The Kraken Exchange recently ridiculed reporters in a blog post about Bloomberg’s operation of the USDT and defended its business integrity.
Kraken said that journalist Defy Logic could not understand the basic market concepts of arbitrage, orders and currency pegs, and even more disturbing is that many journalists applauded this illogical statement.
The Kraken exchange has always been a combative currency in the world of cryptocurrencies. If the current rebuttal does not convince the reader of this fact, then it is known to understand the exchange and the oral argument of the New York Attorney General.
Previously, the New York Department of Justice launched the Virtual Market Integrity Questionnaire, which showed that Kraken was notoriously “leading” to cryptocurrency exchanges across the United States. Then, Jake Powell, CEO of Kraken Exchange, countered:
When I saw this questionnaire, the 34 points need to be completed in two weeks. I think these guys are simply abusing power, which is not respectful for our business and time!
For Kraken, this is a hellish week. Reporter Matt Leising is not only the main author of this incident, he also released a speculation about Nakamoto’s emergence through new works, and the spread of this speculation is simply viral.
Kraken said that Leising is unforgivable for Kraken’s manipulation of the USDT and that the community has also been affected. Leising has released nearly six harsh tweets and announced that tweets will continue to be sent until July 9.
For the Kraken Exchange, this behavior must be combated by Leising. Leising’s title to the article is also very eye-catching because of the mention: legislators are reading the content.
Looking at the order snapshot, you will find that there are more than $1 million in orders waiting to be purchased and sold at a price level of about $1. The results show that the price change of the USDT is usually very small.
After explaining that the price stability of USDT is based on the intrinsic design and arbitrage function of the token, the Kraken exchange turned to the impact on the entire market, indicating:
Although we are proud of our level of recognition in this industry, unfortunately we cannot claim to be an arbiter of USDT prices. It is highly probable that the USDT price is determined by the USDT of billions of dollars in market transactions such as BTC/USDT or ETH/USDT on other platforms. If a Bitcoin trader trades 6,350 USDTs on one platform and $6,350 on Kraken, then each USDT is logically close to $1. The USDT price level has reached hundreds of millions of dollars in the market, and in the past 24 hours, Kraken’s USDT/USD trading volume was only $1 million.
Kraken also welcomes users to further check their logic and public data.
The exchange said:
We take the allegations of manipulation of the USDT very seriously. We strive to create a platform that is open and fair to all users. Still, after reading the Bloomberg article, we were puzzled and questioned the type of manipulation that the article claimed. Rhetorically, it asks, “Is it hard to believe that the asset-backed stable currency can be traded, and the stability is so high?” As we discussed earlier, you only need to look at the order to understand why different sizes of transactions Will cause the price level to barely change.
As for the false transaction costs, Kraken said:
If you are looking for potentially false transactions in USDT, we recommend that you look elsewhere.
Having said that, it is unclear what harm may be caused by asset trading linked to the US dollar. In Kraken’s case, the USDT only trades with the US dollar, and the US dollar itself is a clearly manipulated asset.