blood WHO aims to obtain sufficient blood supplies from the voluntary and unpaid blood donors all over the world by 2020. Since roughly 20% of donors are students from high schools and colleges, the Red Cross is in desperate need.

Farrah Abraham Arrested for Striking Beverly Hills Hotel Staffer Farrah Abraham Arrested for Striking Beverly Hills Hotel Staffer UPDATE at 9:15am PT on 6/13: The Beverly Hills Police Department released the following statement about Abraham's arrest . A source tells us Farrah was heard playing the "I'm a celebrity" card - yelling things like. you should know who I am.

NASA rover falls silent as big dust storm envelops Mars NASA rover falls silent as big  dust storm envelops Mars On Tuesday, NASA's attempt to make contact with the rover failed, suggesting the battery level had finally dipped below 24 volts. Two days later, as the storm intensified and spread, energy levels had dropped to 345 watt hours and the day after, to 133.

Where Is Minneapolis Raccoon Now? The Little Climber Has Been Safely Captured Where Is Minneapolis Raccoon Now? The Little Climber Has Been Safely Captured Nearby Minnesota Public Radio branded the raccoon with the hashtag #MPRraccoon , and it was soon trending on Twitter . The fuzzy critter hopped to the roof of that building before scurrying over to the UBS Building to make its climb.

Here's what Rafa Benitez has previously said about managing Spain Here's what Rafa Benitez has previously said about managing Spain The development came a day after it emerged he would be replacing Zinedine Zidane as Real Madrid manager in time for next season. He began his career at Real Valladolid, where he spent two seasons in the first team before moving to the Spanish capital.

Meghan Markle has just made royal history, again Meghan Markle has just made royal history, again While guests were standing on the balcony waiting for the Queen to arrive, Meghan wanted to know when to curtsy. During the event, Meghan hinted that her future efforts will focus on women's empowerment.

Trump Kim summit: Sitting down side-by-side Trump Kim summit: Sitting down side-by-side Even though no deadline was set for the denuclearization of North Korea, a guarantee of security was extended to Pyongyang. Trump said he had formed a "very special bond" with Kim and that relationship with North Korea would be very different.

Cavaliers' Love: I want to finish my career with LeBron Cavaliers' Love: I want to finish my career with LeBron A man holds up an image of Cleveland Cavaliers' LeBron James as Warriors fans celebrate outside Oracle Arena in Oakland. Durant, for example, was paid US$25-million this season. "Does it matter?" Durant said of being picked over Curry.

Cyberpunk 2077 is a 'first-person RPG,' confirms dev There will be a lot to explore too, with 6 unique districts in the city to explore and find your way around. Classes will NOT be picked in the beginning - class system is fluid based on the choices the player makes.