Tether Stablcoins of worth more than $84 million has been transferred recently to OKEx, the malta-based cryptocurrency exchange. There are rumors in the crypto community USDT has been used up to rise up the value of Bitcoin.
Today, the transactions censored startup ‘Whale Alert’ observed that two giant transactions have been done on the cryptocurrency exchange OKEx from two different unknown TRON wallets. One transaction is of worth more than $14 Million and other of worth more than $70 Million.
— Whale Alert (@whale_alert) December 4, 2019
Tether Engagement in Price Manipulation
Similar cases have been observed in the past where USDT transactions caused a significant effect on the BTC price. When October was going to end it is reported that worth of million dollar USDT minted by the Tether treasury network that lead to a selling condition in the Bitcoin markets and the price dumped to $7,400.
Rumors regarding exchange Bitfinex and Tether were always circulating that both has a part in the manipulation of digital gold price. The controversy emerged on the stance that each USDT stablecoin is pegged by one real USD dollar. Due to a serious claim against companies, both are engaged in the lawsuits and legal prosecution cases to defend themselves.
TokenAnalyst came with a report that adopted a strong claim that issuance of USDT coins can lead to Bitcoin rallies. According to the report, almost 70% (two-third) chances for price surge is dependent on issuance of USDT fiat pegged cryptocurrency.
However, both Tether and Bitfinex defend themselves on these allegations and the lawsuits imposed and made a clear reply they have no role at all in the price manipulation.
People who also dismissed the Claim
Over the scene, there are others who rejected these allegations against the firms and believed there was no such thing like manipulation. The director at VanEck, Gabor Gurbacs, dismissed the allegation that Tether has no role at all in the bitcoin’s price manipulation and said ‘stop the witch-hunt’.
I am tired of hoodwink academics, hype-media and uninformed lawyers discrediting the hard work & structural innovation that @Tether_to and @bitfinex built. They built services for #bitcoin & #crypto companies that others failed to provide. Stop the witch-hunt; protect innovation!
— Gabor Gurbacs (@gaborgurbacs) October 7, 2019
On the whole, it is clearly showing that the latest rise in the price is tied to these big transactions on the exchange despite the negation of allegations by these companies.