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That makes sense, but is there evidence this is actually happening? I think for this chain of logic to be true, there would have to be cases of people attempti
by marcell 6y ago
That makes sense, but is there evidence this is actually happening?
I think for this chain of logic to be true, there would have to be cases of people attempting to convert Tether into USD, and failing. That did happen with Mt Gox, so it’s certainly possible.
- skohan 6y agoThere is a credible study[0] on the subject. But your condition does not have to hold for this manipulation to work. Assuming Bitfinex made billions of real dollars in this scheme, they could easily cover the liquidity of cashing out anyone who wants to exchange Tether for USD. [0]: https://www.wsj.com/articles/large-bitcoin-player-manipulated-price-sharply-higher-study-says-11572863400 https://www.wsj.com/articles/large-bitcoin-player-manipulate...
- marcell 6y agoInteresting. If the study is indeed correct, and half the previous run-up to ~$20k was due to Tether, then the market has since correct as the price is a little below half that value. Of course there have been a lot of ups/downs since then, with bitcoin hitting as low as $5k recently.
- skohan 6y agoI mean, the fact that the price of this asset has been heavily manipulated in the past and the price has since come down a bit would not be evidence that there is not still manipulation happening, or that the price has reached it's "fair market value"