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>> No. 15574 Anonymous
14th June 2018
Thursday 4:37 pm
15574 Bitcoin Boom Was Market Manipulation

Bitcoin's epic rise last year may have been more than investor fervor. A study published Wednesday says at least half of the jump in bitcoin was due to coordinated price manipulation.

University of Texas finance professor John Griffin, who has a 10-year track record of spotting financial fraud, and graduate student Amin Shams examined millions of transactions on cryptocurrency exchange Bitfinex. In a 66-page paper, the authors found that tether was used to buy bitcoin at key moments when it was declining, which helped "stabilize and manipulate" the cryptocurrency's price.

"Fraud and manipulation often leave footprints in the data and it's nice to have the blockchain to track things," Griffin told CNBC.

By tracking Bitfinex transactions, which are recorded on a public ledger, Griffin found that another cryptocurrency, tether. was used to buy bitcoin after large price falls. The authors tracked that pattern and found periods of suspicious bitcoin price activity tied to the issuance of tether, which is purportedly pegged to the value of the U.S. dollar.
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>> No. 15576 Anonymous
14th June 2018
Thursday 5:03 pm
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Whatever. I don't understand it. I'm just glad the price is crashing so graphics cards can become affordable again.
>> No. 15577 Anonymous
14th June 2018
Thursday 5:14 pm
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In short, if you step in at key moments when a stock, a commodity or a currency threatens to fall below certain levels, you can actually prevent those down movements. Other investors will see that as a sign of market confidence in the asset and will keep buying and pushing prices up.

If you want to manipulate prices, this can be a far more efficient approach than keeping buying up the price during an uptrend that is happening anyway. The rest of the market will do that for you, because they will believe that an asset is "safe" and won't go down by much even when there is a slight sag.
>> No. 15578 Anonymous
14th June 2018
Thursday 5:22 pm
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Why was tether used?
>> No. 15579 Anonymous
14th June 2018
Thursday 5:50 pm
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Possibly, as an attempt to cover their tracks.

Then again, with blockchain technology, that's kind of a silly idea.

If tether is tied to the U.S. Dollar, then buying bitcoin with dollars would have given them a much better chance of keeping this manipulation a secret.

The much more depressing fact is that there pretty much isn't an asset that is traded anywhere on the planet where market actors don't try to manipulate price action.

If you've got multi million dollars riding on an asset price going a certain way, as the big players do, then usually you will also try to influence price action in your favour.

Much of this is illegal, and so you sometimes read about financial intitutions being fined for market manipulation, such as the LIBOR scandal etc. But the ones who get caught doing this kind of thing are barely even the upper bit of the tip of the iceberg. I would go as far as saying that any price of any publicly traded asset, anywhere on the planet at any given time, is the result of market manipulation.

The reason why you don't hear that much about it all the time is that either a market manipulation is shrouded in enough secrecy to make investigation near impossible, or that the big players, who often have supreme connections to lawmakers, have succeeded in keeping or making it legal in the first place.

I will take off my tinfoil hat now.

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