A Critical Scientific Research Article alleging that the only whale was behind the 2017 Bitcoin Rally

Crypto commentators tore up in a new research paper that a rise in Bitcoin prices in 2017 would be the cause of a simple whale. The paper, which has been widely mentioned in Bloomberg and the Wall Street Journal, has been criticized for failing to understand that massive influxes of links (USDT) in cryptoconomy are not indicative of a single source representing the entire purchase pressure.

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The legendary solitary whale

The final version of the research paper, which moved Tether's lawyers for weeks, was finally released. His conclusion – that a "lone whale" alone was responsible for propelling bitcoin to $ 20,000 – has not changed, but the findings have been reinforced by the addition of peer review. Crypto commentators are not impressed, however, and dismissed the paper as flawed.

Critics Savage Research Paper claims that the 2017 rally by Bitcoin "width =" 1000 "=" 667 "srcset =" https://news.bitcoin.com/wp-content/uploads/2019/11/lone-whale.jpg 1000w, https://news.bitcoin.com/wp-content/uploads/2019/11/lone-whale-300x200.jpg 300w, https://news.bitcoin.com/wp-content/uploads/2019/11 /lone-whale-768x512.jpg 768w, https://news.bitcoin.com/wp-content/uploads/2019/11/lone-whale-696x464.jpg 696w, https://news.bitcoin.com/wp -content / uploads / 2019/11 / lone-whale-630x420.jpg 630w, https://news.bitcoin.com/wp-content/uploads/2019/11/lone-whale-190x128.jpg 190w "sizes =" (max-width: 1000px) 100vw, 1000px

According to the latest article published by University of Texas Professor John Griffin and Ohio State University's Amin Shams, first published in 2018, BTC purchases on Bitfinex increased every Bitcoin value decreased further. "This trend is present only in the periods following the printing of Tether, driven by a single major account holder, and is not observed by other exchanges," concludes the latest version of the document, which should to be published in the Journal of Finance. He adds:

The simulations show that it is very unlikely that these models are due to chance. This large player or entity has either presented a clairvoyant market timing, or exerted on the bitcoin an extremely important impact on prices that is not observed in the overall flows of other smaller traders.

Tether's General Counsel Stuart Hoegner against that the document was "fundamentally flawed" and probably published to support a "parasitic litigation". He continued, "This is a transparent attempt to use the appearance of academic for a seizure of money by mercenaries."

The correlation does not correspond to the causality

In the cryptosphere, observers almost unanimously condemned the research paper. "The Venn diagram of people who do not believe in markets but who see conspiracies and manipulations everywhere coincides perfectly with people who are not active in these markets," Nic Carter tweeted. "It's up to foreigners to pretend that the markets are wrong. Umbrellas cause rain, finds a Texas scholar.

Circle CEO Jeremy Allair labeled the story of the WSJ on the subject of "extremely low reporting" and explained that "in 2017/2018 there was a demand for the purchase of BTC and a massive gathering of spare parts. The majority of this demand came from Asia and China, and since there were no CNY ramps to the BTC, everyone turned to the USDT offshore processors. These processors would then generate large impressions of USDT. The only thing this supposed analysis shows is that Asian traders demanded FIAT to buy BTCs. "

Ari Paul echoed Allair's sentiment: tweeting "Their" research "is based on a basic misunderstanding of how financial assets work." Research Director at DAR Lucas Nuzzo request "What happens if the authors misunderstand that the great addresses of the USDT are often highly unionized and that what appears to be a" single whale "are thousands of different depositors?"

What do you think about the results of the research paper? Let us know in the comments section below.


Images courtesy of Shutterstock.


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Kai Sedgwick

Kai has been manipulating the words since 2009 and bought his first bitcoin at $ 12. It's been gone for a long time. He has already written white papers for blockchain startups and is particularly interested in P2P exchanges and DNMs.

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