Kraken’s Tether Trade Looks Very Suspicious

- Advertisement -

Something is not right.

Humans are notoriously bad at generating random numbers. We’re amazingly predictable. That’s why the distribution of trade volumes on Kraken’s USD/USDT pair looks awfully suspect.

“I’ve looked through lots and lots of data, and I don’t think this is real,” said Rosa Abrantes-Metz, a professor at New York University’s Stern School of Business and an expert on manipulation.

Kraken’s bitcoin trade reflects fairly typical human behavior (with volumes clustered around 0.01, 0.1, and 1 BTC). By comparison, its USDT order book looks downright bizarre. According to Bloomberg, over the last month and a half, the most common volumes on the USD/USDT trading pair are 75 units; 1,000 units; and 13,076.389 units.

Source

Yes, between May 1 and June 22, 2018, trades for 13,076.389 USDT were one of the most popular on the exchange‘s USD/USDT trading pair. That’s not a number most people would choose off the top of their heads.

More importantly, based on price and volume data, the exchange‘s USD/USDT order book seems to violate basic tenets of economics. Large and small trades have virtually the same impact on prices (that is, almost no impact). When you think about the dynamic relationship between supply and demand, this doesn’t make any sense. Especially in the cryptocurrency markets, the absence of volatility is shocking.

- Advertisement -

“The mystery is bracketed by another quirk: Oddly specific order sizes – many going out to five decimal points, with some repeating frequently. Another red flag,” Bloomberg wrote.

Tether has become the open secret of the cryptocurrency world. It’s the elephant in the room – the inconvenient truth. While bitcoin believers and Ether enthusiasts worship their pretty trading charts, Tether is the nasty undercurrent that threatens to destroy the crypto discipleship.

Last week, Tether’s management released a “transparency update” through its legal representation, but the information proved woefully insufficient. That report has been mocked in the community:

- Advertisement -

With the Commodity Futures Trading Commission having subpoenaed Tether and Bitfinex in December and the US Department of Justice investigating cryptocurrency price manipulation, all eyes should be on Kraken and the USDT. They just might sink the ship.

Matthew is a full-time staff writer for ETHNews with a passion for law and technology. In 2016, he graduated from Georgetown University where he studied international economics and music. Matthew enjoys biking and listening to podcasts. He lives in Los Angeles and holds no value in any cryptocurrencies.

Like what you read? Follow us on X @Bitnewsbot to receive the latest Tether, trade or other Ethereum cryptocurrencies and tokens news.



Previous Articles:

- Advertisement -

Latest

Uniswap (UNI) Rebounds Above $6 After Brief Uptrend Breakdown

Uniswap's UNI token dropped below its key uptrend line following a failed hold above the $6.00 support level.High trading volumes accompanied the decline, including...

Michael Saylor Invites Joe Rogan to Discuss Bitcoin on Podcast

Michael Saylor has shown interest in discussing Bitcoin on The Joe Rogan Experience podcast.The idea has generated excitement in the Bitcoin community, with some...

Congress Debates Stablecoin Bill Amid Rising Bank and Crypto Tensions

U.S. lawmakers are moving forward with the Senate Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, with debates set to resume after...

American Engineer Drugged, Robbed in Sophisticated London Crypto Heist

An American software engineer lost approximately $123,000 in cryptocurrency after being drugged and robbed in London.The victim was targeted by an impersonator posing as...

Max Keiser Doubts New Bitcoin Treasuries’ Discipline in Bear Market

Bitcoin-focused companies are increasingly copying the treasury strategy used by Michael Saylor's Strategy.Max Keiser raised doubts about whether these newer companies can maintain commitment...

Must Read

7 Best Crypto To Invest In This Year

Investing in cryptocurrencies has become a popular way for people to diversify their investment portfolio and make potential profits.However, with so many cryptocurrencies available...