Coin Metrics co-founder takes aim at WSJ's Tether FUD
Coin Metrics co-founder takes aim at WSJ'due south Tether FUD
Reputable data analyst fires back at "wild theories" near Tether reported by the Wall Street Periodical.
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The co-founder of crypto information and insights business firm Money Metrics has fired back at however another article in mainstream media claiming that the "Bitcoin bubble" has been driven past Tether.
Nic Carter, a erstwhile Fidelity crypto asset analyst and Castle Island Ventures partner, slammed the Wall Street Periodical commodity titled "Backside the Bitcoin Chimera" by Andy Kessler, alleging that it verged on "journalistic malpractice".
"Normally, if yous are a columnist writing in one of the almost respected fiscal publications, you might try and evaluate the information behind that claim, instead of just uncritically accepting it. But Mr. Kessler did no such affair. He just blindly repeated a fanciful claim from an anonymous blogger in order to imply that Bitcoin's price was somehow dependent on Tether."
The honor-winning WSJ writer based some of his fairly all-encompassing criticism on the work of a blogger called "CryptoAnon" in a viral mail service called "The Chip Short: Inside Crypto's Doomsday Machine". Kessler wrote the blogger had "found that as much as two-thirds of Bitcoin buys on whatsoever given day were purchased with Tether" based on CoinLib information.
Raising questions over Tether and its lack of audits and the thought USDT was being employed to buy Bitcoin to "jack upwardly its toll," Kessler added;
"Normally I wouldn't care. Bitcoin is nil, information technology's vapor, a concept of an idea. Transactions using Bitcoin are few and far between. Information technology's non a shop of value—anything that drops 30% in a week tin can't play that role."
Kessler said he must also note that "wallet provider Coinbase, the largest holder of Bitcoin, says it 'does not support USDT.' Exercise they know something? (Coinbase offers its own stablecoin USDC, in partnership with Circle.)
Carter, who is now board chair at Money Metrics, wrote that assessing trade between USDT and Bitcoin using information called CoinLib was "indefensible" as it included tens of billions of wash trading data from exchanges that reputable information sources ignore.
He said any serious trader knows that "many of the exchanges composing the CoinLib sample are non credible, and that the resultant data was thus completely unreliable."
"As I will demonstrate, this data is not sufficient to make the case that Bitcoin liquidity is dominated by Tether, and relying on it is liable to mislead. Unfortunately, the mainstream financial press is now amplifying these erroneous claims."
Carter stated that CoinLib is taking the data outputs from marginal and oftentimes non-fiat connected Tether based exchanges as face value, and "unsophisticated analysts like CryptoAnon" are using it to disseminate FUD about Bitcoin'south liquidity.
He argued that highly regulated exchanges and institutional fund providers do non rely on or even support Tether in some cases and they all facilitate an on-ramp to Bitcoin and support the price.
"Other entities like Cash App, Paxos, Paypal, BlockFi, Robinhood, Bitwise, and Grayscale all facilitate various forms of exposure to Bitcoin and are connected to the commercial bank system and in some cases publicly-traded companies. No Tether nowadays."
Carter concludes that Kessler needs more research and called for a retraction and a correction past the WSJ:
"Wild theories relying on information that everyone in the crypto industry knows to exist erroneous do no ane any good."
Source: https://cointelegraph.com/news/coin-metrics-co-founder-takes-aim-at-wsj-s-tether-fud
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