Tether is a highly capitalized cryptoasset that is distinguished in the space by maintaining a dollar peg to the price of its asset. The growth of this asset has been incredible, as has been the speculation that it maintains too close a relationship with the exchange Bitfinex. It has even been accused of manipulating prices to its own advantage.

This latter claim is highly doubtful, and traces mainly to its record of trading to the last quarter of 2017. But cause and response can be difficult to discern through audit trails alone. In this appearance on Boom/Bust, Jeffrey Tucker explains that high a volume is exactly what one would expect in a period with high price increases in the effort to maintain the peg. The creation rate of Tether itself is governed by the companies dollar holdings, so the accusations of possible malfeasance may in fact be baseless.



Categories: Markets

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