Using fake money in unregulated exchanges means the price goes up. Until someone gets arrested this will continue.
Your accusation is entirely speculative as using "real" money in regulated exchanges has the same outcome. Edit to add: and you've got no proof.
The CFTC said in their ruling that Tether was not backed by the US dollar. Therefore, it was fake money.
Unregulated exchanges can manipulate the price. Tether is just fake money that makes it all run smooth.
Tether accounts for 80% of all Bitcoin transactions. When you manipulate the price/amount of Tethers then you manipulate Bitcoin price.
Manipulate the price of Tether? It's pegged to the USD. Manipulate the amount of Tether? You mean how they are authorized, issued, redeemed and destroyed?
You should read the CFTC report. Tether was not always backed 100% by the dollar. The peg is set on unregulated exchanges which can be manipulated. Tether is hardly redeemed so there is still 69 Billion Tethers floating around to manipulate Bitcoin price.
I read it. Speculation again. Where's your evidence that those $69billion is used to manipulate the price of BTC?
Tether isn't redeemed in any large amount. Its only use is to buy other crypto which creates increased demand and higher price. If you increase the Tethers without any dollar backing that is creating fake demand. Again, Tether accounts for 80% of all Bitcoin transactions. If that were to go away, Bitcoin price would likely drop. That is the manipulation of Bitcoin price.
There is no lie about Tether accounting for 80% of all Bitcoin transactions. Read through the last couple of pages on this thread and you can get the links.
This is the bit that requires a quantum leap in logic: from Tether being used to buy crypto to the conclusion that the increase in demand and higher prices is evidence of manipulation. It certainly makes it easier for many to buy crypto, especially if there are no trading pairs in the currency someone is paid in, but we can ignore fundamentals I guess and just call it manipulation.
You are right that Tether acts like a sweep money market fund in the stock market brokerages. However, money market funds are regulated to guard against fraud. Tether and other stablecoins are not regulated. That should change.
They only settled for the time period of 2016-2018. Tether has continued to commit fraud since then and there is still the SEC and DOJ to worry about. In addition, there are other state attorney generals who are looking into the stablecoin fraud and could limit the interest bearing accounts in their particular state. Not end of story...
