Crypto market crash may have been the result of market manipulation

Crypto market crash may have been the result of market manipulation

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Early this morning, crypto markets almost universally experienced a price drop at around 5 am UTC. Yesterday’s crypto market rally was broken after the flash sale and markets have somewhat recovered and are now relatively stabilized.

Crypto Twitter is still catching on, with only a few users experiencing confusion about the situation.

The markets crashing universally at the same time could be translated to trading bots reacting to arbitrage trading opportunities across exchanges. The uniform drop across most popular trading pairs (apart from stablecoins) leaves a lot of room for interpretation.

Let me know what you think by commenting on the following tweet.

There’s yet to be a real explanation, but looking at the charts, only stablecoins experienced gains at the same time, a signal that a whale pumped the markets, before promptly heading for the exit door. So, let’s look at the anomaly, i.e. stablecoins.

A quick look at WhaleAlert, a twitter account that reports on large crypto movements, we notice a strange phenomenon. Hours prior to the dump, approximately $52 mil USDT were transferred from Tether Treasury to Binance, and another $55 mil USDT was transferred from the treasury to Huobi.

This was followed by an issuance of a new batch of $250 mil USDT, at the treasury.

https://twitter.com/whale_alert/status/1289664910847172609

Find the rest of the WhaleAlert tweets at the end of the article.

Conveniently both Binance and Huobi are the exchanges that experienced the highest levels of USDT-related volume in the past 24 hours, showcasing them as the main price driver behind the action.

Was there foul play and market manipulation behind the rally and subsequent dump, or was this just an opportunity taken by a profit-hungry whale?

While there are hints pointing at an unholy partnership between iFinex (Tether), Binance, and Huobi in an effort to extract profits, there is no substantial proof on which we can make this claim.

Binance Tweets

https://twitter.com/whale_alert/status/1289631627237302278

https://twitter.com/whale_alert/status/1289635988667473921

https://twitter.com/whale_alert/status/1289662687614402561

Huobi Tweets

https://twitter.com/whale_alert/status/1289672670460751872

https://twitter.com/whale_alert/status/1289652748405768192

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Zoran Spirkovski is a freelance journalist, brand strategist, and author published by CryptoBriefing, BeInCrypto, CryptoNewsNet, and NewsBlockchain. He writes about blockchain technology, cryptocurrency, branding, marketing, and productivity, and other stories that brew up in his mind. He writes a daily blog about the same topics at zoransp.medium.com and he regularly contributes to freelance discussion groups.

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