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On the tether market there is active (as it should be) a $10 billion gorilla that acts as a market maker. The price is 100% manipulated, as it should be. What
by cornholio 8y ago
On the tether market there is active (as it should be) a $10 billion gorilla that acts as a market maker. The price is 100% manipulated, as it should be.
What they seem to prove is that on this particular market, a wash trader is active, that fakes volume. There is little benefit in this for the gorilla, and a lot of benefit for Kraken itself.
- coolspot 8y agoGorilla might be interested in fake volume to simulate bullish signals for rest of the market, in order to raise valuation of coins.
- bitreality 8y agoI think they'd just prefer no one speculating on Tether at all. If Tether had a bunch of people actively trading the USD-Tether pair, it would be much more expensive to keep the price fixed. By keeping the price volatility extremely low, they discourage speculators from trading, since they don't stand to make a profit without price movement.