Tether fails to pump the Crypto market with a $ 500 million release

Tether's movements often coincide with the changes in bitcoin historically, but that trend has not been kept true recently. Tether has recently seen $ 500 million created in cryptography, which is usually the protagonist of a bitcoin rally. Instead, Bitcoin dropped even further as it sits well below $ 7,000.

Tether has long been considered a safe haven for cryptic investors, although due to its relatively low volatility. It is said to be backed by $ 1 of fiat currency, so the currency hovers around the $ 1 sign. This offers a stable option for those looking to invest more conservatively.

Tether has faced charges in the past about his correlation with bitcoin. Reports have been released on several occasions describing the manipulation of bitcoins caused by Tether. The crypt was even sued by a US commercial commission, but no final ruling against the currency emerged. Other reports have found that Tether could be tracked in ether, bitcoin and Litecoin in 85% of the time. During the crash at the start of 2018, the correlation was close to 93% between Tether and the 3 coins.

From spring, the correlation between Tether and those 3 coins began to fade. Instead it has been replaced by a stronger relationship with NEO and EOS. Even with the growing relationship, the creation of the coins this month did not push NEO or EOS more that surprised many researchers. A Chainalysis document commented,

The high volatility for low-volume Tether trading pairs is a typical sign of pump and dump activity. A sudden surge in a particular trading volume followed by a sudden decline is characteristic of price manipulation

The release of coins was also interesting due to Tether's relationship with Bitfinex. Bitfinex is the only direct client of Tether, so all the coins released initially went through Bitfinex before being transferred to an exchange like Bittrex, Binance or Kraken. This report also raised questions about possible conflicts of interest and how exactly the partnership works thanks to their shared management team.