A new study by the University of Texas at Austin found that Tether was used to manipulate the bitcoin course and change the direction of the course of the largest cryptocurrency. The study is based on a study of the strange movement of the BTC exchange rate at the end of 2017 and early 2018. If the results prove to be correct, it can not just explain much, but also change how people mostly see cryptocurrency.
Tether is a StableCoin – a cryptocurrency, linked to an asset (in this case, the US dollar). USDT ranks 12th among all the Crypto-currency by market capitalization and 2 by trade volumes.
Mechanism of manipulation
The study shows that at the time of large movements of the BTC exchange rate, Tether infusions into the cryptocurrency in large volumes occurred, thus it was possible to determine the correlation between these two processes. At the time the market began to go down, there were purchases in USDT. This can not be explained by demand, and therefore it is likely that manipulations were made in this way.
The material of John M. Griffin and Amin Shams, the staff of the Department of Finance of the University of Texas at Austin, was published under the link: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3195066
This news, no doubt, is very provocative, and it raises a number of questions for the cryptological community. For example, have these manipulations been performed by the same people every time?
Nothing definite to say until it works. We will follow developments and report information as it arrives.