In case you missed this, a recent study found solid, yet circumstantial evidence suggesting that bitcoin prices last year may have been manipulated. (The same authors from UT-Austin did another study a few years back finding VIX manuipulation so they are not without credibility.) An easier to read summary can be found here.
“Tether seems to be used both to stabilize and manipulate Bitcoin prices,” finance professor John Griffin and co-author Amin Shams wrote in a paper released Wednesday.
While regulators and other technical folks (will) analyze this in more detail, my cautionary antenna went up when I read this about Tether on page 8:
The Bitfinex exchange started in 2012, but experienced rapid growth and now claims that they "are the world’s largest and most advanced cryptocurrency trading platform." Paradise Papers leaks in November 2017 (emphasis mine) named the Bitfinex exchange officials Philip Potter and Giancarlo Devasini responsible for setting up Tether Holdings Limited in the British Virgin Islands in 2014
More on the ownership/executive opacity for both companies is detailed here.
So add this to your information about crypto. If you invest (or, have invested), be careful.
Good luck!
Submitted June 14, 2018 at 12:21PM by arnexa https://ift.tt/2ybyRoh
