- Bloomberg released a report claiming that Bitfinex manipulated Bitcoin price in 2017
- Tether official responds to the research paper of Bloomberg
- Tether claims it has never carried out an activity to manipulate the digital currency market
Tether News Today – Tether recently issued an official response to a research paper claiming that a single market whale in Bitfinex manipulated the price of Bitcoin (BTC) back in 2017. On November 4, Bloomberg published a paper that claimed that pure market manipulation triggered the massive upsurge in the price of Bitcoin in 2017.
Bloomberg Shared a Paper that Bitfinex Manipulated Bitcoin Price in 2017
A professor at the University of Texas – John Griffin – and an assistant professor at the Ohio State University – Amin Shams – carried out the research. Griffin and Shams claimed that the buying pressure behind Bitcoin (BTC) on Bitfinex surged as soon as its price dropped to a certain level. A snippet of the research states:
“Our results suggest instead of thousands of investors moving the price of Bitcoin, it is just one large one. Years from now, people will be surprised to learn that investors handed over billions to people they did not know and who faced little oversight.”
Stuart Hoegner – the general counsel at Bitfinex – denied the claims. However, Bitfinex and Tether had not made any official statement until now.
Tether (USDT) Price Today – USDT / USD
Tether Responds to the Research Paper of Bloomberg
Today, Tether officially replied to the statement, saying that the peer-reviewed paper was a ‘water-down’ and ‘embarrassing walk-back’ of the previous article. According to the company, the study had some methodological effects. The firm also pointed out the bias point of view of the researchers who believe that a single entity could manipulate the price of Bitcoin (BTC). In a statement, the firm said:
“The purported conclusions reached by the authors are built on a house of cards that suffers from the absence of a complete dataset. As an example of one of many deficiencies, the authors openly admit they do not have accurate data on the crucial timing of transactions or the flow of capital across different exchanges.”
Tether pointed out that Shams and Griffin did not have the necessary information to validate a series of events that could result in the manipulation of the market before making their claims. The firm also said that the authors do not have a clear understanding of the digital currency industry nor the factors that increase demand for USDT.
The firm also ensured that it and its affiliates have never carried out any activity with the aim of manipulating the digital currency market. It concluded by saying that all USDT tokens are fully backed by reserves.