LongHash Releases Research, Debunks The 2017 Single-Whale Theory
November 19, 2019
LongHash Releases Research, Debunks The 2017 Single-Whale Theory
November 19, 2019

LongHash, a blockchain education platform, has released research that it claims debunks the recent single-whale theory of the 2017 Bitcoin (BTC) bull run.

On November 18, it has been announced by researchers at crypto analytics firm LongHash that they have calculated a metric called “Tether Purchasing Power,” which shows more insight into the question of whether Tether (USDT) was used to manipulate the cryptocurrency markets.

According to LongHash, the metric measures how much BTC could be bought with the entire Tether supply at any given time, pointing out that the higher the ratio, the more likely it is for Tether to potentially manipulate the markets.

However, the researchers show statistics that seem to indicate that during the 2017 bull run, Tether Purchasing Power increased until the summer, but then started to decline towards the end of the year.

At that time, Bitcoin was still moving towards an all-time high. 

The data of LongHash seems to indicate that Tether has a chance to manipulate the markets when BTC is in a downward price trend, as it shot up significantly during the bear market by reaching its peak at the end of 2018.

ALSO READ :  Bitcoin Price Doubles Since Its Latest Block Subsidy Halving

The researchers said:

“This suggests that even if Tether were indeed manipulating the market, its ability to do so actually is strongest when the Bitcoin price falls. This contradicts the claim that Tether issuance drove the 2017 bull market. The supply of Tether actually failed to keep up during the height of the bull market.”

LongHash Single Whale Theory

Likewise, the recently updated academic paper titled “Is Bitcoin Really Un-Tethered?” suggested that one single player or entity was allegedly responsible for Bitcoin’s historic price surge at the end of 2017.

According to the paper, the Tether stablecoin and its issuer Bitfinex played a key role in the alleged hoax.

However, Bitfinex denied all allegations by calling the publication “a transparent attempt to use the semblance of academia for a mercenary money grab.” Many analysts agree and laugh off the single-whale theory, saying that while the crypto market is not immune to manipulation, to assume that someone could single-handedly drive the prices up to such an extent is quite a stretch.

ALSO READ :  Bill Gates: If You Have Less Money Than Elon Musk, You Should “Watch Out” Before Investing In Bitcoin

Thus, Juan Villaverde and Martin Weiss of Weiss Ratings agency called it “preposterous”, and added:

“There is abundant anecdotal evidence that throws great doubt on the one-large-player theory. For example, exchanges were swamped and not able to onboard new customers. Google searches for “Bitcoin” and “cryptocurrency” were off the charts. New crypto businesses and ICOs were popping up every day. All of this — and more — suggests that the crypto surge of 2017 was very much a mass phenomenon, with heavy public participation.”

Source: longhash.com | cointelegraph.com


Crypto News Point a news platform of Digital Notice Media Labs is primarily a regular publication of information, commentary and articles focused extensively on fintech, blockchain technology, cryptocurrency, blockchain-based tokens, cryptocurrency market trends, and trading strategies. We do not provide individually tailored investment advice and does not take a subscriber’s or anyone’s circumstances into consideration when discussing investments, nor is Crypto News Point registered as an investment adviser or broker-dealer in any jurisdiction. Information contained herein is not an offer or solicitation to buy, hold, or sell any digital assets.

Affiliate Disclosure: To help support the work we do here at CNP, we often link to products and deals from around the web. Should you buy some of these, we may get a portion of the sale.

We in generally gather content from the major websites. In every article there is always a clear link and attribution to the source publication. If you have any issue with any of our published content taken from your site, kindly let us know so that we can take appropriate action. In any case, the content of the pages of this website is for your general information and use only. It is subject to change without notice.

You May Also like

Bitcoin Car Will Be Racing In Indianapolis 500 In May

Bitcoin Car Will Be Racing In Indianapolis 500 In May

Bitcoin car, the car branded with the Bitcoin logo, will be racing in circles against 32 others in this month’s Indianapolis 500. It has been reported by Jack Mallers, the CEO of Zap, that US racing driver Ed...

Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with experience of 1.5 years. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space. She loves writing about blockchain and other blockchain-related articles.