So as many of you have already heard Bloomberg published an article on June 29, 2018 attacking Kranken exchange and accusing them of manipulation. The accusations focused on the buy and sell orders of Tether on their exchange which ultimately allowed the manipulation of Bitcoin which as we all know controls most of the market.
I read about the reaction and the response from Kraken and they literally said that they were all scratching their head in disbelieve from this article and the lack of knowledge the author showed by these statements, here is their first statement:
“A reporter covering market structure for Bloomberg News inexplicably fails to comprehend basic market concepts such as arbitrage, order books and currency pegs. More troubling, however, was the applause from other “journalist” lemmings as they followed in walking their reputations off a cliff. It defies logic.”
Going back to the accusation; the reporter used some findings from a professor called John Griffin who released a research paper which focused on how individuals were using Tether to buy Bitcoin on on another exchange, Bitfinex. His conclusions were that the transaction elevated the price of BTC and were “consistent with a manipulation hypothesis” (Bitfinex disputed this and BTC fell after this report)
Here is the graph which went along with John Griffins article:
Look, for those of you who have spoken to me on my FB group, I am always talking about market manipulation and how it’s clearly there, it’s also very easy to achieve! Lets be honest, almost all of us, if not all, know or have heard of a pump and dump group, so if it’s possible to do it on such a small scale then why can’t exchanges be moving money around to profit themselves?
But, and please don’t think I am taking sides, I don’t think Kraken is doing this and if they are they must be the most greediest mother fuc… out there. They are one of the bigger exchanges and rack on a lot of $, more than enough to not have to manipulate and put their reputation at risk for more profit, but stranger things have happened.
Bloomberg are basically saying: “there is manipulation because the price of Tether doesn’t rise to $1.10 and it is too stable” SERIOUSLY????? That is what a fuc… stable coin is!!!
Also the Kraken community responded to this article:
“The author of this article is seriously lacking in any understanding of how a market works. There might be manipulation in USDT but he has not even hinted at any credible proofs for it. – u/AlpineJoe888”
Brilliant! I will leave the links to the responses from both sides below but here is the last correspondence or you to read and enjoy:
- The exchange suggests that it only trades in 0.1 percent of the aggregate daily volume of USDT. Kraken also commented that it is not an arbiter of the coin’s prices. Instead, prices are decided by traders. It further stated:
“After reading the Bloomberg article, we scratched our heads, questioning just what type of manipulation was being claimed. was being claimed.”
“Price manipulation? Is it so hard to believe that an asset-backed stablecoin could trade, well… with so much stability? As we discussed previously, one need only take a look at the order book to understand why trades of different sizes result in little-to-no change in price levels. If an order book is too hard a concept to grasp, think about stock at your grocery store. Why doesn’t the price on avocados change every time you put one in your basket?”
The exchange seemed baffled by the allegations and has come back with homework on its order books. It asked Bloomberg to test its hypothesis, adding that the “sensational” report helped journalists in “walking their reputations off a cliff. It defies logic.”
Hahahah look it’s just all a big mess but I must admit Bloomberg got some attention and maybe even some extra money from their advertising campaigns attached to this article. Great marketing or a big fail? A big, big fail as now the reporters job is basically on the line I think and for any of you out there who are regular traders, especially the ones who are making a living from trading (not investing) then Tether is great for falling back on after a trade, is it not? Not many exchanges give you that USD support so Tether is the next best thing so I am not surprised for its large or small orders.
I just want to add that I am not taking ither side at the moment as I have not done enough research or do I, just like most people, have enough evidence to say that these allegations are true, I am simply reporting this piece of news to all of you.
Here are the links to the articles I have discussed and the video I made about pump and dump groups (a must watch)
- PUMP & DUMP groups review
- Bloombergs article accusing Kraken
- Krakens blog – with responses from them and the community
So up-to you how you see this if ill be honest, but stepping aside from this, market manipulation is here and if you don’t believe then you need to wake up and smell the roses. What can we do? Well all the successful people abuse it, they know which news are fake and which are not, they research each and every possible move, they follow the industry influences (or they may be the influences themselves) and they grab the opportunity by the horns and use it to their advantage. They are the ones making the most profit, even in a Bearish market like this.
So before I ramble on to much, the question is are you willing to work with the manipulation or wish to stand against?