Please don’t skip this message — it only takes a minutes to read. Sorry to bother you, but time is running out.

Bitcoin is freedom. If you think independent, ‘bitcoin-only’ media is important, if you believe information and education about bitcoin matters for adoption, and if you have gained something from our work, we would be grateful if you could chip in $21. 

Join the 2% of our readers who occasionally make a donation. If everyone reading this donated just $21, we would reach our target in a couple of hours. $21 is all we ask for. To cover the cost for our servers, editors, writers, and thumbnail artists we rely on our readers’ generous support. 

How You can chip in:

  • Send sats as a tip to a writer. All of our writers have an active tipping widget.
  • Join our campaign on 
    Awesome perks are waiting for you such as the limited edition Bukele Blend Coffee from El Salvador.

Your support ensures that Bitcoin News stays independent with a laser focus on Bitcoin and only Bitcoin.


Crypto Community Critiques Bitcoin-Tether Manipulation Study

Crypto Community Critique Bitcoin-Tether Manipulation Study

Support free writers: > send a tip

written by

A study published earlier this week by economics professor John M Griffin concluding that the value of Bitcoin has been manipulated via Tether (USDT) has been rejected by portions of the cryptocurrency community, with the criticism that it had clearly not been peer-reviewed.

Findings of the study

Griffin claims in his research that Bitcoin has been routinely manipulated by supposedly USD-backed cryptocurrency USDT, while also implicating prominent trading platform Bitfinex. Much of the Bitfiniex management team overlaps with that of Tether, and the exchange site is the main conduit for USDT. In a statement given to Bloomberg, Bitfinex CEO JL van der Velde rejected any accusation of the company’s involvement.

A more detailed look into the findings of the original study was covered by Bitcoin News yesterday.

”Coordinated FUD”

Much of the backlash from the community online rejects it as a coordinated FUD attack, dismissing the analysis as ungrounded pessimism. Twitter user Whalepool, maintaining some 36,700 followers and describing itself as a “community of daytraders focused mainly on Bitcoin and other cryptocurrencies”, condemned the study as “a coordinated FUD attack against all of crypto”.

As reported by Finance Magnets, a Reddit user using the pseudonym Priest_of_Satoshi critiqued the study by noting that all it really proves is “people minting Tether are exceedingly good at ‘buying the dip’ and they probably bought about 50% of the dips”. Just like the stock exchange, those trading cryptocurrencies for maximum profits are required to note trends in order to buy and sell appropriately.

Another Twitter user pointed to Griffin’s work at a consulting firm specializing in fraud cases, as well as the fact that the SSRN library where the paper was posted does not require any form of peer-review before publication.

Tether’s actions ”exactly what should happen”

Matt Odell, who is described in his Twitter profile as working in “Bitcoin & distributed systems” with around 13,700 followers, said that the study neither proves price manipulation, nor lack of reserves. The falling price of Bitcoin sees people sell their holdings for USDT, initiating a USDT price rise which prompts Tether to issue more tokens so it again correlates with the price of one USD.

Odell describes Tether’s supply increase during market decline as “exactly what should happen”. He did note in November 2017, however, that the relationship between Bitfinex and Tether had “always been sketchy”, calling Tether “a centralized stop-gap solution until connections to fiat are unnecessary”.

Tether reserves

While Tether may be holding reserve supplies of its tokens in the same way responsible banks are required to, it cannot reveal where its money is held else it would face potential business closure. As some call for Tether to be more transparent in their processes, it is unable to categorically prove such reserves do or do not exist.


Follow on Twitter at

Telegram Alerts from at

Enjoyed the article?

100% of your tips go directly to [email protected]
Need a wallet? Get it here

⚡️ Tip The Author

Help spread this article :) is NOT INVESTMENT ADVICE

Opinions expressed are entirely their own and do not necessarily reflect those of

For informational purposes only. Individuals and entities should not construe any information on this site as investment, financial, legal, tax, accounting or other advice. Information provided does not constitute a recommendation or endorsement by to buy or sell bitcoin, cryptocurrencies or other financial instruments. Forecasts are inherently limited and cannot be relied upon. Do your own research and consult a professional advisor. The opinion of authors do not reflect those of 


bitcoin shop miami

Read More Bitcoin News

Hayek And Bitcoin

Hayek and Bitcoin

Hayek passed long before Bitcoin’s inception, but in his book The Denationalisation of Money, he argued for nothing short of stripping the state of its monopoly power of money itself.

Read More »


bitcoin shop miami

Join our Newsletter

Video of the Week


Latest on Bitcoin News

Join our Newsletter