Joseph Lubin, the CEO of the Atrial co-founder and consensively, has recently disclosed the questions whether the use of Tether’s USDT was used to manipulate the price of bitcoin last year, When it reached a peak time of around $ 20,000.
Speaking at the end of Yahoo Finance, Lubin said that he sees Titan as an interesting project, But not completely stable coin, it is believed that the US dollar has been estimated for 1: 1, it has been used to manipulate markets.
Despite his vision, the CEO noted that investors should be cautious of the stable coin, Because he expects that “many other value constant tokens” will rise and the number will take its position as a static coin.Parallel illustration between the increase in the price of new USDT and bitcoin.
Some claim that Tither does not have $ 2.7 billion in the bank, who withdraw all US Dollars into existence, and pull them out of thin air.
Tether claims all of its coins are backed by USD held in bank accounts, although it refuses to identify the banks. As CryptoGlobe covered, a study conducted by University of Texas professor John Griffin has suggested tethers have been used to manipulate bitcoin’s price last year.
In fact, an analysis published by Bloomberg looking into Kraken’s USDT trading data found several suspicious features. Last year, the US Commodity Futures Trading Commission (CFTC) subpoenaed both Tether and Bitfinex, a leading cryptocurrency exchange that has the same CEO Tether has.
Back in May, the US Department of Justice (DOJ), working with the CFTC, launched a criminal probe looking into potential bitcoin price manipulation. The investigation was reportedly looking to target illegal activities in the market, like wash trading and spoofing.
In an attempt to put an end to manipulation allegations Tether hired former FBI director Louis Freeh to look into its financial situation. Freeh’s firm, Sporkin & Sullivan LLP, found the company had enough USD to back all tethers in circulation, plus a $7 million cushion. It noted, however, it wasn’t an official audit.
Lubin, commenting on the future of the cryptocurrency market after the correction that saw most crypto-assets drop from their all-time highs, revealed he believes “there’ll be a series of irrational exuberant price spikes up, followed by corrections.” Each of these spikes, he said, will bring “a wave of new activity and bring fundamental infrastructure to the ecosystem.”
The CEO of ConsenSys, a firm developing decentralized applications (dApps) built on blockchain technology, has argued “trader types” are behind crypto price swings. While prices go up and down, he implied, developers keep building more “fundamental infrastructure.”