Doom To Fail: Tether Shorts Pile In As Hedge Funds Seek To Profit From Crypto...
The crypto ecosystem is still dealing with the fallout caused by the collapse of the Terra ecosystem, the company behind stablecoin USDT, Tether, is being targeted by hedge funds. Confirmed by Paolo Ardoino, CTO at Tether and crypto exchange Bitfinex, via his Twitter account. Related Reading | Cardano Formed This Pattern On Its Chart, Where Is The Coin Headed? According to the rumors, hedge funds have been opening short positions on Tether (USDT) and have been actively seeking to create panic in the crypto industry to affect the stablecoin. Peg 1:1 to the value of the U.S. dollar,....
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Tether said the hedge funds that saw Terra’s collapse as a reason to short USDT have “a fundamental misunderstanding of both the cryptocurrency market and Tether." Tether, the issuer of Tether (USDT), says that hedge funds that attempted to short its stablecoin after Terra’s collapse in May are using a thesis that is “incredibly misinformed” and “flat out wrong.” In a blog post from July 28, Tether pointed to a June 28 Wall Street Journal podcast in which host Luke Vargas and guest Caitlin McCabe discussed the bearish crypto market and concerns over Tether’s backing assets as the reasons....
Newly surfaced reports revealed that some hedge funds are now shorting Tether USDT. A Monday report from the Wall Street Journal (WSJ) stated several opened short positions on USDT. According to the report, a leading crypto brokerage, Genesis Global Trading Inc., held some notional values worth hundreds of millions for USDT shorting. The firm is […]
Paolo Ardoino alleged some hedge funds are trying to create pressure “in the billions” to “harm Tether liquidity” so that they can eventually buy back tokens at a much lower price. Tether chief technology officer Paolo Ardoino has confirmed that the stablecoin has been the subject of a “coordinated attack” by hedge funds looking to short sell the dollar-pegged crypto asset. Speaking to his 151,600 Twitter followers on Monday, June 27, the Tether executive was responding to reports that hedge funds have been borrowing millions in loans to short USDT since the collapse of Terra (LUNA) in....