Kraken scorns at Bloomberg’s article siding with Tether (USDT)
Kraken, a US-based cryptocurrency exchange that also provides Bitcoin pricing to the Bloomberg Terminal, has issued a disdainful remark to a recent article published by Bloomberg. In a post on its official blog, Kraken mentioned that Bloomberg has failed to “comprehend basic market concepts such as arbitrage, order books and currency pegs.”
Bloomberg published the article named “Crypto coin Tether defies logic on Kraken’s market, raising red flags,” on June 29 and its authors asserted that the price of Tether might influence Kraken. They also consider it to own “oddly specific order sizes” and the fact that “huge trades move prices about the same as small ones.”
Its authors claim that the price of Tether might manipulate Kraken, citing “oddly specific order sizes” and the fact that “huge trades move prices about the same as small ones.”
Although Bloomberg is of the opinion that the regular trades on Kraken will make a massive influence on the price of USDT, it remains moderately stable. Arbitrage trading, USDT’s small trade volume on its market, Tether’s ostensible backing 1:1 by U.S. dollars are the major factors for which the token’s price is almost unaffected, which experts are considering as “red flag” in market manipulation. Kraken further stated an array of factors that have not been taken into account in Bloomberg’s report.
Apart from Kraken, the article was frowned upon by others like Mike McDonald, a professional poker player, who said, “As assuredly the most uninformed piece I have ever read on crypto I think it is a valuable lesson to us to see just how low the standard can be to get published by fairly reputable sources. Small picture a waste of time but big picture a good lesson.”
However, a Bloomberg spokesperson said the company won’t alter any statement made in the reporting. “We stand by our reporting,” he said.
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