Bitcoin Global News (BGN)
September 21, 2018 -- ADVFN Crypto NewsWire -- Tether is not a
market manipulation scheme.
That is what some are claiming,
after a study by Dr. Wang Chun Wei of the University of Queensland
was reacted to by Coindesk today.
Wei’s key finding would appear to
shake the foundations of the strong stream of opposition to Tether
which has essentially attempted, without much success, to derail
the project from its inception. Only one piece of research from the
University of Texas at Austin came close to doing so. Even so, it
appears that even with its essentially incriminating evidence based
on hard data, Tether presses on.
Despite Tether’s continued success,
until now, there has been little press that supports the project in
any way beyond statements from the company itself, as well as its
closest allies. With the publicizing of Wei’s study, times might
appear to have changed in this respect.
Even so, what is arguably more
interesting than the study’s findings is the fact that Coindesk,
which is quite possibly the chief news outlet for all things
Crypto, has announced the study months after it was first
Yes, you heard that right. In
Coindesk’s own article, in which they paint the study as if it were
something new, when it was actually published in June, one day
after the previously mentioned research out of Texas.
Why would they choose to do things
this way? This answer is truly as unclear as Coindesk’s internal
thoughts on Tether are. For now, in the interest of maintaining an
unbiased view on this debate, we will stick to what the conclusions
of Wei’s study appear to be.
Overall, Wei found that there was
no significant, quantitatively provable evidence to prove a
connection between the issuance of Tether coins and upswings in
Bitcoin prices. At the same time, he did find that there was
evidence to suggest that Tether issuances were timed to match up
with Bitcoin downturns.
Wei also avoided examining the
possibility of Tether committing fraud in how much cash reserves it
actually has, reportedly saying that was a matter for regulatory
officials and auditors to determine.
In the end, because all of this was
said, we are right back where we started. The study out of Texas
concluded that Tether could reasonably said to be propping up
Bitcoin prices, with the possible help of Bitfinex. Wei’s study
dismissed the quantitative evidence for this, while still noting in
the end that Bitcoin and Ethereum prices seem to go up when more
Tether coins go to market.
Arguably, the only way for any of
this to become more clear is for a more comprehensive study to be
done, which aims to solve all of the holes that these studies have
Until then, Tether presses
By: BGN Editorial Staff