Kraken claims that Bloomberg manages a futures market in Bitcoin

Kraken claims that Bloomberg manages a futures market in Bitcoin

Cryptocurrency exchange Kraken commented in his blog a recent article by Bloomberg, which States that the exchange manipulates Tether (USDT). Kraken hinted that the material was written with the purpose to influence the price of trading bitcoin futures.

29 June four of the authors said that the market Tether on Kraken shows a warning signals (red flags) that should not be ignored by regulators. Kraken claims that the article is written badly, defies logic and shamelessly copied by other “journalists-lemmings”. The exchange also suggested that Bloomberg might have its own motives to write such an article:

“Since we decided, “armed with pitchforks and torches of justice,” to fight manipulation in the market, we ask you to first pay attention to this fact: the material from Bloomberg News was published on June 29, the last business day of the second quarter, the day expires on a variety of futures contracts, thereby creating the proverbial red flags.”

The Kraken apparently is referring to the futures CME, which ended June 29 with a settlement date of 5 July. Kraken imply that the article was able to lower the price of Bitcoin, bringing profits to those who shorter.

In his article, Bloomberg States that deals a small amount of sometimes have a greater impact on the price USDT than large transactions, and points to a large number of major orders, which could hardly be accommodated by ordinary people:

“Unlike the price of Bitcoin, which fluctuates in tandem with changes in trading volume, price Tether inconsistent changes large and small orders for buying and selling coins”.

In response, the Kraken retorted that tokens USDT provided with US dollars at the rate of 1 to 1, which distinguishes them from Bitcoin, the price of which is determined by supply and demand.Tether, according to the exchange, is “clearly manageable asset”.

Kraken humbly acknowledged that although they are proud of their reputation, the exchange is not sufficiently large to affect the price of USDT:

“This level of open rates USDT is happening in different markets and not only pairs USDT/USD on Kraken, which for the past 24 hours had less than $1 million in trading volume”.

Kraken spoke with a trader, responsible for orders in the amount of 13076.389 USDT, which amounted to “7.9% of the total trading activity, with Tether 1 may-22 June,” according to Bloomberg. The trader admitted that such a sum “was chosen at random”.

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