Researchers announced that much of the price rise of bit coins was artificially induced

byDavid McBee

Economists who have uncovered the fraud of the financial industry so farBitcoin(Bit coin)By analyzing the transaction data, we announced a research report saying "Many of the price rise of bit coin in 2017 was artificially brought". To raise the price of the virtual currency exchangeBitfinexAnd its subsidiaryTetherTether Limited issuing Tether Limited is seen to be involved.

Is Bitcoin Really Un-Tethered? By John M. Griffin, Amin Shams :: SSRN
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3195066

Bitcoin's Price Was Artificially Inflated Last Year, Researchers Say - The New York Times
https://www.nytimes.com/2018/06/13/technology/bitcoin-price-manipulation.html

Bitcoin's rise may be linked to price manipulation, study indic - The Verge
https://www.theverge.com/2018/6/13/17461392/bitcoin-tether-bitfinex-university-texas-report-fraud-price-manipulation


Researchers at the University of Texas at Austin in the United States announced the findings that a significant price increase in the virtual currency, including Bitcoin, Ethiaryam, Alto Coin, occurred in 2017, was artificially caused. I conducted an investigationJohn GriffinThe professor is a person known for uncovering the cheating of the financial world. According to Professor Griffin, there is a clear pattern that "multiple people or one person who made a major virtual currency transaction on Bitfinex raised the price of the virtual currency". Even while prices are falling on other exchanges, Bitfinex says demand for bit coins has been rising due to buying virtual currency using tether. Professor Griffin also confirms that the more the tether intervening in the market, the higher the price of the virtual currency on the spot.

The allegation that tethers were related to the rise in bit coin price has been raised so far, and the news that the US Commodity Futures Trading Commission (CFTC) issued a subpoena to Bitfinex and Tether Limited was also reported It was.

"The rise in the bit coin price is caused by the buying support by the virtual currency" tether "emerged allegations - GIGAZINE


Professor Griffin analyzed the transactions described in the ledger with an algorithm and found that half of the bit coin price rise that occurred in 2017 occurred after the tether was used at the exchange. In addition, we know that the tether was used at the timing when the bit coin price was sluggish.

Although the investigation report does not confirm evidence of pricing operation itself, since the price was rising for exchanges that are supporting than exchanges that do not support tether, there is a "suspicious pattern" I point out that.

As Bitfinex is a Hong Kong based company, the US government will be able to intervene only when American investors are included in the transaction. Although Bitfinex's investigation by the US government is still under way as of June 2018, it is said that "the investigation is still in its early stages."