Tether, the company closely related to Bitfinex exchange which is being investigated by the NYAG, put out a statement in response to an unpublished research report that alleges that USDT is responsible for manipulating the cryptocurrency market.
Many on crypto-Twitter posted that Tether was behind the 2017 bull run and was manipulating the price. However, there hasn’t been any concrete evidence to suggest the same. In a recent blog, Tether acknowledged that there is an unpublished paper that is positing that Tether issuances are responsible for manipulating the cryptocurrency market and addresses these accusations as ” flawed”, “incomplete”, and “cherry-picked”.
Tether boldly stated that this was an attempt at “money grab” by mercenary lawyers who might use this flawed paper solicit plaintiffs for an opportunistic lawsuit. Additionally mentioning that this was Tether’s response before the lawsuit was filed, it stated:
“These baseless accusations are an attempt to undermine the growth and success of the entire digital token community, of which Tether is a key part. It is an attack on the work and dedication of not just Tether’s stakeholders, but thousands of our colleagues, too.”
Tether aka USDT is the biggest stablecoin in the whole of the cryptocurrency ecosystem with a market cap of $4.1 billion. No other stablecoin compares to it, in terms of market cap or trading volume. In fact, USDT’s trading volume has been billions higher than Bitcoin for a while now. So, yes, Tether has had wild success in the crypto ecosystem, while other stablecoins are struggling to get out of its shadow. Tether was also involved in Bitfinex’s lawsuit brought forward by the NYAG.
To conclude its blog, Tether stated:
“Tether and its affiliates have never used Tether tokens or issuances to manipulate the cryptocurrency market or token pricing. All Tether tokens are fully backed by reserves and are issued pursuant to market demand, and not for the purpose of controlling the pricing of crypto assets. It is irresponsible to suggest that Tether enables illicit activity due to its efficiency, liquidity and wide-scale applicability within the cryptocurrency ecosystem.”