Kraken to Blame Bloomberg in BTC Futures Manipulation

Exchange's team posted a reply-article to recent Bloomberg's paper
02 July 2018   932

The Kraken Crypto Currency Exchange responded to Bloomberg's recent publication, which said that it uses USDT tokens to perform questionable transactions.

Four Bloomberg reporters wrote that the USDT market on Kraken shows disturbing signals, which should be checked by regulators. Kraken, in turn, said that Bloomberg's findings were devoid of logic, and blamed "lemmings journalists" for helping to spread the dubious material. The exchange also suggested that Bloomberg could have its own motives to write such an article.

If we are to take up our pitchforks against market manipulation, guide your torches toward this illumination: the Bloomberg News piece was published on June 29th, the last business day of trading for Q2, and expiration date of numerous futures contracts.  It raises red flags.
 

Kraken's Article

The exchange, apparently, refers to futures traded on the CME. Transactions on them ended on June 29, and the calculation will take place on July 5. Thus, Bloomberg's material casts a shadow on bitcoin, and its publication on this day could be beneficial to those who took short positions in futures, suggests Kraken.

In its article, Bloomberg states that transactions of a small amount sometimes have a greater impact on the price of USDT than large transactions, and draws attention to a large number of orders of a certain size that could hardly have been placed by people.

Unlike the price of Bitcoin, which fluctuates in tandem with shifts in trading volume, the price of Tether is inconsistently changed by large and small orders to buy or sell the coin.
 

Bloomberg's Article

In response, Kraken writes that USDT tokens are provided with US dollars at a rate of 1 to 1, which distinguishes them from bitcoin, the price of which is determined by supply and demand.

This level of USDT price discovery happens on markets with hundreds of millions of dollars of volume, not on Kraken’s USDT/USD market, which has currently traded less than $1 million in the last 24 hours.
 

Kraken's Article

To answer Bloomberg's question about why "trades at a volume of 75 were by far the most common, and made up 7.9% of total trading activity on Tether between May 1–June 22" fall on orders worth 13076,389 USDT, Kraken had to contact the trader who placed them. According to him, this meaning "was chosen by chance".

Kraken to Raise $13.5 Thru BnkToTheFuture

2,263 people with an average investment of $100.000 took part in crownfunding campaign, which became record for the platform
25 June 2019   478

The US Bitcoin exchange Kraken raised $ 13.5 million through the sale of private equity through the investment platform BnkToTheFuture (BF). This was the most successful round of financing from individual investors in the history of BF, reports CoinDesk.

So, in total Kraken crowdfunding campaign was attended by 2,263 people with an average investment of $ 100 thousand. The funds raised are probably used by the exchange to make new acquisitions.

It is noteworthy that BF created a subsidiary, which became the recipient of individual investments in order to subsequently act as a single investor for Kraken. This allowed the exchange to bypass the requirements of the US Securities and Exchange Act and not to go to an IPO.

It is noteworthy that Kraken initially intended to raise $ 10.2 million, but the demand for its shares turned out to be higher and the exchange extended the fundraising period.

According to Kraken's own estimates, its capitalization is $ 4 billion.

Earlier this year, the exchange also acquired Crypto Facilities, a trading platform for cryptocurrency derivatives, expanding the range of services offered.