Bitcoin is slipping after a study claiming its 2017 bull run was driven by market manipulation
Business Insider
Published Jun 13, 2018 07:03AM ET
Updated Jun 13, 2018 09:59AM ET
- Bitcoin fell 2% on Wednesday after a new academic paper was published claiming bitcoin's price run to December last year was driven by manipulation.
- The University of Texas at Austin paper alleges that exchange Bitfinex may have used Tether, a cryptocurrency it is closely linked to, to support the price.
- Bitfinex's CEO told BI: "Bitfinex nor Tether is, or has ever, engaged in any sort of market or price manipulation. Tether issuances cannot be used to prop up the price of Bitcoin or any other coin/token on Bitfinex."
The price of bitcoin fell against the dollar on Wednesday after an academic paper claimed the cryptocurrency's 2017 bull run was caused by market manipulation at a major exchange — allegations denied by the CEO.
Academics at the University of Texas at Austin on Wednesday reportedly began investigating bitcoin price manipulation , focusing specifically on "spoofing" — the practice of placing fake orders to drive up or down a price — and "wash trading" — the practice of trading with yourself to simulate volume in a market.
Professor John Griffin and his graduate student Amin Shams conclude in their paper: "Our findings suggest that market surveillance within a proper regulatory framework may be needed for cryptocurrency markets to be legitimate stores of value and a reliable medium for fair financial transactions. Additional research is necessary to further understand these markets."
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Written By: Business Insider
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