One of the most popular cryptocurrency exchanges, Kraken, has published a short response to a recent Bloomberg article about the Tether (USDT) cryptocurrency. The authors of the article claimed that the price of Tether was being manipulated on the Kraken crypto exchange, citing “unusually precise order sizes” and the fact that “huge trades affect the price of the currency in the same way as small ones.”
According to Bloomberg, trading that takes place on the Kraken platform every day significantly affects the price of the USDT cryptocurrency. It turns out that the publication's experts view the fact that the USDT rate is stable as a threat, and there is little logic in this.
In response to these accusations, Kraken posted a post on its official blog, which states that “Bloomberg journalists do not understand basic market concepts such as arbitrage, order books, fixed rate.” Kraken staff pointed out several factors that were not taken into account in the Bloomberg article.
The exchange's staff cited three reasons why trading on the platform had little effect on the price - arbitrage trading, the small volume of USDT trading on the market, and the fact that Tether is backed 1:1 to the US dollar.
The Bloomberg article also cited “unusually accurate order sizes,” indicating that at the time of writing, one of the most popular trading sizes on the exchange was 13,076,389 USDT. According to the news outlet, such trades could be a “signal of the use of automated trading programs.”
In response, Kraken claims that its representatives communicated with the trader responsible for placing these trades. His answer was that this number was “chosen completely randomly.”
The exchanger was not the only one who was outraged by this article. Professional poker player Mike McDonald wrote: "This was one of the worst articles I've ever read. It's a valuable lesson for all of us - a poor quality product can be published even by fairly reputable sources."
A Bloomberg spokesman was brief. He said: “We stand by the views expressed in our report.”
According to Coinmarketcap, Kraken is currently the 16th largest crypto exchange in the world. Over the past 24 hours, trading volume on the platform was approximately $101 million.
According to cointelegraph.com
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