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Bitcoin’s Atmospheric Rise Might Have Been Tied To Tether

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University researchers have noticed an interesting trendwhen it came to atmospheric jump in the price of bitcoin last year: They found that about half of bitcoin price increases last year happened after another cryptocurrency, Tether, flowed from one crypto exchange — Bitfinex — to other exchanges.

This is significant as Tether, which is said to be pegged to the U.S. dollar and created by Bitfinex’s owners, could be used to buy other digital currencies, such as bitcoin. Even so, Bitfinex’s Chief Executive J.L. van der Velde said in a statement, “Tether issuances cannot be used to prop up the price of Bitcoin or any other coin/token on Bitfinex,” The New York Times reported.

That statement comes as a study by University of Texas Finance Professor John Griffin – along with graduate student Amin Shams – is raising questions as to whether bitcoin’s remarkable rise in 2017 was not, in fact, caused by genuine demand from investors. The authors found that Tether was used to purchase bitcoin at pivotal points when the price of the cryptocurrency was falling, according to CNBC.

“It was creating price support for bitcoin, and over the period that we examined, had huge price effects,” Griffin told CNBC. “Our research would indicate that there are sophisticated people harnessing investor interest for their benefit.”

More specifically, Griffin and Shams, honed in on 87 periods when Tether flowed from Bitfinex to other exchanges between March 2017 and March 2018, a report by Entrepreneur noted. And they found that “these 87 events account for less than 1 percent of our time series (over the period from the beginning of March 2017 to the end of March 2018), yet are associated with 50 percent of bitcoin’s compounded return, and 64 percent of the returns on six other large cryptocurrencies (Dash, Ethereum Classic, Ethereum, Litecoin, Monero and Zcash).”

Still, The New York Times reported that the paper’s authors don’t have documents or emails that show Bitfinex knew about the potential price manipulation — and, if that was in fact the case, who might have behind those moves. Griffin and Shams also found that the pattern extends to price increases of Zcash and Ether — both digital currencies that one can purchase with Tether. Notably, these patterns came to a halt after Bitfinex stopped issuing new Tether tokens.

Claims of bitcoin price manipulation are not new: Griffin’s paper comes a few months after researchers Neil Gandal, JT Hamrick, Tyler Moore, and Tali Oberman published a paper on bitcoin price manipulation in 2013, which describes the extent to which the bitcoin ecosystem is controlled by bad actors. According to TechCrunch, the paper, entitled “Price Manipulation in the Bitcoin Ecosystem,” appears in an issue of the Journal of Monetary Economics. The paper claims “suspicious trading activity likely caused the unprecedented spike in the USD-BTC exchange rate in late 2013, when the rate jumped from around $150 to more than $1,000 in two months.”

On Tuesday (June 12), bitcoin hit its lowest price level since February, briefly dipping below the $6,500 mark, Bloomberg reported. On Wednesday, (June 13) at 4:40pm, the price of bitcoin was $6,260.34, according to CoinDesk. The popular cryptocurrency hit a high of $19,511 in December, following a whopping 1,400 percent rise in 2017

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Claims That Former TRON CTO Was Sacked For Bribery & Theft Surface

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Earlier this month, the Chief Techincal Officer of TRON, Lucien Chen announced his departure from the project. He had been with TRON since 2017 and laid out a three-point explanation as to why TRON just isn’t TRON anymore.

Following the announcement by Chen, the TRON PR sprung into action and according to the representatives from the project, Chen was actually sacked from his position months ago because:

“Suspicion of misappropriation of funds, bribery, competitive infringement, and theft of trade secrets and intellectual property.”

The CEO and founder of TRON, Justin Sun lent validation to this claim by retweeting it and a Reddit thread came up which relayed this information to the community.

Giving his reasons for leaving, Chen said:

“The whole project has developed into a monetary tool without any “decentralize the web” spirit… The technology platform of TRON was built by me. I certainly know that the real Internet applications cannot function in TRON network at all currently. The TRON ecosystem is still far from commercial applications that users can really apply to.”

There are now claims that the former CTO was bribing people, misappropriately using funds, theft and so on. A post on Reddit claims:

“Chen, Zhu, and Xie were dismissed in January, 2019 for violation of corporate policies and the law. Relevant documents and materials have been handed over to the judiciary.”

News Source:Crypto Daily

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Living on Bitcoin Just Got Even Easier, AT&T Accept Crypto Payments With Bitpay

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Earlier today, US telecom giant AT&T proudly announced that it had become the first major American mobile carrier to accept crypto assets for the payment of bills. Customers will be able to settle their accounts using Bitcoin thanks to a deal with BitPay.

Although such developments are great for those earning in Bitcoin, for most people interested in the number one digital currency, the appeal will likely be limited. They therefore do not quite represent the holy grail’s of crypto adoption many portray them to be.

AT&T to Accept Bitcoin Payments Through BitPay

It’s getting easier than ever to live your life exclusively using digital currency. More and more online merchants are opening up to crypto assets in one way or another.

Many with a vested interest in digital currency were excited recently by the news that several large companies would be accepting Bitcoin payments – albeit in a round about way. Bitcoin users can now kit out their wardrobes at Nordstrom, shop for gaming supplies at GameStop, and even pay directly for their groceries at Whole Foods using their favourite digital currency.

This latter point got people particularly excited given that internet retail behemoth Amazon owns WholeFoods. Speculation is rife that Amazon itself could be next to accept Bitcoin via this convoluted method of using a payment processor to pay with a peer-to-peer currency.

You see, part of the recent wave of increased acceptance has been made possible by a deal between crypto exchange Gemini and a payments start-up called Flexa. Users actually pay using an application called Spedn. The merchants themselves don’t receive Bitcoin but they for very little investment they can look supportive of uber-trendy things like cryptocurrency.

The latest company to join the pseudo acceptance bandwagon is US mobile giant AT&T. It announcedvia a blog post earlier today that it would be using crypto payments processing company BitPay to receive payments from its customers online.

In the AT&T press release, Kevin McDorman, the vice president of the company’s business operations, stated of the move:

“We’re always looking for ways to improve and expand our services… We have customers who use cryptocurrency, and we are happy we can offer them a way to pay their bills with the method they prefer.”

Sure, It’s Great for Crypto USERS, Not so Much for Speculators

Just like the other recent announcements of so-called merchant acceptance, this is not really the bullish news that many have made it out to be. Since AT&T will be using BitPay to process payments, they will simply receive dollars as they always would have done. To get those dollars, the Bitcoin is immediately sold creating additional downside pressure on the price of Bitcoin. For those purely speculating, it should be realised that by using such services you are increasing the likelihood of dropping the price of Bitcoin. It will be truly exciting when a major retailers takes payment directly in Bitcoin themselves and goes on to finance the business itself using the crypto asset.

Of course, these stories of increased acceptance are great for those who get paid in Bitcoin and don’t want to have to deal with an exchange just to go about their daily routines. Having more options than ever to spend crypto directly at is certainly advantageous for those trying to live without fiat.

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Bitcoin [BTC] Going Above $7,950 will Start Another Breakout – Analyst

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Bitcoin has been in a slight pullback for a few days now and those who have been watching the charts during this time may be confused as to the direction Bitcoin, and indeed the whole market is going next. A cryptocurrency trader known as DonAlt on Twitter has given some light on the market. He said the lead currency will see some light if it manages to rise to $7,950 from the current $7,842 price.

Bitcoin market chart from TradingView

When will this happen?

Bitcoin grew really fast especially in May, rising way above $8,000 and the crypto community expected a move towards $10,000. However, the market started pulling back in what seemed to be a crash, but analysts said was normal. At the time, the cryptocurrency was said to be growing too fast and needed to correct again before rising at a slower pace.

This seems to agree with DonAlt’s position as the cryptocurrency has eventually corrected but its growth has become significantly slower than before. Another analyst Josh Rager says the asset will be consolidating this week and great volatility should be expected on Friday, May 31st. This may eventually lead to a climb to DonAlt’s critical $7,950 price and the long-awaited recovery above $8,000 again.

 

A long-awaited rise

The initial price rise evidently raised the expectations of the crypto community and many Bitcoin holders cannot wait for the price to go up again. Not only that, altcoins were expected to rise with Bitcoin’s pullback but the current one has held down even the alts. The rise of Bitcoin is currently probably the only hope for the market and the entire space is looking forward to it.

-News Source

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