Another professor, another research study, another conclusion on whether there is price manipulation of bitcoin (BTC).
Back in June, researchers at the University of Texas shook up the cryptocurrency world when their paper concluded the exchange Bitfinex may have generated artificial demand for bitcoin and inflated prices last year by using the virtual coin tether (USDT) to buy bitcoin. The researchers found that when the amount of tether in the market increased, cryptocurrency prices rose. The price of ether (ETH) and Zcash (ZEC) increased even faster after influxes of tether. Bitfinex denied it was involved in any price fixing.
Now comes Wang Chun Wei, a lecturer at the business school of Australia’s University of Queensland, who says tether, the leading stablecoin, has had no meaningful impact on the price of bitcoin.
Although Wang Chun Wei’s findings were originally published online in May, they have only just been accepted for the October 2018 issue of Economics Letters, according to CoinDesk. The researcher’s findings focus on the volume of tether in the market and changes to that volume.
“Our findings show that tether grants were potentially timed to follow bitcoin downturns and subsequent bitcoin/tether trading volumes increased,” according to Wang Chun Wei. “However, the impact of tether grants on bitcoin returns were not statistically significant, and therefore tether issuances cannot be an effective tool for moving bitcoin prices.” Read more here.