Last Year’s Bitcoin Prices Manipulated, Experts Claim

Pair of electronic hand and bitcoin symbol.Vector illustration.

Remember that amazing crypto price surge that happened last December? Of course you do. Well, a group of researchers are claiming these prices were artificially inflated, and some of their colleagues are saying they actually might be onto something.


Join in the fun and play on the world’s First Hybrid on-line Casino with BTC and Fiat currency payments. Check on-line for latest promotions.


John Griffin, a finance professor at the University of Texas, and Amin Shams, a graduate student, published a report entitled “Is Bitcoin Really Un-Tethered?”, which claims that Bitcoin’s December prices (and alt-coins’ prices, consequently) were manipulated by someone, or a group of people, through the use of the Tether cryptocurrency, and via the Bitfinex exchange – a cryptocurrency exchange that creates and sells Tether.

Tether, or USDT, is a cryptocurrency whose price always equals to that of the US dollar and is used to mediate when trading between different cryptocurrencies.
This report,  isn’t linked to any ‘hard’ evidence, like emails or related documents, but it does rely on numbers.

It says that half of all the price surges Bitcoin has seen in the last year happened right after Tether flowed into a few accounts on different exchanges. Usually, this transfer would happen while the price was going down.


Don’t forget to join our Telegram channel for Crypto, Business & Technology news delivered to you daily.


Speaking to Bloomberg, the author says Tether was used to both stabilize and manipulate the price of Bitcoin.

Bitfinex is yet to comment on the matter. However, Griffin’s and Shams’ colleagues have voiced their opinions, and they’re saying this report could hold water, if nothing else – because similar methods have been used before to spot price manipulations.
According to the New York Times, the report has gotten support from Philip Gradwell, the chief economist at Chainalysis, a blockchain research company, as well as Sarah Meiklejohn, a professor at the University College London (one of the early pioneers of this type of manipulation spotting).

The US Justice Department is allegedly looking into possible Bitcoin price manipulation, as well.

Also, as reported, the US regulator known as the Commodity Futures Trading Commission (CFTC) has launched an investigation into potential price manipulation at four major cryptocurrency exchanges: Bitstamp, Coinbase, itBit and Kraken. The CFTC has subpoenaed the exchanges to hand over sensitive trading data to help in the investigation.



Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

Source
Author: Sead Fadilpasic
Image Credit