Tether has survived the crypto winter.  Bitcoin in the past week recorded a bullish reversal from its low at $6,750 to $7,800 in just two days.  The bulls were not able to defend the new region.  The price pulled back to $7,230 during the early hours.

Several of the Altcoins are in a disappointing trend, while others are recording slight gains.  Tether (USDT), currently the fourth largest cryptocurrency in terms of market capitalization, has been doing reasonably well versus several other Altcoins. Being a stable coin, the market cap of the Tether will increase only when a new stable coin is released.

One of the tweets read:  “5 times the entire Tether supply was traded yesterday Mati Greenspan takes aim at Coin Market Cap figures. CMC says they have a solution.”

Mati Greenspan is not convinced about the current scenario.  He opines that a lot of wash trading is happening to the extent of things getting out of hand.  He published a screenshot, which showed that in 24 hours, $19.341 billion worth of USDT (Tether) had been traded per CMC’s figures. This is about 470% of the overall supply of USDT in existence. Only 13% of the overall Bitcoin supply has changed hands.  This is a massive exaggeration.

Faking trade volumes is done to inflate the price artificially.  CMC has proposed a new metric called ‘liquidity’ to combat wash trading. Since crypto is decentralized, and the different cryptocurrency exchanges operate in various jurisdictions with varying regulations and sometimes no regulation at all.  Therefore the idea of volume to identify liquidity does not work well in the crypto market.

Higher liquidity indicates lots of counterparties to trade with and less slippage.  A larger order in this scenario affects the price.  Encouraging exchanges to have more liquidity is good for everyone.  The liquidity metric, for now, is very complex.

Greenspan opines that “The liquidity metric won’t work though,” and he further clarified that bad actors would learn their way around the algorithm, and things will get back to where it all started.  Coming down on fake traders in a hard way is one solution that Greenspan thinks will work.

However, Dan Matuszewski, now principal and co-founder of CMS Holdings, stated, “I say this as someone who created and redeemed billions of tether over the course of my life and specifically created it in 2017,” further clarified “The idea of tethers driving the price of bitcoin significantly higher is “not true whatsoever.”