Mounting concern over cryptocurrency values

Mounting concern over cryptocurrency values

Published at: 2018-02-02 10:53 | Author: CIJ Journal
Concern in the world of cryptocurrencies is mounting on the one hand because of fears that governments are going to step in to begin regulating the new financial instrument. But on the other side of the fence, suspicion is growing that the prices of virtual currencies are being propped up by anonymous investors through carefully-timed trades. The New York Times writes that hundreds of millions of dollars worth of the cryptocurrency Tether keeps being created when values start falling. The new coins are sent through the Bitfinex exchange to purchase Bitcoins, which has the result of driving the price back up.

“This became more and more concerning, because every time the markets went down, you have seen the same thing happen,” Joey Krug told the NYT. The co-chief investment officer at Pantera Capital, which runs several virtual currency hedge funds, says the implications are serious. “It could mean that a lot of the rally over December and January might not have been real.” In December, a US regulatory agency called the Commodity Futures Trading Commission subpoenaed Bitfinex, causing a temporary run on virtual currencies. Suspicions were raised further last week when Bitfinex fired its auditor, Friedman.

Similar Stories:

Czech National Bank raises rates to 1.25%
The Czech central bank has raised interest rates again to 1.25 percent far sooner than it  »
OTP buys Societe Generale banks in Bulgaria, Albania
In an effort to reorganize its assets, Societe Generale has sold its banks in Bulgaria and  »
BF.direkt lends €523m over 3 quarters
BF.direkt AG financed a total of 94 real estate projects for a total volume of €523m ove  »
DekaBank provides €117m for Goodman JV scheme in Ergolding
DekaBank has arranged a €117.3m loan facility on behalf of KWASA Goodman Germany, a co-i  »
The future is not out of our hands. Indeed, the main purpose of organised real estate is t   »
Lower prices means lower costs for manufacturers and carriers, and thus reduced product pr   »
The most important thing is client understanding. Quite simply, clients need a much greate   »