Issuance of $500 million USDT Didn’t Influence Bitcoin’s Price: Report

Elikem Kofi Attah
  • A recent report suggests the issuance of $500 million worth of Tether's USDT tokens failed to affect the cryptocurrency market.
  • USDT tokens are often believed to be used to artifically pump BTC's price

The cryptocurrency market cap, despite dropping from a high of about $800 billion to $215 billion is harder to artificially prop up now, as according to a recent report the issuance of $500 million Tethers, often believe to be used to pump BTC, didn’t affect the market.

During the last bull market, there were concerns from within and outside the crypto community regarding cases of alleged upward price manipulation centered around the popular stable coin known as Tether’s USDT.

While some industry experts felt the alleged price manipulation gave the entire cryptocurrency space a bad look, others expressed worry about the absence of proof that all Tether tokens in existence were fully backed by real dollars sitting in bank accounts, and feared that the entire crypto economy could come crashing down if something went wrong with Tether.

Bitcoin Unaffected By Tether

However, there no longer appears to be a link between the issuance of new Tether tokens and spikes in the price of bitcoin and other cryptocurrencies. As reported by Bloomberg News, the current month has seen the creation of $500 million worth of USDT without any corresponding upward movement in bitcoin’s price. The cryptocurrency is currently trading at $6,725, only 5.2% more than its August 1 price of $6,377.

In a study called “Is Bitcoin Really Un-Tethered”, John Griffins and Amin Shams of the University of Texas, claimed that during the bull market of 2017, Tether was used to buy up bitcoins on the popular Bitfinex exchange and other platforms whenever prices went down. Based on their analysis, Griffins and Shams concluded that tether was being used to prop up the price of bitcoin and other cryptocurrencies.

Another research from Chainalysis showed an 85% correlation between the creation of new USD and the price rallies of bitcoin, ether and litecoin. According to the same research paper, the current bear market brought an end to this correlation. There, however, remained a strong correlation between the issuance of USDT and the price movements of EOS and NEO in the first half of 2018.

Children’s Toy Drug Bust Leads Police to $1 Million Crypto Seizure

Michael LaVere
  • Australian authorities seized more than $1 million in crypto following a children's toy drug bust.
  • An Australian couple attempted to transport MDMA hidden in a child's toy through international mail.

Ecstasy hidden in a child’s toy led Australian authorities to a record-breaking cryptocurrency seizure. 

According to a report by the Sydney Morning Herald, Western Australian (WA) authorities seized a record amount of cryptocurrency from a couple attempting to transport ecstasy hidden in a child’s toy painting kit. 

While screening international mail, Australian Border Force (ABF) officers found 27.5 grams of MDMA tablets and a similar amount of powder concealed inside the children’s toy. The report claims the package had been sent from the UK and was en route to the Perth metropolitan area. 

The ABF officers alerted federal and WA authorities, which led detectives from the meth transport team to raid a property in Marangaroo where they seized more than 1.5 million AUD (~1.03 million USD) in cryptoassets. 

A man and a woman were arrested and charged by authorities for their role in the drug operation. 

Detective Senior Sergeant Paul Matthews, who was in charge of the drug and firearm squad, said of the record-breaking seizure, 

While WA Police Force has seized millions of dollars worth of physical property and bank account assets in the course of several drug investigations, particularly those involving established criminal networks, the identification and freezing of over $1.5million of cryptocurrency in these circumstances highlights the current digital environment in which law enforcement agencies must operate.

Australian Border Force commander Rod O’Donnell said that his officers are awake to the “many creative methods” criminals are using to import drugs. 

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