Ethereum Co-founder Joseph Lubin ‘not sure’ about Tether Bitcoin price manipulation
Ethereum co-founder Joseph Lubin recent revealed his view regarding the market manipulation accusations against stablecoin Tether (USDT). The accusations came when the Bitcoin (BTC) price went up to its all-time high of $20,000 and a study conducted by analysts from the University of Texas published the report in June 2017.
As per the released report, the pattern followed by Tether in conducting the transaction was basically, “used to provide price support and manipulate cryptocurrency prices.” The paper mentioned, “purchases with Tether are timed following market downturns and result in sizable increases in Bitcoin prices.”
Speaking about that on Yahoo Finance’s Final Round that took place on August 28, Lubin said that he doubts the manipulation accusations against the stablecoin Tether (USDT). Though many crypto enthusiasts believe that Tether is lying about its backing assets, Lubin presents a different take. He said, “based on our analysis, which involves just talking to a bunch of people in the space, we do believe that [USDT] are backed 1:1 by U.S. dollars in bank accounts.” However, it is “still not 100 percent solid in terms of a story, from my perspective.”
According to him, even if market manipulation exists, he is doubtful whether Tether is directly related to it or not. He said, “…with respect to market manipulations, I’m not sure that market manipulations are related to Tether directly, if they do exist.”
He goes on to explain, “It has been an unregulated market set of exchanges that enable big players to do what they want to do […] Ideally we’ll get a little better regulation of those centralized exchanges at least.”
In other news, newly issued Tether [USDT] tokens have yet again flowed into the crypto market space with a total valuation of $50 million. It was added on on August 11, 2018. Interestingly, in a few days,Bitcoin (BTC) reached its $ 7,000 mark. It is speculated that the Tether treasury intervened by injecting $50 million worth of tokens and on August 27, the Tether treasury wallet created its first transaction may have caused the spike. The effect on the coin performance was almost immediate.
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