For the record, I didn't know there was any controversy about this. I mean, obviously they're doing that. There's nothing preventing them from doing it. Milton Friedman would argue they'd be shirking their fiduciary duty if they didn't. It's a fuckin' wretched den of scum and villainy. I thought we all understood this. What, exactly, is the controversy?The price data suggests that Tether may not be minted independently of Bitcoin price and may be created when Bitcoin is falling; it also rejects the notion that Tether is not having a great influence on the Bitcoin price.
That's the big question everyone is wondering the answer to. Also: Just how far can this go before USDT takes a dive? I'd love to see the outflows of USDT from Bitfinex to Kraken et al. IMO one scenario is that the SEC encourages Kraken not to trade USDT.If there is questionable activity, the author believes a 30-80% reduction in BTC price could be forecast.
As a fundamentalist, I've tried real hard to find a correlation between crypto information and crypto prices. There is none. If you squint at it the right way you can sometimes see a negative correlation. "If" there is questionable activity? C'mon now. There's lots of questionable activity. It isn't particularly well-masked. The markets are shallow and they splash easily and the guys who can splash know how to time the waves. It's like that stupid BTC whitepaper that came out last week claiming prices on Mt. Gox were manipulated by a bot... a bot Karpeles admitted to six months earlier. It's like fucking of course this shit is happening everybody knows it. But at this point, all these harum-scarum anonymous whitepapers are really aren't more than FUD attempts to buy the dip.