An influential trader known as Joe007, who made $ 20 million in cryptocurrencies between December and January, says business tactics such as spoofing seem to be the main force affecting the price action in 2020. Thus, the recent Bitcoin Rally may be called ” phantom money. “
Spoofing, an attempt to create a false sense of demand by placing large purchase or sale orders without the intention of fulfilling them, is a frequent tactic in the cryptocommunity. Based on this, Joe says he is concerned about the lack of fiat influx into the crypto markets. It tracks the USDT capitalization that traders use to end crypto positions.
Tether appears to be the main culprit
Tether Limited, company behind the Tether cryptocurrency, has historically released a new USDT at a time when the Bitcoin price was heading upwards. Although the company faces repeated allegations of market manipulation, it claims to create new tokens just to meet demand.
Recently, the company has released another 25 million USDT. This action appears to be part of a pre-agreed token swap and does not actually increase Tether’s total bid.
Despite this, Joe007 is unlikely to leave the cryptocurrency market. On the contrary, he claims that he is still fascinated by crypto technology and its potential to have a transformational impact on the world.
“Bitcoin is fascinating… ..connect some quite remote areas of human knowledge to create a whole new socio-cultural-economic phenomenon. It sounds banal that price is its least interesting aspect, but it still holds true. “
Critics have long argued that Tether, which has close ties to Bitfinex’s crypto exchange, is spending more USDT than having dollars in the bank to raise the price of Bitcoin and affect the market. Since then, we have seen plenty of accusations and plenty of defenses and explanations.