Bitcoin price discovery is led by the centralized Tether token. BTC price discovery is NOT decided by the free market on fiat exchanges!
Allegations which once dogged the silver and gold markets (that the manipulated futures markets leads price discovery causing artificial pump and dumps in precious metals), now an even worse fate is leading BTC price discovery. The masters behind Tether.to-ken are leading the price discovery of BTC and Tether acts as a centralized ‘bank’ with an unknown trading POLICY.
The most important question facing all BTC / USDT Holders should be:
”What Is Tethers Trading Policy”?
The notion that BTC spot price is driven by free market price discovery is absolutely false. The vast amount of BTC trading volume and price ‘discovery’ happens in and on the grey market that is totally unbanked. The shadow grey market does not have access to real USD banking, instead it uses a fake proxy ‘price peg to USD’, known as Tether Tokens, misleadingly referred to as USDT or more often just USD in the most popular wallets and grey market exchanges. Bitfinex, Mycelium, Dash, Safello, and many more.
Tether business motto known internally as ‘FAKE IT UNTIL YOU MAKE IT’.
In a quest to legitimize crypto currencies globally and drive mass adoption through greed, there is a conspiracy playing to a vulnerability shared by the most unsophisticated market participants, who are most avidly searching for ’how to get rich online’. The Tether.to-ken and the cohabiting market participants led by the pied piper of the Omni protocol Craig Sellars is leading the march forward in cohorts with partners in crime Bitfinex where price ‘discovery’ is often leading that of all other fiat exchanges by sometimes thousands of dollars and greater than 5%. The BTC/USDT spot price on Bitfinex is higher than the BTC/USD spot price on fiat exchanges, thereby attracting new money into their fractional reserve system which also boasts lower trading fees and access to more trading pairs and traditionally less KYC.
In order to understand how Tether artificially sells USDT for BTC at higher prices you first need to understand that if Tether didn’t constantly participate in the market, i.e. sell USDT to often unsuspecting buyers then the market participants who wanted to trade BTC/USD would negotiate and arrive at a different ‘market’ price. A market price is set by the participants, only those who have the commodities can trade them, if one or more participants are removed then the market price changes. If one market participant has deeper pockets and more appetite than the others then the price moves with him being the market maker.
Lets imagine Bob has a strong desire for BTC, Bob runs a fake ‘central bank’ which prints counterfeit USD. These counterfeit dollars are just like the original USD but he has replaced the S/5 to U5D, just like the counterfeit goods you see in scummy illegal ’markets’ they look almost the same but there are a few tiny little details that are slightly different.
Bob wants to get as many BTC as possible and does not care how many fake U5D he prints to get his hands on them, he is fearful he will be put in prison anytime and he’s in a bit of a rush, so he stands outside the BTC mine where all the BTC are made and he starts shouting at the miners, “rollup rollup”, “I’m paying 10% more than anyone else, what say thee?”. BTC quickly flows into his hands. Some people complain that the fake U5D are a bit dodgy looking but Bob assures the miners they can buy drinks in the local pubs as most people don’t check. A couple of people come back to Bob with the fake U5D and want their BTC back, the first few are given BTC back at a much lower value, but soon Bob gets greedy, refuses to take them back and tells miners they can only offload these fake U5D to other people. Pretty soon Bob has printed over 1 Billion U5D and has a large stash of BTC. How much BTC does Bob have? What USD price will Bob accept for his BTC, will he sell it in exchange for U5D or will he want real USD. Who sets the BTC/USD price? What BTC price will miners trade these U5D among themselves?
These questions are instrumental to contemplate how Tether are manipulating the price of BTC/USD. Since they act on the buying side, offering higher fake USD prices in the market to unwitting BTC sellers, often who are not aware they will end up holding fake USDT. They also act on the selling side in legitimate markets, selling stolen goods (they are real BTC which they stole with fake money), in both instances Tether interact in the market place pushing and pulling the market ‘price’ in the direction they choose. By changing polices of buying or selling rapidly they can move quicker than other market participants, they also have greater market intelligence knowing when the news is favorable bringing money in and can see people moving out of the ‘market’.
Simply by issuing fake USD and exchanging them to unwitting participants they are affecting the BTC/USD price, else those same market participants would have found different buyers and sellers with different appetites and costs thereby arriving at different ‘market’ prices. Every single time Tether buy BTC they set the price, they are the market makers, while removing that BTC from the real marketplace, or selling those BTC in the market, again every time they sell BTC in the real USD market place they are the market makers.
Tether is persistently making the price and have done so over 1 Billion times. Every Tether that is printed and enters the market does so at the expense of some other market participant who’s price moved as a result.
Fake price pumps pushing the price of BTC to new milestones and reports in the media of new paper billionaires and hundreds of paper millionaires, trick the popular sensationalist mass media to reprint BTC/Tether propaganda “All Time High Bitcoin Reaches 10k USD(t)”. What is not being reported by the unsophisticated popular presses who are parroting these headline grabbing lies is that there is no free market USD price discovery at the heart of Bitcoin. Instead there lurks a centralized token proxy which has an unlimited printing press, which has magicked up over 1 billion fake USD in the last year to drive the price of BTC to greater than 14K USD.
The other real USD exchanges (as well as newly created futures markets) then set their prices based on this fake Tether lead price while benefiting from all of the ‘naive believers’ who come flooding into these markets with fresh USD wanting the opportunity to get rich quick, while unconsciously paying crazy high trading fees (the sort of fees not seen in equity markets for years), many of whom have never traded stocks or shares in their lives and such participants have little regard for risk or understanding the technology they are buying, during one of the biggest Gold Rushes the world has ever known. Millions of sheep are being rounded up ready for slaughter and are flooding into these markets not wanting to miss the opportunity of a lifetime, driven by their personal biases and distrust of central banks who have been letting the tide out ever since the printing press ‘revolution’ displaced gold backed money.
This frenzy and market mania has replaced critical thinking and the sub culture adopting these ‘digital gold’ assets, espouses a cult following around a popular meme in Cryptoland known as ‘Hodl’. Reports of people making millions of easy USD is driving these market chasers who don’t care about risk or the cost to participate or enter into this fake ’market’ as long as they get to play the game as well, buying in with real cash ’not fake tether tokens’, they are promised to make money, as long as they don’t look too closely at the trading fees, or care too much about being hacked or exploited by market fraud, or taken out by flash crashes or pump and dump market manipulation. In fact the more market manipulation the better. “I want market manipulation too” if this is what is pushing the price up, many claim.
Calling attention to the obvious fraud is treated as a potential threat to everyone in the party thereby spreading FUD. No one wants the music to stop. Hostility and discreditation await any calm voice alerting of fraud that questions the legitimacy of price discovery process that is driving the market mania and attracting fresh money into this system.
Everyone has heard the old conspiracy “Give me control of a Nation’s money supply, and I care not who makes its laws” but the modern day equivalent of that meme is “Give me 10% of every Tx and I will care not how you set the spot price or who prints the Nation’s money supply”.
Who cares about 10% trading fees when these paper ‘profits’ are in the thousands of percents and continue to be reported and there are thousands of new paper millionaires. The new poster boys ‘Winklevoss’ billionaires take ‘The 4-Hour Workweek’ to a whole new level, setting new standards others try to emulate. Other early adopters and cunning investors like Roger Ver and Barry Silbert show by example that if you too convert into digital gold cryptotokens you will be rich. Why adopt a more sophisticated strategy. Why look too closely at any of the details. It’s all so complicated that even these icons of the industry apparently also don’t understand it anyway so what chance have you got. As long the masses can be bedazzled with notions of magic money conjured into existence, with the illusion that real money, in this case ‘USD’ (I know the ironies) are going to magically appear in their wallets and account balances right next to their names sometime soon then this party can continue until the rot sets in.
There are real (not fake) risks with this market manipulation which could stop the music:
- The actions of Tether/Bitfinex would without doubt be considered totally illegal in any regulated market, breaking all sorts of regulations and laws, not least counterfeiting the USD.
- DCG has direct ties to all of the market participants that are profiting from the trading fees of all the new money (unsophisticated) that is entering this market. From exchanges such as Coinbase and Gemini to the futures markets and price fixing in both CME and CBTC.
There is evidence that CME who invested into DCG are indirectly and illegally involved with Tether/Bitfinex though there association and investment into DCG which owns stake in Blockstream which Bitfinex also invested into and are colluding with these market participants as market makers to control and profit from artificial BTC prices. There is strong possibility that the SEC will file charges against Barry Silbert based on insider trading and market price manipulation Via Tether. There is already smoke in this direction following market calls he made in Ethereum classic price calls on Twitter.
There are strong ties between the people and projects Barry Silbert / DCG has previously invested into who are closely affiliated with projects connected to Bitfinex and Tether. There rumors and claims by Bitfinex to have investments with Blockstream, and Tether joining DCG and Tether.
There are links between Freidman LLC the accountants commisioned by DCG, who are also shared by Bitfinex / Tether. A whistle blower within Freidman could expose collusion but that us unlikely because Friedman LLC have a direct conflict of interest being contracted by market makers and price manipulators Tether/Bitfinex and DGC who largely profit from trading fees and volatile price movements. There is a direct conflict of interest on behalf of Friedman who have insider knowledge in Tether market manipulation having access while auditing their accounts, and having direct connections with CMOE through their investments into DCG which profit from price volatility.
There are strong signals of collisions in media outlets that DCG own such as Coindesk who act as a mouth piece for Bitfinex / Tether and there is allegations that Coindesk are looking the other way and failing to report on Bitfinex market manipulation and flash crash oddities.
Coinbase are finding it highly profitable processing all the new unsophisticated ‘investors’ flooding into this market on the back of fake price news generating high trading fees, no matter what price BTC is bought and sold for, Coinbase rake in 7% of that trade volume. DCG (Coinbase investors) are primarily placed to exploit these trading fees with along with DCG via Cryptofacilities setting the BRTI rate for futures contracts.
Not last and not least the market is getting wise to the fact that Tethers are fake, worthless and are rushing to exchange to USDT for BTC, this will move the price of BTC up and down rapidly as market participants clamber for BTC and at the same time back into real USD. Whichever charge is greater will set the volatility of these trading pairs.
There is an open campaign which started on the 2nd January 2018 to inform unsophisticated bag holders to get out of USDT and back into Cryptos. This is is known as the External Tether Audit and was driven by community frustration that Tether has not provided any USD/ BTC audit or insight into their trading strategy thus exposing bag holders of USDT to huge market volatility and risk while also failing to redeem directly USDT for USD which is claimed to be the backbone holding Tether.to the USD peg.
The opportunities to get out of USDT at the rates advertised are fast coming to an end and the rot is starting to gain a stranglehold over the market makers and those conspiring to profit from this volatility.
The fundamental questions everyone should be asking about Tether:
What is the trading strategy of Tether?
How many Tethers will be printed?
How many BTC are held by Tether?
How much of the BTC Tether obtained illicitly have they sold off for real USD?
How many USD are Tether holding?
What is the institutional USDT/BTC price of bulk purchasers by cohabiting participants (how much do other exchanges pay) for Tethers?
Is Tether a for profit business or a central bank charity?
How does Tether make a profit?
Are Tether in the market or out of the market when prices are moving up or down.
Are Tether able to cause flash crashes or do they act to prevent flash crashes?
At what point will Tether stop buying BTC and what will happen to the price if they stop.
Do Tether change their buying and selling policy (pump and dumps) when and why?
Has Tether ever been tested to know how they will act if the price crashes more than 50%, will they convert their own BTC holdings supporting the price (buying their own Tethers back) or will they compete against other USDT sellers to buy more BTC?
Where are the bulk USDT prices published?
If Tether (or something like Tether) is a market necessity, desired by public demand to avoid price volatility of crypto assets and needed by unbanked grey market exchanges then the answers to the above questions should be transparent. The fact that Tether is a black box with deep connections to multitude of colluding companies who trade off of market volatility should be of grave concern to anyone holding USDT and BTC or any alternative crypto currencies. All of the crypto trading pairs are intertwined with BTC which is the market leader and every participant in this market has their paper wealth pegged to this market manipulation!