The price of bitcoin has been experiencing a serious volatility in recent days. The price of up to 7600 euros is reported to drop to as low as $ 5,900. The possibility of manipulation, allegedly done by Bitfinex in the past few days, has increased with the price being lowered again after a few days.
What exactly is the inner face of what's happening, what's going on in the back streets of the market while we sleep? Let's briefly get to know Tether before we answer these questions.
Tether (USDT)
It is stated that all tokens belonging to the crypto currency (USDT) are supported with 100% dollar in the site of Tether, which is known as the first currency to bring crypto money to the market. So $ 1 is reserved for every USDT token in the market. But there is no control that guarantees this ?? According to the company's claim, an audit company's accounts are audited on certain dates. Is this enough or reliable?
The price of Tether always has to be fixed around $ 1. Coinmarketcap according to the lowest value in the history of USDT 0.94 dollars and 1.05 dollars the highest value on record.
Many crypto money exchange countries accept tether instead of dollars to avoid dealing with compliance laws. So many traders prefer USDT / BTC pair instead of USD / BTC pair. Thus, the stock market is free from the need to list money like dollars, euro, yen separately, and it also gives users the opportunity to trade in a sufficient number of currency pairs by using a single currency (USDT) representing all the crypto parables.
Bitfinex
Bitfinex, known as one of the pioneers of the stock exchanges on the market, is known to be the partner of the company that issued USDT tokens. You can see striking facts about the relationship between Bitfinex and Tether by following the writings of BitCrypto'ed Named Medium user. The Bitfinexed account, which the same person directed on Twitter, sheds light on many of the things we know about this issue in detail.
Let's take a look at the chart of the 80 million USD tokens that were claimed before.
In this chart, it can be seen that a big pump has been realized in Bitcoin price immediately after the 80 million tether has been put on the market.
Another graph that covers a longer period can be seen below. The graph below shows the relationship between the price of Bitcoin and USDT.
The bitcoin price can be watched since 2015, the chart is striking data, the USDTs that are printed are always positive.
SegWit2x was another bullish USDT edition of hard fork and the one thing that did not escape the careful eyes of the market on the agenda that the cancellation had occupied last week. The responsibility for this process, which took place in the past days, is also shown as Bitfinex.
According to the allegations, in recent days, USD 20 million worth of stocks have been sold to the market and the USDTs are getting bitcoin and pump the price of bitcoin to a great extent. Although the SegWit2x plan can be expected to increase significantly with the raising of the plan , the price of BTC which we can expect to rise in a short time from 6,700 to 6,000 USD in a short time is explained by Bitfinex selling BTCs with the USDTs.
To what extent can these striking ideas be true in the USDT, which does not stay with the examples we just gave up and where there are countless pretenses?
Let's first take a look at the tether circulation and company data.
In the early hours of November 13th tether.to in circulation according to the data we received from the site USDT 594 million dollars, that is located in the tether. Only 333 thousand dollars of this money is the owners of the company.
I will share below the address that all tether tokens have been published since 2015, namely, circulation, all the retroactive transactions can be seen in this context:
http://omniexplorer.info/lookupadd.aspx?address=3mbyqmmmskc3agwkj9fmo5lsptw1zbtwxl
On the other hand, on November 11, a $ 30 million tether has been printed. In fact, tether entry is not just between these intervals, but constantly at intervals. In November, a total of $ 125 million was put into the tether market.
Now let's take a look at the stock exchanges in which the tether is held, according to the information given at the site of the company. As will be seen below, Bittrex ranks first with $ 242 million USDT, followed by Polonex with $ 209 million, and Bitfinex ranks third with just $ 16.2 million. The source of the small quantities found at other addresses is not specified except Kraken.
It is difficult to say that the Tether company is playing on these numbers; because not only in Bitfinex, but in Bittrex and Poloniex. If a deceit or deceit is being done, then these stock exchanges are also within this loom.
Let's keep on looking at the data we have.
It is clear that Bitfinex can not speculate with $ 16.2 million on the USDT account. Because in the $ 200 billion market, such a small amount of money can move the price of up to $ 40-50, which is not permanent. Even when we think of all the Tether, $ 594 million is equivalent to 1 in 400 (1/400) of the total market. Even if we think that all USDTs are used for speculation, it seems difficult to raise the price by thousands of dollars, in short, if USDT speculations are made, and even if done, Bitcoin price can not reach 7000 - 7500, which is around 2000 - 3000 USD.
On the other hand, there is something more important. I think the main thing to consider is Tether's company accounts. If there is little money in the account of the company up to $ 1000, there is a problem here and it will shake the confidence in the USDT deeply. For this reason the company's bank accounts must be open to continuous monitoring, users must be alert and the existence of this money must always be proved; otherwise, the value of the so-called USDT in the market will not equal the value of 1 USD and will lead to many different strains along with the question of trust.
In summary, there are a number of claims about tether and bitfinex; but in the Bitfinex calculations very little USDT is seen. It seems difficult for the mentioned stock market to maneuver the market with such a small amount. However, speculation attempts may have been or may still be happening, as it is in the case of assertion. For now, it is wrong to say that there is not completely or exists according to what you have. However, with Bitfinex's speculations, Bitcoin would not have seen these prices.