The issuer of the popular stablecoin USDT has recently published a response to the recently surfaced paper which alleges that a single whale manipulated the market in order to cause a 2017 bull run in the Bitcoin (BTC) price. Tether responds to the paper and refutes the claims that the 2017 bull run was caused by a single whale.
The company which is known to stand behind the dollar-backed stablecoin came out with an official response published on its website on November 7. The announcement was also echoed by the cryptocurrency exchange and sister company Bitfinex.
In the Tether news, we can see how Tether responds to the paper – and how it also denies the findings of the coming paper. The company even accused the authors including John M. Griffin and Amin Sharms of unethical motivations. It said:
“To obtain publication, Griffin and Shams have released a weakened yet equally flawed version of their prior article. The revised paper is a watered-down and embarrassing walk-back of its predecessor.”
Even though the paper about the 2017 bull run and how it was caused by a single whale has yet to be published, the key findings surfaced via Bloomberg on November 4 and showed that it will appear in the peer-reviewed Journal of Finance.
According to the findings by Griffin and Shams, an unknown party was using Tether’s stablecoin USDT and the sister exchange Bitfinex allegedly manipulated the market into the bull run at the end of 2017 – seeing Bitcoin reach an all-time high of over $20,000 before suffering a crash which led to the onset of the crypto winter.
At the time, reports from Wall Street Journal suggested that the paper strongly implies that the single large whale in question was Bitfinex itself. “If it’s not Bitfinex,” Griffin told the journal, “it’s somebody they do business with very frequently.”
Now that Tether responds to the paper too, it is more than clear that big players don’t want false accusations about any previous bull runs. However, Tether and Bitfinex are not that good in the eyes of the law too – there was a class-action lawsuit against them filed by a New York law firm and accusing the companies of using USDT to manipulate the markets.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]