Stablecoin Tether used to support the price of bitcoin during market downturns leading cryptocurrency. This is the result of research John Griffin (John Griffin), and Amin Shams (Shams Amin) — two professors from the University of Texas at Austin.
“Comparing blackany Bitcoin and Tether, we found that the organization associated with Bitfinex, buy Tether for bitcoin when its price falls. It brings significant result, and the price of bitcoin starts to grow,” said the researchers.
Griffin and Shams have developed special algorithms that allowed them to conduct a cluster analysis of groups of related bitcoin wallets. Because of this, they figured out how to spread the Тether:
“After the issue Тether goes on Bitfinex, and then gradually moved to other crypto-exchanges, mostly on Poloniex and Bittrex”.
According to them, the token typically is not repaid by the Issuer because the transaction on Kraken, where Тether exchanged for USD, make up a small percentage.
According to the study, the authors came to the conclusion that a similar effect on the value of bitcoin need a small number Тether. According to them, less than 1% hrs currency exchange transactions on the Bitcoin Tether has a significant impact on the price of the latter. They also noted that this scheme works in the opposite direction.
Recall that similar conclusions about the impact of emissions Tether on the price of BTC representatives of the crypto community had done in the past. So the blogger Bitfinex’ED in March, also said that the issue of a significant number of Tether tokens causes an increase in the price of bitcoin.
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