Advertisement
Tether's CTO responded to reports that the hedge fund had spent more than hundreds of millions of dollars betting on USDT.
Paolo Ardoino, chief technology officer (CTO) of Bitfinex and stablecoin Tether (USDT), has responded to reports that traditional hedge funds are joining traders in shorting USDT.
Bet on hedge funds with USDT
On Monday, the Wall Street Journal (WSJ) reported that a lot of hedge funds opened USDT short positions with a nominal value of millions of dollars along with cryptocurrency brokerage Genesis Global Trading for professional investors last month.
In an interview with the WSJ, Genesis' head of sales said, "Interest in traditional hedge funds has had a real increase, those people are looking at Tether and looking to shorten it." The report further notes that for at least a year, investors have been short-selling USDT but many fund managers have been interested in fighting Tether by betting after the collapse of the Terra algorithm stablecoin (UST).
One of the largest stablecoins on the market is Terra USD with an algorithmically pegged value with a ratio of 1:1 to the U.S. dollar. However, in May, the UST devalued the dollar and was down 99% despite the Terra team's attempts to protect the peg, including emptying all of its data.
This has affected Tether, which lost ground on exchanges for a short period of time, falling to as low as $0.97 before recovering.
Stablecoins are fully supported by Tether
Marshall has noted that hedge funds are short-selling Tether because of the controversy surrounding Terra's assets and the Federal Reserve's decision to raise interest rates for the purpose of short-term inflation.
Last month, a report was commissioned by Terra to confirm that its stablecoins are fully supported including cash, liquid assets and other investments.
The company's total assets are worth at least $82.4 billion. Of which, the total liabilities including issued stablecoins amounted to $82.2 billion.
Feedback from Tether's CTO
Ardoino took to Twitter shortly after the WSJ report emerged that he had made public efforts from several hedge funds trying to cause panic in the market after the Terra/LUNA market crash.
According to Tether, it appears that the move resembles a coordinated attack. Hedge funds spread FUD about the company and their stablecoins, including arguments that USDT does not support 100% or that the company issues tokens from the market.
Ardoino believes hedge funds have borrowed billions of dollars, eventually having to buy stablecoins. Since Terra's failure, Tether has revealed more about two other stable currencies tied to the Mexican peso and the pound. This will help the company increase its total stablecoin count to five.
>> See also: The easiest Coin Ex Registration Guide to understand
—
Telegram: https://t.me/+XqnDmxy-bz0wMTE1
Group: https://www.facebook.com/groups/655607162536305
Fanpage: https://www.facebook.com/WikiBinancecom
Twitter: https://twitter.com/wikibinancevn
