Thursday, 18 October, 2018

Bitcoin's soaring value down to manipulation, scientists claim

The bitcoin price on Wednesday.      Markets Insider The bitcoin price on Wednesday. Markets Insider
Laurie Berry | 14 June, 2018, 12:58

The paper by John Griffin, a finance professor at the University of Texas who has researched fraud in other markets, and graduate student Amin Shams, found that the virtual coin Tether was likely used to prop up Bitcoin prices late previous year.

John Griffin and Amin Shams, in their research article, 'Is Bitcoin really Un-Tethered?' aim to investigate the relation between Bitcoin, other cryptocurrencies, and Tether, a cryptocurrency purportedly clinched to the USA dollar that carries more transaction volume than dollars.

"Tether issuances can not be used to prop up the price of Bitcoin or any other coin/token on Bitfinex", Jan Ludovicus van der Velde, Bitfinex's chief executive, said in a statement. The price of bitcoin fell as much as 5 per cent after the report was published, approaching its lowest point of the year.

According to Griffin, Tether coins are created in large quantities, such as 100m.

Bitfinex CEO J.L. van der Velde told CNBC that neither the exchange nor tether helped to boost bitcoin prices.

USA, Canada and Mexico to host 2026 FIFA World Cup
It marks the fifth time the North African country has failed to secure the right to host the worldwide football tournament. The event will be the first to feature 48 teams, up from the current 32-team tournament, which begins on Thursday.

Using algorithms to analyze the blockchain data, we find that purchases with Tether are timed following market downturns and result in sizable increases in Bitcoin prices.

Tether appears to have stopped issuing new tethers as of recent times, possibly in fears of stricter regulation, or lack of legitimate deposits into the company's reserves that may prompt more printing; regardless of being due to the lack of new printed tokens or simply due to lack of demand leaving Tether's company in need of new deposits, Bitcoin's price drop past $6,500 has proved the researcher's hypotheses. He cautioned that a full understanding of the patterns would require more analysis.

Other large virtual currencies that can be purchased with Tether, such as Ether and Zcash, rose even more quickly than bitcoin in those periods. Griffin has previously written research identifying fraudulent patterns in other financial markets.

Beyond his work at the University of Texas, Mr Griffin has a consulting firm that works on financial fraud cases, including some in the virtual currency industry. He is most notably recognized for a 2016 paper that found manipulation in a financial contract known as VIX which was tied to flux in financial markets which were later confirmed by a whistleblower. "The buying of Bitcoin with Tether also occurs more aggressively right below salient round-number price thresholds where the price support might be most effective".

"There were obviously tremendous price increases a year ago, and this paper indicates that manipulation played a large part in those price increases".

Recommended

  • Google Home can now handle up to three commands at once

    Google Home can now handle up to three commands at once

    Multiple commands have been supported on Google Home speakers for a few months now but the support has been relatively limited. At the Google I/O 2018 , the company had announced the multiple actions feature , but it has just started to roll out now.
    Freeland calls tariffs 'absurd' after meeting U.S. Senate committee

    Freeland calls tariffs 'absurd' after meeting U.S. Senate committee

    Asked if he was apologising for the comments, Navarro said: "Yeah, absolutely". "That's going to cost him a lot of money ". Bloomberg reports that a 25 per cent tariff on imported vehicles could lead consumers to do one of three things.
    Courtney Hadwin Receives Golden Buzzer After 'AGT' Audition

    Courtney Hadwin Receives Golden Buzzer After 'AGT' Audition

    She even made no-nonsense judge Simon Cowell , who is her favorite, smile from ear-to-ear. In 2018, she was a finalist on The Voice Kids UK , airing on ITV in the United Kingtom.
  • Royal visit confirmed: Harry and Meghan coming to NZ

    Royal visit confirmed: Harry and Meghan coming to NZ

    Since then the royal family balcony appearance has become an important royal tradition beloved by fans and photographers. It's official! The new royal couple exchanged their vows at a royal ceremony at Windsor Castle, near London, in England.
    Urges U.N. cooperation as fighting flares in Yemen

    Urges U.N. cooperation as fighting flares in Yemen

    As the last port controlled by the northern rebels, it is the lone source of humanitarian aid for millions across northern Yemen. Officials issued a statement Monday that Yemen analyst Adam Baron described as a "yellow light" for the Yemen offensive.
    E3 2018: God Of War New Game Plus Mode Confirmed

    E3 2018: God Of War New Game Plus Mode Confirmed

    That will also be possible, and quite frankly, you may need it, New Game+ won't just be a sunny stroll through Midgard. And it is this Sophie's choice you have to consciously make as you enter the last eight months of working on a game .
  • Boat carrying over 900 migrants docks in Italy

    Boat carrying over 900 migrants docks in Italy

    The French government was more conciliatory Wednesday, when the Foreign Ministry said France recognized the burden Italy has carried. "It is shameful.
    New Vivo Nex Phone Has No Notch, and Almost No Bezels

    New Vivo Nex Phone Has No Notch, and Almost No Bezels

    It's unknown what amount of RAM and storage it will come with but it's expected to have a price tag in the region of US$600. The Vivo NEX flagship edition with 128GB and 256GB of internal storage is priced at 4498 Yuan and 4998 Yuan respectively.
    Kim takes night tour of Singapore ahead of summit with Trump

    Kim takes night tour of Singapore ahead of summit with Trump

    Trump says "we've got a very interesting meeting in particular tomorrow, and I think things can work out very nicely". Kim Jong-un and Singapore Foreign Minister Vivian Balakrishnan (left) take selfies on the Jubilee bridge.
  • Manchester City to start title defence at Arsenal

    Manchester City to start title defence at Arsenal

    Two of England's biggest clubs in the world will face off against each other in the Aviva Stadium on 1 August. North London rivals Arsenal face a tough first two games without Arsene Wenger.
    New iPhone set to get this Android feature you’ll love

    New iPhone set to get this Android feature you’ll love

    But the company has been a target of some in law enforcement for rejecting efforts to allow easy access to iPhones. Companies including Cellebrite and Grayshift sell the devices, which plug into the Lightning port.
    Fyre Festival Founder Billy McFarland Arrested On More Fraud Charges

    Fyre Festival Founder Billy McFarland Arrested On More Fraud Charges

    Each carries a maximum sentence of 20 years behind bars. "He targeted the same victims who tried to attend his Fyre Festival". A sentencing hearing has been set for next Thursday, June 21 for McFarland's new counts of wire fraud and money laundering.

Anthony Martial wants Tottenham move Anthony Martial wants Tottenham move Martial is under contract for next season and the United also have the option for the 2019-20 season. How much would you be willing to spend in order to sign Martial this summer, Blues?

Reach out to those who may be struggling Reach out to those who may be struggling Iggy Pop, Queens Of The Stone Age and Questlove were among the names to pay tribute to Bourdain after news broke of his death. The topic has returned to the spotlight after celebrities Kate Spade and Anthony Bourdain took their lives last week.

Friday declared holiday to mark Eidul-Fitr Friday declared holiday to mark Eidul-Fitr Muslims are now nearly at the end of their month-long fasting period known as Ramadan, which began on 16 May 2018. The date of Eid ul-Fitr typically varies from country to country , depending on whether the moon has been seen.

Kerr contract extension top priority for Warriors after Finals win Kerr contract extension top priority for Warriors after Finals win The speculation is under way, and cleveland .com is outlining four scenarios that could unfold this summer. This series has been a painful reminder to James that the great teams have more than one king.

Arab states attack Yemen port key to feeding 8.4 million starving people Arab states attack Yemen port key to feeding 8.4 million starving people Pro-government strikes began after Iranian-backed Houthi rebels ignored a deadline to withdraw by midnight (21:00 GMT on Tuesday). The past few weeks have been filled with frantic last-minute attempts to bring the rebels to the negotiating table - to no avail.

This 2018 iPhone may come with three cameras at the back This 2018 iPhone may come with three cameras at the back Huwaei has introduced a triple rear camera setup with its Huwaei P20 Pro and limited edition Huawei Porsche series smartphone. Especially, the Previous year Apple placed orders for the production of almost 100 million iPhone 8, 8 Plus, and X units.

US sanctions Russians over military, intelligence hacking US sanctions Russians over military, intelligence hacking Divetechnoservices, one of the sanctioned firms, was awarded a contract to procure a submarine for the FSB, according to Treasury. These sanctions also target Russia's tracking of underwater communications in order to eavesdrop on world wide communications.

Promoter Frank Warren reveals date and location of next Tyson Fury fight Promoter Frank Warren reveals date and location of next Tyson Fury fight Fury believes he will soon be ready to take on the likes of heavyweight champions Anthony Joshua and Deontay Wilder. Seferi did a good job of surviving and Fury struggled to lay a glove on him in the second.

Raccoon scales high-rise in downtown St. Paul Raccoon scales high-rise in downtown St. Paul By midafternoon, the raccoon had ventured an additional 10 stories up, its claws somehow digging in enough to continue. The animal made it to the roof early Wednesday, where the baited traps were waiting.

Fed hikes interest rates again, raises outlook for more increases in 2018 Fed hikes interest rates again, raises outlook for more increases in 2018 On a 12-month basis, both overall inflation and inflation for items other than food and energy have moved close to 2 per cent. In comparison, the Reserve Bank kept Australia's official cash rate at 1.5 per cent, its record low for the past 20 months .

G7 summit fails to heal trade rift as Trump stands alone G7 summit fails to heal trade rift as Trump stands alone She also said the European Union would "act" against the US trade measures. Kim must not see American weakness". "He's a pathetic little man-child".

Two prizes are on the table for Trump in North Korea summit Two prizes are on the table for Trump in North Korea summit Trump also tweeted: "Meetings between staffs and representatives are going well and quickly. but in the end, that doesn't matter". Pompeo, who led the outreach as Central Intelligence Agency director, traveled twice to North Korea for preliminary talks.

AT&T wins court approval to buy Time Warner over Trump opposition AT&T wins court approval to buy Time Warner over Trump opposition Notably, the ruling does not require AT&T to divest any assets of Time Warner to complete the transaction. Shares of Comcast, Fox and Disney were barely changed in after-hours trade.

Farrah Abraham screams at Beverly Hills Police during hotel arrest Farrah Abraham screams at Beverly Hills Police during hotel arrest Farrah also called the cops arresting her "pathetic", and she denied that she assaulted anyone. Farrah Abraham was arrested yesterday at the luxurious Beverly Hills Hotel in Los Angeles.

[Newsmaker] South Koreans hope Trump-Kim meeting brings lasting peace [Newsmaker] South Koreans hope Trump-Kim meeting brings lasting peace But he said sanctions would remain in place for now and argued "we haven't given up anything". There is a " huge difference between the two ", the anonymous official said.