The constantly growing cryptocurrency market is becoming more difficult to manage exchange rates of coins. From the beginning, the coin stablon Tether does not have a significant impact on the course Bitcoin and Ethereum. The goal now traders with a token trying to manipulate the market, have become more small players — NEO, and EOS. About it writes Bloomberg.
The developers of Tether has been accused of manipulating the prices of Bitcoin and Ether. In June, professors of the University of Texas John Griffin and Amin Shams found out that traders used the tokens for the artificial Pampa of Bitcoin prices in 2017.
Who is manipulating the prices of cryptocurrencies
According to the report Chainalysis, the correlation between Tether and Ethereum, Bitcoin and Litecoin in the beginning of the year fell to 93 percent, however, in the case of EOS and NEO it remains high. This gives traders the opportunity to manage the rates of these coins. For example, the issue of half a billion new tokens Tether in August could significantly affect the value of EOS and NEO. Their courses fell by 44 and 37 percent, respectively, believe in Chainalysis.
Traders still see an opportunity to profit from manipulating the prices of some of the new cryptocurrency with a relatively low volume of trading by type of EOS and NEO.
Tether uses a fairly opaque schemes, so that the user of the crypto community have suspected its developers fraud. In late June, Chinese SlowMist told about the vulnerability in the work of the coin — according to her, users can carry out transactions with the coin unchanged balance. Analysts recommended that all trading venues that operate with a Tether, immediately to cease all transactions with the coin. A week later Tether reported the “independent” audit, which showed that the tokens are safe and provided with a sufficient amount of dollars.