Paolo Ardoino, CTO of Tether, affirmed today that hedge funds have been attempting to short the USDT stablecoin.
CTO Says Funds Failed to Short Tether
Ardoino wrote on Jun. 27 that he is “open about… attempts from some hedge funds” to short Tether (USDT).
He explained that those hedge funds tried to achieve their goal by utilizing perpetual contracts, by short-selling on spot markets, and by creating imbalances in DeFi pools.
If those efforts were successful, Ardoino says, those hedge funds would have created billions of dollars worth of pressure before buying back USDT at a considerably lower price.
Having failed to destabilize Tether, Ardoino says that those entities will need to buy back the Tether that they borrowed at the coin’s proper value of $1.00 or face bankruptcy.
Ardoino argued that this month’s liquidity crisis shows that lenders and hedge funds are “taking risks that Tether never touched even with a ten-foot pole.” Though Ardoino did not name any companies, Celsius and...
Your content is great. However, if any of the content contained herein violates any rights of yours, including those of copyright, please contact us immediately by e-mail at media[@]kissrpr.com.
INN caught up with cryptocurrency investment expert Dan Hoover to review the current landscape and where the market may be heading. The cryptocurrency investment marketplace has gone through severa...