Bitcoin's Major Boost Was Likely Manipulated, Research Finds
14 June, 2018, 03:21 | Author: Regina Silva
Writing in a 66-page report titled "Is Bitcoin Really Un-Tethered?", Griffin and Shams argue that tether, a "stablecoin" that is allegedly backed by Dollars at a 1:1 ratio, has been repeatedly used to provide price support for bitcoin during market downturns.
That's according to explosive new research from University of Texas finance processors John Griffin and Amin Shams, best known for identifying suspicious activity in the VIX past year. Evidence of price manipulation was found in all of those, too. Tether is the 11th largest cryptocurrency and is pegged to the U.S. dollar.
Their findings suggest that Bitfinex, an exchange which created and sold Tether, used their currency to snap up bitcoin and drive demand for it, bumping up prices. Since exchanges often face difficulties finding the banking partners and achieving the regulatory compliance necessary to offer fiat-to-crypto trading pairs, many altcoin exchanges use tether as a proxy for physical Dollars. Other digital currencies like Ethereum and Litecoin soared at around the same time by as much as 64 percent.
The researchers noted that the "bitcoin reversal did not exist before Tether was prevalent in the market and disappears during the period when Tether stops being printed".
Bitfinex, a cryptocurrency exchange, distributed Tether and supplied it to other exchanges, mainly Poloniex and Bittrex, the researchers said.
California to vote on whether to split into three states
Fresno, Imperial, Inyo, Kern, Kings, Madera, Mono, Orange, Riverside, San Bernardino, San Diego, and Tulare counties. If the measure is approved by voters, it would have to be ratified by Congress, which analysts say is unlikely.
As CCN reported, Tether has increasingly come under scrutiny as the tether token's market cap has swelled over the past calendar year. "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".
Or, in layman's terms: to counteract price declines, it looks like somebody at Bitfinex is using Tether to buy bitcoin. Bitcoin's price reached a record high of $20,000 in December, but its value has since dramatically fallen to $6,300.
In December, the CFTC sentsubpoenas to Tether and Bitfinex, a popular cryptocurrency exchange that is affiliated with, and shares executives with, Tether.
To prevent future price manipulation, the researchers say that "external capital market surveillance and monitoring" may be necessary to keep the market free from tampering.
In response to the research, Bitfinex's CEO JL van der Velde told PCMag: "Bitfinex nor Tether is, or has ever, engaged in any sort of market or price manipulation".
He has one Uruguay cap and was included in Óscar Tabárez's World Cup squad for the tournament in Russian Federation this summer. He has become a key player at the Stadio Luigi Ferraris and is ranked among the best defensive midfielders in Serie A.
Over the four games, he averaged 34 points, 10 assists and 8.5 rebounds while shooting 52.7 per cent from the field. James wasn't making excuses for Cleveland's postseason pickle because if not for a reversed official's call or J.R.
In Japan, the prospect of cancelled U.S. -South Korean military exercises, framing it as Trump agreeing to a request from Kim. Is this summit a game-changer for Asia and the rest of the world? "(North Korea) and the development of the situation".
It's also being defied at the state level , where the rules are being replaced by executive orders and legislation. The Federal Trade Commission will be able to investigate if internet providers engage in anticompetitive behavior.
Talks are to be led on the US side by Pompeo and, according to the agreement, a "relevant, high-level" North Korean official. North Korea and South Korea have the most riding on a peace deal, but China , which is next door, is probably next in line.
In past years, Taco Bell has held a similar "Steal a Base, Steal a Taco" promotion during the World Series. The Warriors beat the Cleveland Cavaliers in Cleveland to "steal" Game 3 of the NBA Finals on June 6.
As he flew from Canada to Singapore Saturday night, Trump took to Twitter to label Trudeau "dishonest" and "weak ". Still, Canada accounts for less than 3 percent of global trade, according to Agri-Food Economic Systems.
The Fed had said its key rate "is likely to remain, for some time, below levels that are expected to prevail in the longer run". The latest increase, the second this year , will bring the benchmark federal-funds rate to a range between 1.75% and 2%.
One was to say no, one was to leave, the third was to be present, to take a step forward for the Spanish FA and Spanish football'. "We feel obliged to take this decision", Rubiales told a news conference at the team base in Krasnodar .
They have been surveying the trees since 2005 and have developed a theory of how they grow, while also documenting the losses. Scientists are wondering what's behind the mysterious die-off - and are looking at climate change as a likely culprit.
Canada rallies to Trudeau after Trump's insult
While trade is expected to dominate, Trudeau also wants to focus on gender equality and climate change. Reps not to endorse the Communique as we look at Tariffs on automobiles flooding the U.S.
Raccoon scales skyscraper in Minnesota
It's hoped a live trap on the roof of the building with cat food will lure the raccoon to safety. Both men laughed when asked if they had managed to get any work done during raccoon-watch.
The Private Sector Eid Holidays Have Just Been Announced!
It's thought that pious behaviour and good deeds can increase a Muslim's spiritual reward, known as thawab, during this period. The festival falls from the 21st of August to the 25th, and celebrates the end of the annual pilgrimage to Mecca.
Panama’s former president to be extradited home Monday: lawyer
They did not immediately respond to a request for comment, and their court filings were not publicly available at press time. Nauert said Martinelli's extradition followed normal procedures established by the countries' bilateral extradition treaty.