The Shocking Claims of Market Manipulation

In a surprising turn of events, researchers have raised significant eyebrows regarding Bitcoin’s meteoric rise to a staggering $20,000 back in December 2017. Their latest conclusion? A single ‘whale’ might be pulling the strings. The academic duo, John M. Griffin and Amin Shams, made headlines again with their claims, diving deeper into the murky waters of cryptocurrency markets. Bloomberg reported their views on November 4, stirring up the digital currency pot once more.

The Case for a Single Whale

Griffin and Shams, hailing from the universities of Texas and Ohio respectively, have taken a magnifying glass to their prior research released in June 2018. They posited that Tether—a digital currency whose connection to the US dollar raises questions—was used to orchestrate market manipulation, particularly following price dips. Their compelling analysis pointed to amazing timing:

• Tether purchases mysteriously coincide with market downturns.
• These transactions result in noticeable spikes in Bitcoin prices.
• All signs seem to lead back to a singular player, manipulating the game.

Data Tango: Tether and Bitcoin Transactions

Taking a fresh look at transactions from March 1, 2017, to March 31, 2018, these researchers argue that the monkey business stems from one main source—transacting through Tether’s sister site, crypto exchange Bitfinex. They assert, rather boldly:

“This pattern is only present in periods following the printing of Tether, driven by a single large account holder.”

In simpler terms, it’s as if a giant puppet master was pulling on Bitcoin’s strings, with little regard for the other smaller fish in the sea—or virtual wallets in this case.

Market Timing or Manipulation?

What’s particularly eye-catching in their findings is the notion of ‘clairvoyant market timing.’ They sensationally state that the likelihood of such patterns emerging by mere chance is nearly as slim as finding a unicorn at a rodeo. With the belief that this one whale either held a crystal ball for market predictions—or wielded a mysterious influence—Griffin and Shams are pushing their controversial narrative to be scrutinized within the academic realm.

Bitfinex’s Strong Denial

As with any captivating narrative in the cryptocurrency world, the accused party has fired back. Stuart Hoegner, the General Counsel for Tether, categorically rejected these claims, labeling their analysis as fundamentally flawed and claiming it relies on an inadequate data set. According to him, the research appears to be an attempt to strengthen a “parasitic lawsuit” against Tether and Bitfinex. And who doesn’t love a good ol’ legal tussle in the ever-turbulent crypto waters?

The Bottom Line

As we stand at the crossroads of academia and cryptocurrency, the assertions made by Griffin and Shams about market manipulation cannot be ignored. Whether their claims hold water or are just a splash in the ocean remains to be seen. One thing is for certain, though: the world of Bitcoin is a stage for drama, and every whale seems to have a story of its own.