At the heart of the study, the paper suggests that:
1. A U.S dollar-backed cryptocurrency is being created without having the U.S. dollars to back it.
2. The newly created U.S. dollar-backed cryptocurrency is being used to purchase Bitcoin when Bitcoin prices fall.
3. Creating more of the U.S. dollar-backed cryptocurrency (without the U.S. dollar backing) led to an inflated price for Bitcoin.
The study entailed a forensic accounting of crypto trading activity during 2017 and 2018 to discern patterns suggesting that one trader or entity was responsible for the Bitcoin surge towards $20K in 2017.
A Texas academic created a stir last year by alleging that Bitcoin’s astronomical surge in 2017 was probably triggered by manipulation. He’s now doubling down with a striking new claim: a single market whale was likely behind the misconduct, seemingly with the power to move prices at will. “Our results suggest instead of thousands of investors moving the price of Bitcoin, it’s just one large one,” Griffin said in an interview. “Years from now, people will be surprised to learn investors handed over billions to people they didn’t know and who faced little oversight.”