The Twitter user continues to monitor the cryptocurrency trading platform Bitfinex, especially Tether's funding trends. According to the company, the company started the issuance of the issuance plan on April 8, 2019, resulting in a surge in the total liquidity of the USDT market of 417 million.
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As shown in the chart, on April 1st, the market value of Tether remained at around $2 billion, but it continued to rise in the next few days. It has exceeded $2.4 billion on the 13th and is still rising. During this period, the BTC price jumped several rounds and successively broke several major passes and successfully stood at $5,000. It can be seen that while the price of BTC continues to soar, the USDT is constantly increasing, and the market doubts are not unfounded.
According to PeckShield monitoring data, the USDT market has surged since April. Tether Treasury officially issued 314 million USDT (the difference between the outflow and the inflow of the Treasury address), and added an additional ESR20 USDT of 170 million to the Ethereum network. At present, the total liquidity of the USDT market is 2.345 billion pieces, accounting for 76.6% of the total stable currency market, an increase of 4.4% from the beginning of the month.
Does the market manipulate BTC prices? Not the first time
Bitfinex'ed often accuses the company of using USDT to manipulate currency prices. Previously, the market has repeatedly questioned Tether and its "nedora relationship" with Bitfinex. Tether and Bitfinex have repeatedly been suspected of jointly manipulating the market, but these allegations were categorically denied by Tether.
In an interview with Bloomberg, John Griffin, a professor of finance at the University of Texas, said that from the link between BTC price movements and the USDT issue, Tether does have the motivation to manipulate the market.
“Tether seems to be used to stabilize and manipulate bitcoin prices at the same time. If there is fraud or manipulative behavior in the market, it will leave traces on historical data. From the BTC price and historical data released by USDT, it does match the market. The assumption of manipulation."
Although from a legal point of view, many people believe that the cryptocurrency market is still gray, market manipulation is illegal in any case.
At the end of 2017, Tether was summoned by the US Commodity Futures Trading Commission (CFTC) for alleged manipulation of bitcoin prices and lack of transparency, but both Tether and Bitfinex firmly determined that the allegations were unfounded.
The Bitfinex CEO said in the mail that the allegations were wrong (so far, no one can prove that Tether is suspected of illegally manipulating behavior).
“Bitfinex and Tether have not been involved in manipulating the market or currency. The additional USDT cannot be used to raise the price of other currencies on BTC or Bitfinex platforms.”
Last month, Tether made adjustments to its transparency and reserve assets, saying that its reserve asset structure now includes cash equivalents and other assets in addition to the US dollar. After the market questioned Tether's never-audited audit, Tether also subtly changed the wording to reserve assets for "professional verification."
Currently, Tether has not responded to the challenge raised by Twitter user Bitfinex'ed. (Scallion block chain)