Buy Bitcoin here
  • Crypto
    • Bitcoin News
    • Ethereum
    • Altcoin
    • Blockchain
    • Blockchain Companies
    • Cryptocurrency Exchanges
    • DeFi
    • Regulation
    • Cointelegraph news
    • Press Release
    • ICO News
      • ICOs Review
      • Upcoming ICOs
      • Scam
  • Education
    • CryptoTicker Starter Kit
    • Blockchain For Dummies
    • Crypto entrepreneurs
    • Free Resources
    • Events
    • Events Review
  • Prices
  • Exchange Comparison
  • Newsletter subscribe

  • News

    • Bitcoin News
    • Altcoin
    • Regulation
    • Blockchain Companies
    • Blockchain
    • Cryptocurrency Exchanges
  • News

    • Ethereum
    • Events Review
    • ICO News
    • Press Release
  • Education

    • CryptoTicker Starter Kit
    • Education
    • Blockchain For Dummies
    • Crypto entrepreneurs
    • Free Resources
    • Events
  • Cryptoticker

    • About us
    • Advertise
    • Media Kit
    • Submit your Press Release
    • Contact
    • Membership Login
  • Social Media

    Facebook Twitter Telegram Youtube
    • Newsletter
  • Crypto
    • Bitcoin News
    • Ethereum
    • Altcoin
    • Blockchain
    • Blockchain Companies
    • Cryptocurrency Exchanges
    • DeFi
    • Regulation
    • Cointelegraph news
    • Press Release
    • ICO News
      • ICOs Review
      • Upcoming ICOs
      • Scam
  • Education
    • CryptoTicker Starter Kit
    • Blockchain For Dummies
    • Crypto entrepreneurs
    • Free Resources
    • Events
    • Events Review
  • Prices
  • Exchange Comparison
Starter Kit Membership Search
English
English Deutsch
Menu
Search


Altcoin

Tether is Not Responsible for Bitcoin Price Manipulation?

Posted On April 23, 2020 Prasanna 0

  • share 
  • share 
  • share 
  • tweet 
  • share 
  • share 

According to a report released by Richard K. Lyons and Professor of Finance Ganesh Viswanath-Natraj, both from the University of California Berkley, contrary to Griffin and Shames claims, the issuance of a stablecoin such as Tethers USDT has no systematic effect on cryptocurrency prices.

The report claims that issuance operation can be described as controlling a decentralized method of exchange rate pegs and serving as a shelter in the digital asset economy. The significant stable coin rewards can demonstrate the latter during the COVID-19 panic of March 2020.

The generation of Tether

First, the study looked at how Tether USDT is generated. The stablecoin is created when an investor transfers dollars to the Tether’s account. At the moment, as many tethers are created as dollars have been transferred. This assures that every Tether can be obtained at any time for one dollar. The USDT is then quickly transferred to the secondary market via the Bitfinex crypto exchange. A portion of Tether’s total USDT has been held as a reserve since 2018. If the USDT price in the secondary market is above parity, this reserve is sold for dollars.

Would you like to make money with Bitcoin without much effort? Come to our premium area and get professional help to trade successfully!

Main areas of application of stablecoin

According to the study, stablecoins are mainly used for two purposes—one as an arbitrage opportunity and the other for traders hedge against falling prices of cryptocurrencies.

In arbitrage, traders take advantage of subtle price differences to make profits. The study found that if Tether’s price rose by as little as 1 cent, USD 300 million would flow into the secondary market. Traders buy for $ 1 in the primary market and sell for $ 1.01 in the secondary market. The price of USDT usually levels off quickly to $1.

Another factor in the influx of new USDT is its use as a vehicle currency. In dangerous times, many investors swap assets with stable value. Data indicate that in volatile phases such as the crash in early 2018, portfolios shifted from Bitcoin to USDT at the expense of Bitcoin. Many other studies have revealed that the value of the stable coins correlates negatively with the risk factor in the crypto area. In the Coronacrash on March 12, a USDT cover was observed. If the markets are in the hype, it is usually the other way round, and USDT is trading below a dollar.

Conclusion of the study

The study found no evidence of a relationship between the issue of stable coins like Tether and the impact on the price of cryptocurrencies. The problem answers more to deviations in the secondary market. Stable coins are created because there is a real, justified demand for them. The bubble 2017 generated so many stable coins because so many were in demand and not to manipulate the market. Stablecoins also serve excellently as a safe haven in the crypto world.

  • share 
  • share 
  • share 
  • tweet 
  • share 
  • share 

It is super easy to buy Ripple. Just take a look at our exchange comparison!

 

 

Follow us on Social Media and subscribe to our free crypto newsletter!

@Telegram
@Instagram
@Twitter 
@TikTok
@Facebook

Diskutiere mit uns!

About Trading @CT Trader
About Crypto in general @CT Inside

This post may contain promotional links that help us fund the site. When you click on the links, we receive a commission - but the prices do not change for you! :)

Disclaimer: The authors of this website may have invested in crypto currencies themselves. They are not financial advisors and only express their opinions. Anyone considering investing in crypto currencies should be well informed about these high-risk assets.

Trading with financial products, especially with CFDs involves a high level of risk and is therefore not suitable for security-conscious investors. CFDs are complex instruments and carry a high risk of losing money quickly through leverage. Be aware that most private Investors lose money, if they decide to trade CFDs. Any type of trading and speculation in financial products that can produce an unusually high return is also associated with increased risk to lose money. Note that past gains are no guarantee of positive results in the future. 

#bitcoinprice#manipulation#Tether



You might also like

Crypto Regulation

Tether Prints 5 Billion USDT In Only 2 Weeks
September 15, 2020
Bitcoin Bitcoin News Crypto TradingView

Bitcoin Price Analysis: Will BTC Price Continue to Rise?
July 21, 2020
Bitcoin Crypto TradingView

Bitcoin Halving in 2 days – BTC touches the $10,000 mark – Bitcoin Price Analysis!
May 9, 2020

More from Altcoin

Pi Network raises Red Flags while claiming to be the New Bitcoin – Full Review
Posted On January 27, 2021 Rudy Fares 0

Every so often, we witness the launch of a new cryptocurrency that comes with its hype soldiers. In 2019, a …

Cryptocurrency Nostalgia: These Five Ancient Coins From ‘17 Are Showing Signs Of Life
Posted On January 26, 2021 Taha Zafar 0

For the cryptocurrency investors, the end of ‘17 and beginning of ’18 has been the best so far. As …

As Ether Reaches New All-Time High, Bitcoin Surges Ahead!
Posted On January 25, 2021 Santiago Burelli 0

On January 25th, 2021 Ethereum officially hit a new all-time high of $1,467.78,  Ethereum propped Bitcoin up as well following an …

In order to support and motivate the CryptoTicker team, especially in times of Corona, to continue to deliver good content, we would like to ask you to donate a small amount. Independent journalism can only survive if we stick together as a society. Thank you


  • Top Broker

    Bybit
    bybit
    Review · Visit
    Plus500
    Plus500
    Review · Visit

    Top Exchanges

    Kraken
    Kraken
    Review
    Coinbase
    Coinbase
    Review · Visit
  • Newsletter subscription




  • News

    • Bitcoin News
    • Altcoin
    • Regulation
    • Blockchain Companies
    • Blockchain
    • Cryptocurrency Exchanges
  • News

    • Ethereum
    • Events Review
    • ICO News
    • Press Release
  • Education

    • CryptoTicker Starter Kit
    • Education
    • Blockchain For Dummies
    • Crypto entrepreneurs
    • Free Resources
    • Events
  • Cryptoticker

    • About us
    • Advertise
    • Media Kit
    • Submit your Press Release
    • Contact
    • Membership Login
  • Social Media












    Newsletter


  • Imprint
  • Privacy Policy
  • Non-liability Disclaimer
©2021 CryptoTicker

Share

Share stories you like to your friends