Bitcoin Price Rally in December 2017 Was Orchestrated by One Whale: Research

Bitcoin Whale Single Handedly Caused The 2017 Crypto Bull Run – Report

Now, they have doubled down on their claims and updated their research to assert that the manipulation was not caused by multiple whales working in sync to pump the prices, but it was the job of a single large whale who had the power to move the prices at will, reported Bloomberg.

In 2018, John Griffin, professor at the University of Texas, and Amin Shams, assistant professor at the Ohio State University, published a paper that claimed the Bitcoin astronomical gain in late 2017 was the result of manipulation.

"Our effects counsel as a substitute of thousands of investors shifting the price tag of Bitcoin, it's just just one substantial 1", Griffin advised Bloomberg. "Years from now, people will be surprised to learn investors handed over billions to people they didn't know and who faced little oversight".

The researchers' theory is partly based on Tether's stablecoin to actually being backed by US dollars, which would mean the firm created USDT out of thin air to then buy Bitcoin, which would help the cryptocurrency's price rise.

"This sample is only present in durations following printing of Tether, pushed by a one substantial account holder, and not observed by other exchanges", the new peer-reviewed paper reads.


"Simulations show that these patterns are highly unlikely to be due to chance".

Tether's general counsel Stuart Hoegner denied the claims, saying that the academics' paper was "foundationally flawed" because it was based on an insufficient data set. Though charged by the Commodity Futures Trading Commission and the US Justice Department in 2017 for its use in market manipulation, Tether was acquitted at last. This was their finding in a paper published in 2018, a paper that has since been updated.

Bitfinex and Tether have the same parent company, the largest derivative exchange used its Tether reserves to manipulate its yearly losses of over $850 million.

"Macroeconomic experts and stakeholders in the cryptocurrency ecosystem understand that it is the global rise of digital currency that has driven the markets and demand for Tether".

FYI, Bitfinex and Tether are run by the same people, and both are being investigated for alleged fraud. Bitfinex has said that James' suit is riddled with erroneous assertions. Poland deported him to Greece.

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