Tether (USDt) Strikes on an Unpublished Report on Manipulating Crypto Market
However, this won’t be the first time such allegations have been made against the stablecoin.
Recently, researcher TokenAnalsyt reported on Twitter that on days that new USDT tokens are issued, BTC price increases 70% of the time.
Following the issuance of Tethers on the Ethereum blockchain, the price of BTC moves up 70% of the time while on Omni, it moves 50% of the time, the researcher found.
“I think the discrepancies are appearing recently primarily because Tether on ERC-20 is just much easier than Tether on Omni to use as a means of transferring value quickly,” Sid Shekhar, co-founder of TokenAnalyst told Bloomberg.
“Ethereum is a speedier chain than Bitcoin. As Tether is primarily used as a way to realize gains and get in and out of volatile crypto-asset positions in times of market movement, the speed of transferring into/out of it is critical.”
Tether has been at the center of the controversy since it first entered the market. In April, New York’s attorney general accused the company behind Tether, Bitfinex for being engaged in a cover-up for hiding losses.
Now, Tether has taken to clarify one such “unpublished and non-peer reviewed paper,” for false reporting based on
“flawed assumptions, incomplete and cherry-picked data, and faulty methodology.”
“We fully expect mercenary lawyers to use this deeply flawed paper to solicit plaintiffs for an opportunistic lawsuit, which may have been the true motive of the paper all along,”
Further providing the explanation, Tether said,
“Tether and its affiliates have never used Tether tokens or issuances to manipulate the cryptocurrency market or token pricing. All Tether tokens are fully backed by reserves and are issued pursuant to market demand, and not for the purpose of controlling the pricing of crypto assets.”