CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • Fund
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$32,431.00
  • ethereum
    ETH$1,245.52
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    Home » Crypto News » Tether Denies Recent Bitcoin Whale Manipulation Study

    Tether Denies Recent Bitcoin Whale Manipulation Study

    Author: Jordan Lyanchev

    Last Updated Dec 15, 2019 @ 14:56

    A recent study published by two US academics claimed that Tether and Bitfinex manipulated Bitcoin’s parabolic rally in 2017. Days after the publication, Tether has issued an official response denying the merits of the report, saying that the paper lacks credibility.

    Tether’s Response

    A few days ago, two university academics updated a paper they have previously published in 2018 regarding a possible price manipulation in the cryptocurrency market. As per their report, the 2017 price surge was severely manipulated by one single whale. They even went further by claiming that Tether (USDT) was used to inflate Bitcoin’s price artificially, and it was carried out on the cryptocurrency exchange – Bitfinex.

    It didn’t take long for Tether to publish an official response. The statement completely denies all accusations coming from the report, naming it “a weakened yet equally flawed version of their prior article.” It continues by refusing the remark that only one entity can cause such a price increase and that they have never used Tether tokens for any market manipulations.

    “The revised paper is a watered-down and embarrassing walk-back of its predecessor that still suffers from the same methodological defects, coupled with the clumsy assertion that one lone whale may be responsible for the rise of Bitcoin in 2017. […]The purported conclusions reached by the authors are built on a house of cards that suffers from the absence of a complete dataset. […] Tether and its affiliates have never used Tether Tokens or issuances to manipulate the cryptocurrency market or token pricing.”

    Tether In Defense Mode

    Tether has a history of having to publish official statements in defense, and the same can be said for the cryptocurrency exchange Bitfinex. The two are owned by the same company, called iFinex.

    There’s an active ongoing legal case filed from the U.S. Justice Department and New York’s Attorney General, alleging that the company covered up an $850 million loss. Shortly after, BitFinex published a post in response, claiming that the NYAG court filings are “written in bad faith and riddled with false assertions.”

    The study from the US academics brought up another important note about Tether’s backing. Tether made a quiet change this year in their terms, adding that “from time to time, [backing] may include other assets […]”. Naturally, the crypto community lashed out, and co-founder William Quigley had to respond by saying that it wouldn’t matter if every Tether is backed by the dollar if everybody agreed to take it and value it at a dollar.

    Enjoy reading? Please share:
    Facebook Twitter LinkedIn Telegram
    SPECIAL OFFER (Sponsored)
    Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

    PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO35 code to get 35% free bonus on any deposit up to 1 BTC.

    You Might Also Like:

    • us_bitcoin_cover
      Grayscale Study: COVID-19 Made Bitcoin Even More Attractive To US Investors
    • BidenTrumpBitcoin
      Trump Or Biden? Max Keiser Explains Why Bitcoin Will Be The Ultimate Winner After the US Elections
    • btc_whale
      Despite Bitcoin's Latest Price Crash, BTC Whale Addresses Are At ATH
    Read more on: Bitcoin Bitcoin Whales Bitfinex Tether (USDT)

    About The Author

    Jordan Lyanchev View more posts by this author

    Jordan got into crypto in 2016 by trading and investing. He began writing about blockchain technology in 2017. He has managed numerous crypto-related projects and is passionate about all things blockchain. Contact Jordan: LinkedIn

  • bitcoin
    BTC$32,431.00
  • ethereum
    ETH$1,245.52
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    ADVERTISEMENT
    binance
    ADVERTISEMENT
    bitmart
    Bitcoin Editorials
    Ethereum 2.0 Staking on Exchange vs. Creating Your Node: What You Need to Know

    Ethereum 2.0 Staking on Exchange vs. Creating Your Node: What You Need to Know

    5 Possible Reasons For Bitcoin’s Price Surge Over $30,000

    5 Possible Reasons For Bitcoin’s Price Surge Over $30,000

    2020 Year In Review: Bitcoin’s Journey From $3800 To Nearly $30K

    2020 Year In Review: Bitcoin’s Journey From $3800 To Nearly $30K

    6 Reasons For The Ongoing Bitcoin Bull-Run Beyond $20K

    6 Reasons For The Ongoing Bitcoin Bull-Run Beyond $20K

    Is Blockchain The Answer To COVID-19 Led Misinformation and Rumor Mongering?

    Is Blockchain The Answer To COVID-19 Led Misinformation and Rumor Mongering?

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    About
    Advertise on CryptoPotato
    About Us | Contact Us

    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Cannabis Stocks News | Market Analysis
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!