- CryptoQuant has stepped in to address doubts about Tether’s Bitcoin holdings.
- Their quarterly attestation report has prompted Tether’s reappearance in the spotlight.
- CryptoQuant has subtly indicated the possibility of additional Bitcoin wallets.
Prominent on-chain data and analytics provider, CryptoQuant, has taken to Twitter to address doubts about Tether’s standing as the eleventh-largest Bitcoin holder. To counteract this week’s FUD, the company has harnessed the strength of its on-chain data.
Skepticism Rises as Tether Reveals $1.6 Billion Bitcoin Stockpile
Drawing attention to Tether’s quarterly report, CryptoQuant revealed a hefty stockpile of around $1.6 billion of Bitcoin. This financial trove catapulted the issuer of the stablecoin into a prominent position among the bigwig holders of the cryptocurrency.
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Nonetheless, a meticulous review of the Tether Bitcoin wallet on Twitter surfaced apparent inconsistencies when compared to the official disclosure. A significant observation revolved around the absence of Bitcoin holdings in Tether’s Q4 report from last year, contrasting the current accumulation trend in the wallet.
In response to these uncertainties, CryptoQuant suggests that Tether may have additional Bitcoin wallets beyond the one under scrutiny. The analytics firm underscores the trustworthiness of on-chain data to verify news during times of skepticism.
CryptoQuant Reveals Major Blind Spot in Tracking Crypto Whales
In the same breath, CryptoQuant spotlights a notable blind spot when utilizing on-chain data to track the actions of crypto whales. While the term “whales” traditionally signifies entities holding 1,000 Bitcoins or more, this categorization has a potential drawback, according to the firm.
This cautionary alert underscores the potential oversight of unique characteristics that might not neatly align with the established definition of a ‘whale.’ A pertinent example lies in the misclassification of wallets on exchanges as whales when they could, in reality, be internal wallets.
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Noteworthy periods from May to July showcased substantial movements ranging between 1,000 to 10,000 Bitcoins and beyond. The firm points out that there was a notable surge in exchange withdrawals. However, this upswing in activity was primarily linked to transfers between wallets within the Robinhood exchange.
On the Flipside
- Tether’s quarterly report, as demonstrated by CryptoQuant, might offer an incomplete depiction of its Bitcoin holdings due to the exclusion of off-chain activities, which could result in the omission of a noteworthy market segment.
- The scrutiny of Tether’s Bitcoin wallet on Twitter could be seen as a coordinated attempt to create Fud for a potential to buy in at lower prices rather than a purely organic questioning of the disclosed data.
Why This Matters
The emergence of discrepancies within Tether’s Bitcoin holdings underscores the delicate balance between transparency and interpretation in the crypto realm. Ensuring accurate classification of ‘whales’ and their activities not only refines our understanding of market dynamics but also safeguards against misinformation.
To learn more about Tether’s recent treasury holdings in Q2, delve into the details here:
Tether Has More Treasury Holdings Than UAE, Australia, and Spain
To understand how Ripple is gearing up to respond to the SEC and its appeal request, read more here:
