$ 29,187.00 3.54%
$ 1,980.75 2.76%
$ 49.34 5.97%
$ 0.084100 2.74%
$ 7.78 3.43%
$ 1.38 2.87%
$ 0.000160 19.38%

Tether sentiment can be used for market manipulation.

singapore 2064905 1280

According to recent research, Tether sentiment can be linked-to chances of market manipulation.

Research conducted by trend analyst solution Augmento showed a positive correlation between Tether (USDT) sentiment and market capitalization. This correlation can be used by malicious actors to manipulate the market price to gain benefits. Moreover, the report suggests that Tether sentiment can be a signal indicator for traders.

The research also concluded that the sentiment is not stable with negative sentiment dominating. This is evident through sharp spikes of discussion which dissipate quickly. This move, when accompanied by a move in market capitalization, could be used to foreshadow another market cap move in the next eight to twelve days.

Such sentiment spikes have been previously seen before the occurrence of price drops. This may be because market capitalization rises are often followed by FUDs (fear, uncertainty, and doubts) on social media. This psychological phenomenon would create a decrease in price.

So how could it be exploited?

A malicious actor can deliberately create a price drop by spreading false FUD on social media platforms. Then the person could use the created low price to buy USDT at a discount and gain a profit by selling it later for a normal price.

Previously there has been speculation that Tether has been related to Bitcoin price manipulation through its market cap. This would make measuring Tether sentiments incredibly useful signals.

Nonetheless, Tether continues to expand its project now in the form of a Chinese stablecoin. The Yuan-pegged stablecoin would be backed by yuan in offshore accounts under the CNHT ticker. However, no official date for its launch has been announced yet.

Ahmad Asghar

Ahmad Asghar

A first generation gamer at heart and tech buff by nature, have been involved in the tech sector for better part of a decade. With that insight and knowledge, he now covers blockchain, cryptocurrency and everything fintech so others can make sense of the industry.

Related News

Hot Stories

Ethereum wipes out $8.10B while eagerly awaiting 'The Merge'
Michael Saylor says market crash will benefit Bitcoin
Crypto exchanges are relisting LUNA after the crash
Terra admits to facing technical issues in resuming LUNA and UST transfer 
RoboApe could be valued over Dogecoin and other crypto-memes.

Follow Us

Industry News

eBay jumps into declining NFT business with Wayne Gretzky's help
Crypto crowd’s shocking prominence in Davos
Balenciaga U.S. stores to accept BTC and ETH starting June 2022
BTC Pizza Day is celebrated amid crypto crash
CV VC launches Africa-focused blockchain fund