Tether might be one of the most controversial currencies given the fact that each Tether unit (USDT) is backed by one US dollar (USD). That is how Tether is presented as the ultimate stable coin, offering fast and secure blockchain-based transactions, being presented as the most commonly integrated digital asset.

As such currency, Tether is said to represent solely an alternative in form of blockchain-based payment method in oppose to the traditional way of making transactions, which is why we have never seen USDT going too far up o0r down from the value of 1$, confirming the stability mirrored in Tether drawing support from USD, always having 1 USDT equal to 1 USD.

However, Tether seems to have more power over the market as it most recently made its first transaction from the Tether treasury, that way pulling Bitcoin out of the frequent market dips, pulling its price from 6,500$ to 7,500$.

Tether Made the First Transaction from Tether Treasury

Almost two weeks back, Bitcoin could be seen bouncing back up by an astonishing 1,000$ per one unit, allowing BTC to reach the value of around 7,500$ per one unit. In this case scenario, Tether has made its first transaction from Tether treasury, placing 50$ dollars in circulation that way.

As the intervention brought 50 million dollars worth of tokens, Tether soon afterward pulled 30 million dollars out of the market, getting the funds back to the Tether treasury.

The intervention took place on August 27th, during which Bitcoin instantly climbed up to 6,800$ per one unit, soon afterward touching the price of over 7,000$, however, the funds from the Tether treasury affected multiple currencies during this case.

The funds were transferred to Bitfinex while over 22% of trading volumes on this exchange were clearly traded against USDT, that way affecting the overall market capitalization in a positive manner.

The next day, on August 28th, over 50% of trading volumes related to Bitcoin trades were made with USDT, clearly having Tether pulling out BTC up against the fiat.

The trading pattern of USDT against Bitcoin and other cryptos is clearly orchestrated, although the replenishing of the overall value of cryptos in the market took some time after the funds from the treasury were brought to Bitfinex.

Some community members and crypto enthusiasts are considering a case scenario where USDT units are being used by bots given the fact that the pattern of trades appears to be mechanical.

The fact that Tether is probably affecting the price of Bitcoin in a great matter, being hosted on Bitcoin protocol through its issuance via Omni Layer Protocol, didn’t become just obvious from the most recent intervention from Tether.

Apparently, while Bitcoin against USDT trades made up for 10% at the beginning of 2018, during the third quarter of 2018, Bitcoin trades against USDT make up for 80%.

Bitfinex and Tether CEO Denies Allegations Regarding Price Manipulation

Although the patterns of trades against USDT on Bitfinex are showing that Tether is most likely being used for price manipulation, previously having journalists from Bloomberg reporting about Tether price manipulation on Kraken exchange, the CEO of Tether and Bitfinex, JL van der Velde, denied all allegations regarding the price manipulation with USDT.

The CEO of Tether from Tether Limited and Bitfinex also related to the mentioned franchise, simultaneously representing the exchange where Bitcoin is showing immense trading volumes, stated that Tether or Bitfinex were never involved in any type of price manipulation to this date.

He further stated that the issuance of Tether cannot possibly affect the price of Bitcoin or any other currency in the market, despite the fact that the patterns of USDT trades are oddly matching the case of BTC bouncing back up against the fiat during the first transaction made with Tether treasury.

Despite the fact that the CEO of Bitfinex and Tether is claiming that USDT doesn’t have anything to do with the alleged price manipulations, further on September 4th, trading volumes of Bitcoin against Tether went up to over 60% that way creating an interesting pattern of USDT/BTC trades as Bitcoin kept on its recovery against the fiat.

As far as the price of Tether concerned, USDT is said to be backed up with the value of USD, that way keeping the value of Tether always at the price of 1$, carrying the status of a stable coin.