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Even a quick look at CoinMarketCap shows you that there's something a little odd about the current rally. Look at the volume column and you'll see that Tether

Even a quick look at CoinMarketCap shows you that there's something a little odd about the current rally. Look at the volume column and you'll see that Tether has more volume than bitcoin and has had for a little while. Tether has recently a) Admitted that they don't have 1:1 backing in USD b) They use customer funds for investment rather than just storing them and c) They're currently under investigation by the New York Attorney General. Against that backdrop they've increased the number of Tethers in circulation by $400 million in the last month... Now it's possible that they've got a load of companies who really believe in them to the point that they're eager to invest in Tether (even when there are other 1:1 backed stablecoins available) A different interpretation could be that Tether have worked out they can effectively just print money as much as they want and are using this to buy bitcoins, driving up the price...

nathanasmith 7y ago
>Even a quick look at CoinMarketCap shows you that there's something a little odd about the current rally. >Look at the volume column The really odd thing is getting your volume numbers from CoinMarketCap in the first place when according to this well argued deck[0], 95% of those numbers are fake. What you're looking at there is completely distorted as unregulated exchanges have a huge vested interest in inflating the numbers to dupe projects into paying higher listing fees and since most of the time, the fake volume doesn't track the waning and waxing of the real volume of legitimate exchanges, not only is that fake volume wrong quantitatively but it's also wrong relatively making it worthless and CMC practically worthless by extension though they do claim to be addressing the issue. [0]https://www.sec.gov/comments/sr-nysearca-2019-01/srnysearca201901-5164833-183434.pdf https://www.sec.gov/comments/sr-nysearca-2019-01/srnysearca2...
- raesene9 7y ago
  It makes the point about relative volume, even if absolute levels are crap :) The volume point was around a stablecoin with issues having a higher relative volume than bitcoin itself.

nathanasmith 7y ago

>Even a quick look at CoinMarketCap shows you that there's something a little odd about the current rally. >Look at the volume column The really odd thing is getting your volume numbers from CoinMarketCap in the first place when according to this well argued deck[0], 95% of those numbers are fake. What you're looking at there is completely distorted as unregulated exchanges have a huge vested interest in inflating the numbers to dupe projects into paying higher listing fees and since most of the time, the fake volume doesn't track the waning and waxing of the real volume of legitimate exchanges, not only is that fake volume wrong quantitatively but it's also wrong relatively making it worthless and CMC practically worthless by extension though they do claim to be addressing the issue. [0]https://www.sec.gov/comments/sr-nysearca-2019-01/srnysearca201901-5164833-183434.pdf https://www.sec.gov/comments/sr-nysearca-2019-01/srnysearca2...

raesene9 7y ago
It makes the point about relative volume, even if absolute levels are crap :) The volume point was around a stablecoin with issues having a higher relative volume than bitcoin itself.