Washington is investigating whether the price of the largest cyber device has been driven up with the help of another crypto currency. The focus is on the tether coin. BTC has become very popular recently, it is widely used for gambling in online casinos and also for betting on soccer or other games.
Tether – this project started in 2014 with the promise to create stability. In contrast to crypto currencies such as Bitcoin, which fluctuate strongly in price, the value of tether is tied to the dollar, so in technical jargon it is a “stable coin”. But for months there has been accusation that leash was mainly used to manipulate the exchange rate of the bit coin.
Now the Justice Department in Washington, which is also the highest public prosecutor’s office in the USA, is intervening in the investigations, as the news agency Bloomberg reports. The US Securities and Exchange Commission (CFTC) had previously been involved in the investigation.
According to Coinmarketcap.com, the price for tether on Tuesday afternoon was just under 98 US cents, slightly below the target of one dollar. The value of all tether coins is quoted at just under 1.8 billion dollars. This concerns however only the circulating ?coins?, the entire inventory covers the Website with nearly 2.6 billion units of approximately in each case one dollar.
On a smaller scale, there are also tether versions for the euro and the Japanese yen. On the other hand, TruUSD is also a smaller alternative to the dollar tether.
The allegations are mainly based on a 54-page study by John Griffin and Amin Shams of the University of Texas. The authors examined the period from March 2016 to March 2018 and assessed the cash flows between different currencies as well as crypto currencies and exchanges. From their point of view, the result suggests the thesis of manipulation. Overall, the results of our research essentially suggest that price manipulation may have led to distorting effects on crypto currencies.
The two scientists have investigated two possible versions of the use of tether. One is the “pull” version: in this case, a new line would be produced to meet customer demand. And then the “push” version: in this case large quantities of leash would be produced and then actively used without prior demand. The results of the study speak for the second version.
The founders and operators of the tether system then produced massive quantities of tether for several months and bought Bitcoin. The tether volume was massively increased from mid-2017 onwards. At the same time, Bitcoin rose to a record level of around 20,000 dollars. Shortly after the Bitcoin crash, the volume of the leash then remained stable in 2018 (see chart).
So far it is unclear whether the investigations of the US judiciary will lead to concrete accusations against individuals. Again and again doubts are expressed as to whether the tether coins, as claimed by their producers, are actually underlaid one to one with dollars.
The case is also interesting because Tether is part of an international network. The so-called Paradise Papers from 2017, which were otherwise mainly subject to tax evasion, made it known that Tether and the Bitfinex crypto exchange in Hong Kong are supported by the same group of people.
DSGVO: Data protection requirements intensify
- The DSGVO offers companies stricter guidelines on data protection and data security. The use of mobile devices by employees must also be regulated and secured in accordance with data protection regulations.
- Bitfinex has been processing the majority of transactions in tether since 2015. The head of both companies is Jan Ludovicus van der Velde – but he has rejected all allegations of manipulation.
- Crypto currencies: Strongest sell-off since the bankruptcy of Mt. Gox – Bitcoin crash continues
Strongest sell-out since Mt Gox bankruptcy – Bitcoin crash continues
While this possible fraud case is gaining more and more attention, the value of the entire crypto area is melting away. On Tuesday afternoon, the Bitcoin was a good $4,500, 13 percent less than 24 hours earlier.
The crypto currencies serve various purposes, but are all subject to speculation. Bitcoin was developed exclusively for payment transactions. Ethereum is the basis for a system that allows projects to be created that are controlled by algorithms. So-called ICOs, in which crypto money is raised from investors, are usually based on Ethereum. XRP, on the other hand, is a pure settlement currency of the Ripple system, which specialises exclusively in payment transactions for banks and other financial service providers.