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June 27, 2022

Hedge Funds Dump USDT? Tether’s CTO addresses rumors

Earlier this week, Tether Chief Technology Officer, Paolo Ardoino, addressed what he termed “open and concerted assaults” by certain hedge funds against USDT. TERRA/demise LUNA’s has sparked a new round of fear-mongering, according to him.

Recently, USDT’s status as the leading dollar-pegged stablecoin was put to the test. There has been a lot of speculation in the crypto community about recent events, including a new preference for USDC and USDT’s constant depeg.

“Open assaults” on USDT are being done by hedge funds that have conspired to destroy USDT’s liquidity by shorting substantially and then re-purchasing at a lower price, Paolo Ardoino claims in an extensive Twitter thread.

Tether is not or was not 100 percent supported, and tether has or previously had exposure to Evergrande and 85 percent exposure to Chinese CP, among the FUD, pushed by hedge funds, according to him.

According to him, the attackers have not stopped despite all the openness tether has shown and their “commitments to phase out exposure to CP to shift into U.S. Treasuries.”

When it comes to Tether’s commercial paper exposure, Ardoino said that it has been cut from $45 billion to only $8.4 billion. In the wake of recent challenges for hedge funds, he repeated Tether’s 100% support and referred to them as “holy heroes” in the industry.

Co-founder of Tether and BlockV CEO Reeve Collins spoke with CNBC on the young DeFi market, adding that difficulties are to be expected when a new industry emerges.

A recent rescue of several failing crypto businesses by FTX was also brought up by the speaker.

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While it’s nice to see that FTX has taken the initiative, they have the financial wherewithal to step in and take the company to the next level, even if they had an excellent audience and a great product for a while.