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A Lone Bitcoin Whale Likely Fueled 2017 Surge, Study Finds

  • Academics update paper that alleges manipulation using Tether
  • Research paper is ‘foundationally flawed,’ Tether lawyer says
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CoinShares' Demirors Responds to Study on Bitcoin's 2017 Surge
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A Texas academic created a stir last year by alleging that Bitcoin’s astronomical surge in 2017 was probably triggered by manipulation. He’s now doubling down with a striking new claim: a single market whale was likely behind the misconduct, seemingly with the power to move prices at will.

One entity on the cryptocurrency exchange Bitfinex appears capable of sending the price of Bitcoin higher when it falls below certain thresholds, according to University of Texas Professor John Griffin and Ohio State University’s Amin Shams. Griffin and Shams, who have updated a paper they first published in 2018, say the transactions rely on Tether, a widely used digital token that is meant to hold its value at $1.