• Sun, 17 Nov 2019, 07:14 AM
  • All times are UTC
  • Edition:
Copy link
Increase text size
Decrease text size
Link copied

Tether minting 30M USDT amidst Bitcoin’s price decrease sparks market manipulation discussion again

Tether has just minted 30M USDT after the price of Bitcoin dropped down below the $7,800 support levels prompting discussions yet again that the cryptocurrency’s value is being manipulated.

Photo via Flickr/Marco Verch

Thu, 24 Oct 2019, 07:53 am UTC

Tether is arguably one of the most scrutinized cryptocurrencies out there due to its history of questionable practices. And now, it has been drawing attention to itself once more following Bitcoin’s plummeting from $8,000 to $7,400.

So a bit of background before proceeding. Tether has been accused time and again of manipulating the price of Bitcoin as the activity of its market capitalization is closely tied with Bitcoin’s value. This has been observed by crypto analysts closely and the data has matched almost perfectly.

Indeed, this trend has been consistent in 2019 alone with the price of Bitcoin almost mirroring Tether’s market capitalization since January, BeInCrypto reported.

Market manipulation narrative surfaces after Tether’s recent activity

Now, with the Tether Treasury minting 30 million USDT, analysts are waiting if the trend continues. Reports are coming in that the newly minted USDTs have been moved to Bitfinex. Usually, the effect of this in the Bitcoin ecosystem will be felt a month after Tether’s maneuver.

The minting process has been done on the Tron blockchain, FXStreet reported. This follows the minting of $15 million worth of Tether about a month ago, which was then transferred to Huobi exchange.

With Bitcoin’s price dropping from its $7,800 support levels, it would seem that Tether is eager to push the cryptocurrency’s price back up to $8,000. But as mentioned, we’ll have to wait for around a month to know how this story unfolds.

Despite Tether’s controversial nature, it’s actually the cryptocurrency that has the highest daily and monthly trading volume. This is quite interesting given that it’s market capitalization is 30 times smaller compared to Bitcoin, Bloomberg reported.

Tether and Bitfinex’s relationship

Tether also doesn’t have the main strength of Bitcoin. Where Bitcoin is a decentralized cryptocurrency – a factor that made it popular in the crypto-verse – Tether is controlled by a Hong Kong-based private firm that is also overseeing the operations of Bitfinex.

This heightens the apprehension surrounding this particular stablecoin given that the reputation of Bitfinex itself has been questioned as well. A bombshell of a headline by the Wall Street Journal back in April put Bitfinex in the spotlight after the New York Attorney General’s office accused the company of covering up $850 million in losses through Tether reserves.

Image credit: https://www.flickr.com/photos/[email protected]/30781761408

Image license: https://creativecommons.org/licenses/by/2.0/

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
  • Bitcoin (BTC) $8,542.63 (+0.18%)
  • Ethereum (ETH) $182.65 (+0.38%)
  • XRP (XRP) $0.264200 (+0.16%)
  • Bitcoin Cash (BCH) $266.43 (-0.11%)
  • Litecoin (LTC) $58.55 (+0.95%)
  • Bitcoin (BTC) $8,542.63 (+0.18%)
Nov 14, 2019 (Thursday)
Amun AG launches Tezos ETP on Swiss SIX Exchange; makes available 7 crypto ETPs on Boerse Stuttgart
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
Samsung SDS integrates QEDIT’s private asset transfer solution with Nexledger blockchain
Crypto Technicals: BTG/USD slips lower to test 4H 200 SMA, break below to see more downside
ASX-listed firm DigitalX launched new bitcoin fund
Telegram denies all SEC allegations concerning its gram token and sale
Crypto Technicals: XMR/USD pauses shy of 110-EMA (67.251), break above to fuel more gains
AFME calls for a common approach for regulation of crypto-assets in Europe
Crypto Technicals: XRP/USD edges higher from fresh 3-week lows at 0.2565, bias strongly bearish
Chinese bitcoin mining giant Canaan seeks to raise $100M in US IPO
Crypto Technicals: LTC/USD breaks below 21-EMA, eyes 50-DMA at 57.28
Crypto data provider Messari raises $4M from Uncork Capital, Coinbase Ventures and others
Crypto wallet startup Bitski secures $1.8M from Winklevoss Capital, Coinbase and others
Crypto Technicals: BTC/USD confined to narrow range trade, 5-DMA caps upside at 8814
Nov 13, 2019 (Wednesday)
CME sets January 13 as target date for bitcoin options launch
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
HSBC, SGX, Temasek explore DLT for end-to-end digitalization of fixed income securities
Crypto Technicals: LTC/USD trade rangebound, holds support at 21-EMA (60.12)
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.