A recent investigation into Tether activity on popular cryptocurrency exchange Kraken triggered scathing responses from the exchange, who fired back at journalists that, according to Kraken, fail to understand market basics.
“On Tether: Journalists Defy Logic, Raising Red Flags,” published July 1, 2018, appears to have been issued as a direct response to a recent Bloomberg investigation claiming several patterns identified by a Bloomberg research team were indicative of wash trading or other less-than-scrupulous exchange practices.
The Kraken team took to the exchange blog to post a damning retort to the research published by the news platform, highlighting the fact that the investigation performed overlooks several key factors:
“ … a recent article in which a reporter covering market structure for Bloomberg News inexplicably fails to comprehend basic market concepts such as arbitrage, order books and currency pegs. More troubling, however, was the applause from other “journalist” lemmings as they followed in walking their reputations off a cliff. It defies logic.”
Bloomberg Doesn’t Appear to Understand Stablecoins
One of the primary points raised within the Bloomberg study — the apparent unnatural stability of USDT — is the focus of a significant portion of Kraken’s response, which takes the time to explain to less technically adept market observers that USDT does not experience the same level of volatility because it is collateralized with $1 US dollar.
“If an order book is too hard a concept to grasp, think about stock at your grocery store. Why doesn’t the price on avocados change every time you put one in your basket?”
Kraken’s response also dismantles accusations of market manipulation,