{"id":400917,"date":"2019-10-08T12:53:12","date_gmt":"2019-10-08T12:53:12","guid":{"rendered":"https:\/\/wncen.com\/?p=400917"},"modified":"2020-10-02T10:26:15","modified_gmt":"2020-10-02T10:26:15","slug":"etoro-market-update-manipulating-profits","status":"publish","type":"post","link":"https:\/\/wncen.com\/trade\/etoro-market-update-manipulating-profits\/","title":{"rendered":"eToro Market Update: Manipulating Profits"},"content":{"rendered":"

Hi Everyone,<\/p>\n

Once again, the stable coin known as Tether is under heavy fire and as this drama plays out the stigma threatens the reputation of the entire crypto market. Not that crypto\u00a0had such a pristine reputation to begin with but the nature of these specific allegations directly calls into question price stability in an already volatile market.<\/p>\n

A class-action\u00a0lawsuit<\/a>\u00a0has now been filed in the State of New York with claims of fraud and market manipulation and the plaintiffs are asking for upward of $1.4 trillion.<\/p>\n

The claim is that Tether, in collaboration with Bitfinex, printed unbacked USDT out of thin air in order to buy bitcoins for their own private stash and to prop up the price.<\/p>\n

Now, I’m not saying if these allegations are true or false, that’s for the court to decide. What I will say is that in major financial institutions across the globe, the process of creating unbacked currency for the purpose of purchasing financial assets and propping-up market prices is simply known as common practice.<\/p>\n

So if anyone is worried that the price of bitcoin has been ‘pumped’ please take a moment to think about the effects of a full decade of ample quantitative easing and other liquidity injections multiplied by the fractional reserve system and how this might’ve affected the value of stocks and bonds.<\/p>\n

@MatiGreenspan<\/a>\u00a0– eToro, Senior Market Analyst<\/p>\n

Due to a local holiday, there will be no daily market update tomorrow. We’ll resume on Thursday the 10th.<\/p>\n

Today’s Highlights<\/h3>\n