RIGGED CRYPTOCURRENCY MARKETS?? SAY IT ISN’T SO!

Most regular readers of this site know that I've been skeptical from the beginning about cryptocurrencies for a variety of reasons. It's not that there haven't been people who haven't made money from them. It's that I'm more or less opposed to financial capitalism that isn't involved in actual production of something by way of goods and/or services; speculating isn't investing, and it seems to this outside observer that there's been far too much speculating in the guise of "finance" and too little investing. Cryptocurrencies always struck me as being a variation on currency and securities speculation. Add to this the problem of cyber security in general, and the (to me) unpleasant fact that the Bank of England was thinking about crypto-currencies, and that pretty much did it for me: (1) finance capitalism, coupled to (2) speculation being done on (3) cyber-systems plus (4) a famous central bank considering "doing its own crypto" pushed my suspicion meter into the red zone.

And those, suffice it to say, were the reasons that when Mr. V.T. sent along the following article, I sat up and took notice:

Meet The Finance Professor Exposing Rigged Markets One Academic Paper At A Time

What caught my eye in this article was not so much the fact that Professor John Griffin has been quietly publishing academic analyses of financial markets and their rigged nature (no surprise there), nor even the fact that he is being consulted and read by regulatory agencies. What caught my eye was rather the comments relating to my "cause for worrying number two" above: speculation. In case you missed it, here it is again:

Finance professor John Griffin, along with his doctoral student companion, Amin Shams, were the two academics that drew market-moving conclusions about bitcoin last year, while the digital currency was trading around $20,000. After sifting through 2 terabytes of trading data, they alleged that bitcoin was being manipulated by someone using the cryptocurrency Tether to purchase it. Tether remains a relatively little-known crypto, which is pegged to one US dollar. Part of its appeal is that it can "stand in" for dollars when necessary, according to Bloomberg.

Griffin and Shams authored a paper in June, with the results of their findings ultimately catalyzing many digital assets to move lower, despite the fact that the CEO of Tether publicly denied that its currency was used to prop up bitcoin. (Emphasis in the original)

Ponder the implications of the first paragraph for a moment: one crypto-currency was being used to "prop up" another. Abstract that to general principles and you get the idea: one crypto could prop up another, which props up another, and on and on, either leading back to the origin in a computerized circle, or going on and on indefinitely with the creation of new crypto-currencies, all for the purposes of manipulation.

Professor Griffin, according to the article, alleges that "bitcoin was being manipulated by someone using Tether to purchase it." The question is, who is that "someone"? In relationship to that question, ponder also the very next sentences: "Tether remains a relatively little-known crypto, which is pegged to one US dollar. Part of its appeal is that it can 'stand in' for dollars when necessary, according to Bloomberg." Now add that "little" insight to the "abstraction to general principles" and one has a system whereby not only various crypto-currencies can be manipulated by other crypto-currencies, but if they in turn are pegged to the dollar, and more and more manipulation of crypto-currencies occurs with such pegged cryptos, then what one might be seeing is an attempt to secure the dollar's reserve status by moving part of that status into cryptos.

And that lends a little corroboration to a theory that's been out there, if you've been following the speculations about the origins of the idea of crypto-currencies being ultimately tied to the American intelligence community.

And, now that I think about it, it's also a good way fund that hidden system of finance, by harvesting wealth through crypto-manipulations.

So I'll make a prediction: I suspect that over time, we will hear more and more stories of these types of manipulation, and that slowly, over time, interconnected webs of such manipulation will emerge. (And yes, that was my high Octane Speculation of the day.)

See you on the slip side...

16 thoughts on “RIGGED CRYPTOCURRENCY MARKETS?? SAY IT ISN’T SO!”

  1. but if the SHTF can you wipe your ** with it? or light a fire when the BICS run out? or roll a joint in California ( whom just legalised it).

  2. I don’t know what is wrong with people, “investing” something create out of thin air, and no one actually know how it exactly works, I’m not sure if I should sigh…. at them or laugh at them…..

  3. anakephalaiosis

    Patristic exegesis provides the first clearing house instrument in natural state. The Runic symbols are proof to the fact.

    When Sauron forged the evil ring, to rule them all, the Druid circles were corrupted into slavery of central banks. Distributed clearing-space spells Doomsday to Sauron.

    Originally, the Druid circles were an instrument, to peacefully settle disputes between 10+2 tribes in the zodiac.

  4. Dr Farrell, no high octane speculation on your part this time. I think you’ve been on the money (pun intended) with this one from day one.

  5. it’s gambling alright for everyone who doesn’t own the casino. the house always wins and takes their cut as well in this casino.

    so what gosh is talking about is not so much profiting off the shock doctrine as he is talking about minimizing losses.

    i’m guessing that we’re all to be forced out of the currency we’re currently forced to use. then we’re to be forced into a new currency that the house owns the vast majority of. aka the house runs the price up and down to shake out more equity from all those who don’t own a stake of that currency as big as the house’s stake. aka us. and the house is going to take a cut of our equity on the way out of today’s currency and another cut of our equity on the way into tomorrow’s currency. (india’s currency come to mind much?)

    soooo, does getting into that next currency early seem like a good idea? is it even doable?

  6. Let’s drop the term speculation and call it just plain gambling and it’s another tool for our alphabet agencies slush funding.

  7. Because commerce in local space is so critical to the PTB post modern world, an economic system that is digital is considered important to their financial plans. I’m expecting a new Bretton Woods soon. Who knows? Like the Patriot Act it was probably written 30 years ago and is waiting for the technologies to become accepted and distributed for swift implementation. (Pun intended.) When that system is constructed you can bet there will be a trigger event to get it passed. Will it, too, pass under the shadow of night?

    1. OC: “When that system is constructed you can bet there will be a trigger event to get it passed.”

      Excellent point! The PTB operate under the Problem -> Reaction -> Solution method-of-operation, so we can expect some BIG ‘problem’ when the time is right. It would probably be useful to Brainstorm the most-likely artificial problem(s), so that we can be on the other side of the pasture from the cattle chute. Joseph?

  8. Robert Barricklow

    Before reading the article; I have to say when it comes to markets[any],
    it’s the Chicago Way: The fix is in.
    Outstanding! Just read that since its pegged surreptitiously to the dollar; the cryptos are meant to prop-up the dollar reserve currency status[currently being attacked by China, Russia, Japan?, etc.]
    Now that, with the multi-purpose deep pools of money going to unknown darker pools, adds to the overall picture of many angles controlling markets – inside/outside.
    WOW!

  9. Bix Weir has done quite a bit to expose the fraudulent nature of Tether (which has recently had its USD peg broken) and the convicted pedophile(s) he believes are behind it (and the Bitfinex exchange). Tether was promoted as the crypto equivalent of a money-market fund in a traditional portfolio. As Bix claims, it looks like a multi-billion dollar scam – one of many in the crypto sector; but there are also many others who are doing good work, offering an alternative to the “rigged, corrupt and broken” fractional-reserve re-hypothecated-to-infinity system – people like Reggie Middleton at Veritaseum, for example.

    1. Robert Barricklow

      Seeing as the whole paper currency game[now cryptos, as well] has been just that -a big con game, since Christ kicked them out of the Temple
      [and, of course, even waaaay before Christ took his kick-ass action].

  10. anakephalaiosis

    File sharing communities have their own monetary systems with distributed clearing.

    Next step is to file share a judicial system based on patristic exegesis into public domain.

    Point is to make your own matrix, and make it go viral. That is name of the game.

    TRICK OR TREAT 8
    Friendship is not true,
    unless sorrow before joy
    is fully paid.

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