Bitfinex denies “manipulating the market” or will file a lawsuit against the allegations

On Saturday, Bitfinex, the cryptocurrency exchange, officially announced that some people in the encryption community have “no basis” for their manipulation of the market.

According to the announcement, some people concluded that Bitfinex manipulated the encryption market by issuing Tether through "defective assumptions, incomplete and carefully selected data, and erroneous methods."

Bitfinex insists that its unwarranted allegations "destroy the growth and success of the entire digital token community, and Bitfinex and Tether are key components of the encryption community."

Bitfinex also said it might file a lawsuit against the person who made the comments. If a lawsuit is filed, it will defend itself.

The exchange then further stated its position, saying that each issued Tether token has reserve support, and the cryptocurrency exchange did not manipulate the market by issuing Tether. It said that

“Bitfinex and its affiliates have never used or added Tether tokens to manipulate the price of the cryptocurrency market or tokens. All Tether tokens are fully supported by reserves and are issued and traded on Bitfinex according to market demand, rather than For the purpose of controlling the price of encrypted assets."

Just this Friday, Bloomberg quoted TokenAnalyst's research data that in the days of Tether tokens, the number of days of bitcoin price increases accounted for 70%. This is probably an important factor in the rise in bitcoin prices as it has issued about $2 billion in Tether this year.

Tether can be circulated in many digital ledgers. TokenAnalyst's research found that after the issuance of Tether on the Ethereum blockchain, 70% may cause bitcoin prices to rise, and after the addition of Tether on the Omni blockchain, the probability of bitcoin price increases is only 50%.

TokenAnalyst co-founder Sid Shekhar said in an email that "Traders can judge the market by tracking the issuance and destruction of ERC-20 Tether tokens because they are closely related to the trend of bitcoin prices."