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 published.
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 left behind.
Until then, Tether presses on.
By: BGN Editorial Staff