Researchers from the University of Texas said that the more than twenty-fold growth of bitcoin in 2017 was due to the activities of one large “whale” that traded on the Bitfinex cryptocurrency exchange.
Researchers at the University of Texas updated the results of a study first published in 2018. According to their conclusions, the growth of bitcoin from $900 to $20,000 was caused by the activities of one major player on the Bitfinex exchange, whose name was not named. This conclusion was made based on an analysis of USDT and BTC transactions from March 1, 2017 to March 31, 2018.
“The data we received suggests that not thousands of cryptocurrency traders moved the price up, but one major player,” the authors of the publication said. “As time goes on, people will start to wonder about the fact that investors were handing over billions of dollars to people they didn’t know and who were virtually out of control.”
Last year, researchers at the University of Texas suggested in an article that the growth of bitcoin was due to manipulation by Tether. In their opinion, the company issued actually unsecured USDT tokens and then bought BTC on them, which led to an increase in quotations.
Bitfinex chief legal Officer Stuart Hoegner believes the study is unreliable and “distorted on a fundamental level” because it uses insufficient data sampling.
“Researchers want to use the appearance of scientific work for their own enrichment. You can update the work as much as you want, but it still does not appear academic rigor,” hegner expressed his opinion.
Earlier, researchers at the University of Texas stated that Tether was used both to stabilize bitcoin quotes in 2017, and for manipulation.
“I was watching what was happening at the time and saw millions of retail accounts being created during the huge upswing in 2017,” said Mati Greenspan, senior analyst at eToro.