USDT Dollar-backed stablecoin cryptocurrency Tether issues stark response regarding the bitcoin price and crypto market surge to nearly $20,000 back in December 2017.
Tether has responded to a research paper done by two U.S citizens in which the conclusions accuse the firm and Bitfinex of market manipulation. This research done by Amin Shams and John Griffin both of whom work in academia highlights that the 2017 crypto market bull run may have been caused by the only player.
The USDT parent firm has since posted on its website refuting the paper and was seconded by its affiliate, Bitfinex, which also shared similar sentiments. According to the research paper, Bitfinex was majorly involved in the $20,000 BTC all-time high mark as they influenced the market’s decisions. Alternatively, another entity doing business with the firm may have caused the abnormal price surge.
Tether, however, claims that the findings are way below the standards of the initial research paper on the bull-run. This is because the academics admitted that the dataset used was not adequate enough hence assumptions may have dominated a big part of the conclusion. In addition, the firm assured its clients and stakeholders that they have been compliant and never indulged in market manipulation using Tether tokens. The ecosystem in which USDT operates follows the law of demand and supply and the coins are backed with the U.S dollar.
The response concluded by noting that USDT does not owe its popularity to market manipulation but the growth of Tether;
“It is a result of Tether’s efficiency, acceptance and WIDE SCALE utility within the cryptocurrency ecosystem.”
Here is the entire response from Tether team about its alleged market manipulation: