Could "Liquid Maintenance" Along With Tether Be Used To Manipulate Markets

2019-08-08T20:39:00.000Z Honest Cash

One of Blockstreams stated goals for tether is for it to be used for exchanges to quickly transfer between each other.  With the recent "liquid maintenance" I started wondering could Bitfinex/Blockstream use these types of outages to further manipulate the price of BTC and other cryptos?  If exchanges are relying on fast transactions between each other to try to keep prices stable between them what happens when they can't do that?  They can't use BTC because it's to slow and no guarantee of getting into the next block.  Now add a sudden minting of a few hundred million tether while it's down. 

Another thing that would be possible is for blockstream to say liquid is down but still allow their own transaction.  Move a bunch of BTC between exchanges during a tether pump when no one else can.  They could just call it  test. 

It seems to me there is huge potential for manipulation here.  Blockstream has a huge conflict of interest with liquid/tether/Bitfinex. 

Responses


RE: Could "Liquid Maintenance" Along With Tether Be Used To Manipulate Markets

by @dc2019

I think that the end goal for any crypto-currency is to learn from the mistakes of other crypto currencies, for example bitcoin(BTC) was the first cryptocurrency and thus at the time quite stable, however the problem was that as machines became more and more powerful so too did the value of the coin, it went up so much due to artificial inflation caused by greedy miners ( there are some who own SERVER FARMS for this you can't compete with them), so I think that fluency is a problem, and the only real solution is to limit crazy robot miners from entering the market and stagnating progress. The stability of a cryptocurrency is directly coherent to it's mining, the more powerful and money hungry people get the worse it is for the currency itself, and this is why btc now is aprox. 9506(as of this post) and it's difficulty levels are nearing impossible, by increasing the mining complexity the currency becomes flat eventually being centralized around a couple of giant corporations who own huge amounts of processing power. So in the end  the winning crypto coin will be the one that bans hyper-miners from exploiting it in the first place. ( and before people start to tell me to go and get a miner, I own 10 of them and the profit margin is barely 0.0006 GPB/w for BTC mining.)