Connect with us

Bitcoin

‘Bitcoin’s (BTC) Price Was Pushed Up Using Tether (USDT) Manipulation’, Say Researchers

Published

on

In a newly available research paper by faculty at University of Texas (Austin), the question as to whether Tether (USDT) has influenced the price of Bitcoin (BTC), has been answered. John M. Griffin, a professor at the University, and Amin Shams, a PhD candidate in Finance at the same institution, co-authored the piece and have ample evidence that there is a pattern of Tether being spent during Bitcoin’s pivotal moments of decline.

The research paper postulates that Tethers are usually created by the parent company Tether Ltd. in large chunks of 200 Million. The coins are then transferred to Bitfinex. What then happens is as soon as the price of Bitcoin drops, Tethers at Bitfinex and other exchanges are used to buy Bitcoin in a coordinated way that drives the price up.

John Griffin is noted in the research paper as observing that:

Tether seems to be used both to stabilize and manipulate Bitcoin prices.

Griffin would also add that:

I’ve looked at a lot of markets. If there’s fraud or manipulation in a market it can leave tracks in the data. The tracks in the data here are very consistent with a manipulation hypothesis.

The paper further outlines several patterns uncovered over a year long period. The flow of Tether was only one way in that when the prices of Bitcoin fell, purchases with Tether tended to increase but not the other way round. This further means that when the prices of Bitcoin rose, there was no reversal of Tether. Griffin would postulate in the paper that Tether was being used to protect the price of Bitcoin during downturns.

The research focused on the time period between March 2017 and March 2018. Griffin highlighted on 87 of the largest purchases of Bitcoin using Tether and observed in some cases, Tether had just been minted three days prior of the purchases and used immediately the price of BTC fell significantly. What then would happen, is an increment in the price of BTC.

The team of Graffin and Shams ran 10,000 simulations to verify that their observations were indeed true before releasing the paper. They would also add that:

[Bitcoin purchases with Tether] strongly increase just below multiples of 500. This pattern is only present in periods following printing of Tether and not observed by other exchanges . If it was random behavior you wouldn’t see it cluster around the thresholds. It indicates it’s a conscious strategy to provide price support.

This research paper and the information it holds, has reignited questions of the link between Tether Inc. and Bitfinex. Both companies are said to share a management team including Van Der Velde, the CEO of Bitfinex.

Tether was earlier on in the year embroiled in investigations as to whether it has the actual cash to back the over 2.5 Billion USDT in circulation. Recent reports also indicate that there was a new batch of $250 Million worth USDT minted on May 18th. The questions keep piling up with respect to Tether (USDT).

Advertisement

Bitcoin

Bitcoin: New way to launder income of Mexican cartels

Published

on

Mexico City.- Some of Mexico’s main criminal organizations laundered their profits globally through the use of virtual currencies such as Bitcoin. The above according to the report National Evaluation of Drug Threat 2017, prepared by the Drug Control Administration (DEA).

In this regard, the institution noted that China has become a major center of money laundering, for which large shipments are used from the Asian country, where cryptocurrencies have become very popular currencies.

In previous years, the preferred methods were money transfer systems. Today bitcoin and other virtual currencies allow cartels to transfer illicit profits on an international scale, ‘the report says.
For this reason, the PGR and the DEA decided on Wednesday to form a joint team to combat the financial networks of drug trafficking, a strategy that promises to be more effective than capturing the leaders of criminal gangs.

In previous years, the preferred methods for moving and laundering illicit profits, ie the smuggling of bulk money, was to use money transfer systems, money laundering based on commerce and the formal banking sector. Today, bitcoin and other virtual currencies allow cartels to easily transfer illicit profits on an international scale, ‘the DEA informed.
He added that for 2017 the sale of drugs in the US, represented profits of 64 billion dollars, 21 percent of all illicit money generated in that country at present.

Meanwhile, a second study noted that currently half of the bitcoin transactions are linked to drug trafficking, which means a total of 72 billion dollars. This goes hand in hand with a decrease of 27 percent in cases of confiscation of cash money by drug trafficking.

Continue Reading

Bitcoin

Vault Coin (VLTC) Cryptocurrency Daily Volume at $1 as Price Down to $0.000064

Published

on

The cryptocurrency market took a massive tumble in the week following the SEC’s announcement that it would postpone its ruling on whether to allow the listing of the Cboe VanEck/SolidX ETF backed by Bitcoin (BTC) to September 30. When all was said and done, the total market capitalization dropped to as low as $189 billion, levels not seen since November of last year.

However, since hitting that low on Tuesday, the market experienced a fairly sizeable altcoin bounce that brought back more than $35 billion in total capitalization. The relief rally intensified late in the week as major blockchain projects announced significant exchange listings, technological milestones, and system updates.

As we head into the next week, investors will likely be keeping their eye on the price action of BTC, as it has been denied by the $6,500-$6,600 range multiple times and currently sits at around 51% market dominance. How BTC acts here will likely be indicative to the next major movement.

Here’s the rest of the week in review:

Binance LCX, a joint venture between Binance and LCX, has announced the launch of an upcoming fiat-to-cryptocurrency exchange. Binance is set to provide and maintain the platform, while Binance LCX manages customer support, due diligence, legal requirements, KYC, AML and government communications. Binance LCX plans to build a team of roughly 10-15 individuals to fulfill the venture in their Lichtenstein office.

Tyler and Cameron Winklevoss, the founders of crypto exchange Gemini, aren’t overly fazed by the recent SEC decision. Instead, while they wait for Wall Street and the SEC to get on board with crypto, the company will focus on expanding its product offering focused on retail investors.

Toshi, the Ethereum mobile wallet, has recently been rebranded as Coinbase Wallet. The Coinbase-developed app has been revitalized with a new name as the service merges into a larger effort to invest in products set to define the future of the decentralized web.

Bitmain, a leading ASIC chip maker and crypto mining hardware manufacturer, has more than $570 million in Bitcoin Cash (BCH) holdings, according to a pre-IPO investor deck. According to the documents, Bitmain has 1,021,316 BCH, which it purchased at an average price of $869. While this represented a total holding of around $887 million at the time of the statement, BCH has since fallen in value to $573, which means that Bitmain has suffered a ~$317 million loss in a little over a quarter.

This week’s market recovery was primarily driven by gains in VeChain (VET), Ontology (ONT), and NANO (NANO). The AltDex 100 Index (ALT100), a benchmark index for the industry’s leading cryptocurrencies and tokens, finished flat this week and currently sits at 79.40.

AltDex 100
Other cryptocurrency categories were relatively mixed over the last week. The AltDex Exchange Token Index (ALTEXC), a benchmark index for the industry’s leading exchange tokens, fell over 7% while the AltDex Privacy Coin Index (ALTPRV), which tracks tokens focused on privacy or security, is up around 2%. The new AltDex Masternode Index (ALTMSN), which tracks major masternode cryptocurrencies, dropped over 4%.

Continue Reading

Bitcoin

IOTA, Vechain Lead Tepid Crypto Market Recovery on Sunday

Published

on

Vault Coin (VLTC) traded down -0.94 percent against dollar during the last day interval closing 11:00 on August 19th EST. Vault Coin presently has a marketcap of $1,950 and its 24 hour trading volume is around $1. Within the 7 day interval, Vault Coin is -0.16 percent against the dollar with a movement of 1.17 percent inside the last 60 minutes.

Now let’s take look at how similar cryptocurrencies have performed in the last 24h:

  • Stellar Holdings (HOLD) is currently at $0.00 against the USD, a -7.93 percent change since yesterday. The Bitcoin price of HOLD is currently at 0.00000004 BTC.
  • Eryllium (ERY) is currently at $0.00 against the USD, a -4.08 percent change since yesterday. The Bitcoin price of ERY is currently at 0.00000061 BTC.
  • ChatCoin (CHAT) is currently at $0.01 against the USD, a -1.15 percent changesince yesterday. The Bitcoin price of CHAT is currently at 0.00000215 BTC.
  • Pigeoncoin (PGN) is currently at $0.00 against the USD, a -1.91 percent changesince yesterday. The Bitcoin price of PGN is currently at 0.00000004 BTC.
  • PeepCoin (PCN) is currently at $0.00 against the USD, a -5.22 percent change since yesterday. The Bitcoin price of PCN is currently at 0.000000003 BTC.
  • Atmos (ATMOS) is currently at $0.01 against the USD, a -16.05 percent changesince yesterday. The Bitcoin price of ATMOS is currently at 0.00000133 BTC.

Vault Coin Info

Vault Coin has a max supply of 30,385,540 coins. It started on 13th October, 2016.

From cryptocompare.com: “VaultCoin is a Proof of Work cryptocurrency based on the X11 algorithm. You can pay or send money to anyone, anywhere in the world in the form of this internet currency for a low fee.”

Listed here are a few good links for those who wish to get more information concerning Vault Coin:

  • Website: 
  • Github: https://github.com/teamvltcoin
  • Twitter: Vault coin
  • Reddit: https://www.reddit.com/r/Vaultcoins/
  • Facebook: https://www.facebook.com/vaultcoinVLT/

VLTC: Info for Traders

People can obtain VLTC on exchanges such as CCEX, Novaexchange, TradeSatoshi, LiveCoin,

It’s not always viable to buy cryptos including Vault Coin right away using USD. Investors hoping to acquire VLTC may perhaps need to firstly buy Bitcoin or Ethereum from an market place which has got American dollar trading pairs such as Coinbase or perhaps GDAX. Traders can then use this BTC or Ethereum to invest in Vault Coin using one of the exchanges we detailed previously.

Continue Reading
Advertisement
Advertisement