Bitcoin’s Dec 2017 exorbitant surge was a result of Tether and Bitfinex manipulation!
Tether one of the controversial projects in the cryptocurrency sphere once again has come under the speculations of the researchers. Recently, the compnay has issued its official response against the revised paper written by two U.S. academics John M. Griffin and Amin Shams.
Bitfinex the sister company of Tether and a deprecated cryptocurrency currency exchange published the same announcement through its website on Nov 7, 2019.
Tether and Bitfinex both repudiated the statements made by the professors on their respective websites. The announcement stated that there is a lack of clarity in the research and does not “established a valid sequence of events” to support the claims.
The broadcast reads:
“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.”Source: Tether’s counter response to the allegation put by John M. Griffin and Amin Shams
Allegedly, the fresh claims of Griffin and Shams shared with Bloomberg which in turn made the headlines on Nov 4th. However, the revised paper on Tether’s manipulative activity is yet to be published in the upcoming journal of finance.
As per Griffin and Shams’s claim, one lone unnamed whale on Bitfinex is responsible for the 2017’s Bitcoin (BTC) bull run, which Tether in refute claimed it a flawed version of the previous article written by these two professors who are from the universities of Texas and Ohio respectively.
Tether Suffered Accusations
Griffin and Shams previously wrote an article on June 2018, claiming that Tether is a financial supporter Bitfinex and created more tether without pegging U.S. dollar just to prop up the dipping price of Bitcoin and later on used these coins (Tether) to purchase bitcoin which inflated the sudden price rise of Bitcoin (BTC).
Further, it is mentioned that Tether is not backed by $1USD and Bitfinex has used tether funds to cover the loss of $850 million. The finding later on during April 2019 proved by the New York Attorney General Letitia James and filed a suit accusing Bitfinex of using the reserves of Tether to cover up the loss of Panamanian payment processor known as Crypto Capital Corp.
However, the speculative establishment in the official response openly said that the growth of USDT token issuance is not the result of any manipulative action rather it is the product’s “efficiency, acceptance, and widescale utility within the cryptocurrency ecosystem.”