Currently this coincides with speculations about price manipulation and the double-spending problem at Tether. An overview of the Bitcoin price and the bear market.
The downward trend in the Bitcoin price is not stopping at the moment. With just over 5,000 Euros, Bitcoin is swinging at its lowest point of the year to date, an end does not seem to be in sight at the moment. In the value pair BTC-USD a new annual minimum has been reached in the meantime. Within the current quarter, the leading crypto currency lost 50 percent, while since the last all-time high in December it has even lost 75 percent.
The crypto market is currently in the hands of the bears
The scene is looking for reasons. In fact, the emotional state and the justifications change greatly depending on the interests involved. The market is still volatile, traders are emotional – the bubble bursts. Again and again. But while the air is escaping, something has actually happened in Tether’s environment that can influence the current price.
The Chinese cyber security company SlowMist found a weakness at Tether on 28 June that makes double spending possible. In a tweet, the security company confirmed that they could send USDT to an Exchange without having to enter the correct transaction values. This means that users can be credited with tokens without actually having sent them – Double Spending. The security company’s tweet was followed by a statement from the founder of Omni Layer, whose platform is based on the tether.
Immediately one of the world’s largest Exchanges took the floor
“It looks like we’re dealing with the problem here that an Exchange didn’t check the transactions properly. They accepted a transaction marked valid=false, which they should not have done. The second “double spend” transaction was marked false=valid, which they also accepted. If I don’t miss something here, the error is clearly in the Exchange.”
This means that users could also get tether for invalid transactions and thus have an infinite supply. So you could buy Bitcoin twice without actually paying for it – an imbalance that can affect the Bitcoin price. However, since at the moment we don’t know how often this has happened or how many users have been “affected”, we have to be careful not to slip into FUD.
In a statement OKex stressed that they were not affected by the problem:
“We are aware of the problems with the USDT. And we can confirm that OKEx is not affected. We assure you that your assets are safe with us.”
The fact that Tether has an influence on the Bitcoin price is discussed again and again. For example, a recent study suggested that price manipulation at Bitcoin was due to the StableCoin.