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.
Read also: Bad debts of major UK banks exceeded 50% in one year
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.
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."
/ məˌnipyəlāSHən /
1. discovery on the open market of an illiquid asset in the adoption phase
"he stacked so many sats that it was clearly handling"
– Matt Odell (@matt_odell) November 4, 2019
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. "
Anyone who writes about the "lone whale" or the handling of Bitcoin by Tether / Finex was clearly not there in 2017 and / or has no contact with any Bitcoin companies.
* Every * Bitcoin company I am involved in has experienced a senseless growth in the number of users and the volume of transactions
– Alistair Milne (@alistairmilne) November 4, 2019
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?"
Fortunately I was there to personally attend the millions of open retail accounts @etoro during the 2017 rally. https://t.co/WjmdRHFXmG
– Mati Greenspan (@MatiGreenspan) November 4, 2019
What do you think about the results of the research paper? Let us know in the comments section below.
Images courtesy of Shutterstock.
Did you know that you can check any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply fill in Bitcoin address search to see him on the blockchain. In addition, visit our Bitcoin Graphics to see what's happening in the industry.