Is Tether Really Manipulating Crypto Market?

Whale Alert account on Twitter reported on Saturday a large transaction of Tether (USDT) worth more than 1 billion coins between unknown wallets. However, it turned out later that the transaction was invalid.

The Twitter account, which tracks large crypto transactions to and from large crypto exchanges, deleted the tweet in order not to “disturb the community in vain”.

The reasons for such attempted transaction are not clear. This left the crypto community open to various theories trying to explain what happened.

One theory goes that this was an attempt to halt the jump in BTC and BSV. On Friday evening, the BSV price demonstrated a surge by 45.48%, while bitcoin price increased by over 4%, according to CoinMarketCap.

Source: CoinMarketCap.com

Tom Craz, the crypto expert, tweeted that the invalid transaction was intended to mess up data sets of analysts to mask the real target of halting BSV pump.

While the invalid transaction (did not) happen between unknown wallets, suspicions about Tether and other USD-backed stablecoins manipulating crypto market already exist. Tether has so far failed to clearly prove the coin is totally covered. A revised lawsuit has been filed against Bitfinex, Tether and their parent firm iFinex, for allegedly manipulating the bitcoin market, according to the Block website.

The lawsuit claims that the defendants “through their unique control and access to printing USDT [Tether stablecoin], manipulated prices of Bitcoin by issuing USDT unbacked by a 1:1 U.S. dollar reserve and using the newly created USDT to purchase Bitcoin through U.S.-based cryptocurrency exchanges Bittrex and Poloniex.”

Whale Alert tweeted — a few hours after the invalid USDT transaction — about a transfer of 5,000 bitcoins worth a little short of 40 million dollars that was made to cryptocurrency exchange Poloniex.

Bitfinex and Tether have denied the accusations contained in the lawsuit, describing the effort as “meritless and mercenary.” Nevertheless, be it Tether or unknown whales, it remains unclear what is really happening behind the scenes.

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