You are here

Release the Kraken: US Cryptocurrency Exchange Slams “Troubling” Tether (USDT) Allegations

tether coin

Kraken Digital Asset Exchange has shared a Sunday blog post taking aim at a (since-updated) article published last Friday that implied the San Francisco-based crypto trading platform was in some way involved in Tether-related (USDT) market manipulation, after having cited multiple “red flags” identified by relevant experts.

Before falsifying the “troubling” article, Kraken made known their disbelief at the half-baked arguments that underpinned its entire premise; expressing how “it defies logic” that the article was ever approved for publication.

The longstanding Kraken exchange also thanked five community members for each composing what they described as “thorough evisceration[s]” of the “would-be Tether takedown” that unnerved certain readers upon its publication last Friday. One such dissection was further shared by the chief executive and co-founder of Kraken, Jesse Powell, as seen below.

Kraken Tackles Tether FUD

The cryptocurrency trading platform – which has been operative since 2011 – provided five rebuts in their Sunday blog post; the accumulation of which represented substantial evidence that poked numerous holes in the accusations implied by last Friday’s widely-read article.

Counter-arguments put forward by Kraken were that:

USDT enjoys price stability due to arbitrage and design;

Kraken’s one USDT market is miniscule relative to overall volume;

USDT price and/or volume manipulation appears futile, anyway;

Exchanges do not see USDT presenting a solvency risk; and

New USDT issuance seems reasonable, given their own fiat deposit figures

Oh, One More Thing

In closing, Kraken’s thorough blog post took aim at one other point raised by the recent article: that the “third-most-common trade” seen on the crypto exchange during the authors’ examination was a suspicious-looking 13,076.389 USDT; potentially indicative of wash trading (i.e., artificially bolstering trade volumes by simultaneously executing buy and sell orders).

In an effort to seek out clarity, Kraken revealed how they asked “the botter responsible for the mysterious 13076.389 orders” how the seemingly random figure came to be. The answer, Kraken disclosed, was exactly that: “literally randomly selected.”

“No Evidence” of Kraken Manipulation, Edit Says

Notably, the article which prompted the need for Kraken to publish their Sunday blog post took to editing their piece on Saturday. Alterations included the statement that there was “no evidence that Kraken itself is involved in any manipulation has emerged.”

Included, also, were comments from Powell. Whilst he did not verify the legitimacy of the data set that was published – despite allegedly having been asked by the journalists to do so some “4-5 weeks” beforehand – the Kraken chief executive revealed that “nothing looks out of place to us in our publicly available data feed.”

Related posts

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.