Kraken, a popular cryptocurrency exchange, was a short while ago implicated by one of Bloomberg’s articles of market manipulation using Tether USDT. For over quite sometime this stablecoin has been associated with great controversy. Bloomberg has been reviewing about 56,000 trades from the public ledger of Kraken and there are a number of things that are coming to the lime light.
The market changes
The former Federal Reserve Bank examiner Mark Williams and NYU Professor Rosa Abrantes-Metz are some of the big names that have been quite active regarding the matter. The conclusion that has been arrived at so far is that Kraken has all along had a hand in the recent market changes.
According to the officials, their market was under manipulation and Tether’s USDT stable cryptocurrency is involved as was revealed by the conducted investigations.
The lack of price movement differentiation
Andrew Rennhack, former professional poker player, was among the first persons to uncover the pattern. While addressing several news reporters, he outlined that he had been greatly puzzled by the lack of price movement differentiation. That was in reference to the small and large Tether orders on what he termed a diverse exchange.
He spoke in relation to the resulting impact in which case he pointed out to the fact that there was quite minimal change on the market price despite the fact that there were massive USDT orders at play.
The manner in which Kraken has filed its response to the accusations of manipulation is what has caused quite a stir. It is a matter that is getting most of the market observers and interested parties debating the matter a great deal.
Kraken’s acerbic stance
In its statement, Kraken took what many have seen as an acerbic stance. It came out in full defense against the forwarded allegations of market manipulation.
According to it, an outlook at the article by Bloomberg showed that there was indeed a great misunderstanding regarding the real nature of the cryptomarkets.The Kraken community shares an almost similar view and in a joint statement it stated that it had discovered fault in the original publication’s evidence towards manipulation.
There are also other reports that Kraken cryptocurrency exchange has made it known that it won’t comply with New York inquiry and it will be providing the full details in its next release.
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