Tether Claims That USDT Short-Selling After Terra’s Fall Is “Flat Out Wrong”
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 Says Crypto Hedge Funds Made a Mistake in Selling USDT
The issuer of Tether (USDT), says that hedge funds attempting to short its stablecoin after Terra’s collapse in May are using an “extremely misleading” and “completely false” thesis.
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 crypto market. The drop in price and concerns about Tether’s backing assets were the reason why USDT was sold short.
“The simple fact that hedge funds view Terra’s collapse as a constructive thesis to short USDT represents the asymmetric knowledge gap between cryptocurrency market participants and entities in the traditional finance space.”
In early May, UST lost its peg in dramatic fashion and pulled down the price of Terra ecosystem’s native token LUNA – now known as LUNC – to fractions of a cent from over $60.
In that time, Tether experienced a 21% drop in market cap since May 11 from $85.3 billion, though it is still the largest stablecoin in the crypto market today with a $65.8 billion market cap according to CoinGecko.
In late June, Tether chief technology officer Paolo Ardoino confirmed that USDT had become the subject of a “coordinated attack” by hedge funds looking to short-sell the crypto asset.
He alleged that hedge funds have been trying to create pressure “in the billions” to “harm Tether liquidity” with the aim of eventually buying back tokens at a much lower price.
Tether in its most recent blog post noted that several misconceptions about its holdings have been the basis of this short-selling movement — including Tether holding significant Chinese commercial paper or Evergrande debt, that USDT is created “from thin air,” or that Tether has issued unsecured loans.
Its last financial disclosure on March 31 revealed that 85.64% of Tether’s financial backing is in cash and cash equivalents, including commercial paper.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Tether Claims That USDT Short-Selling After Terra’s Fall Is “Flat Out Wrong”
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 Says Crypto Hedge Funds Made a Mistake in Selling USDT
The issuer of Tether (USDT), says that hedge funds attempting to short its stablecoin after Terra’s collapse in May are using an “extremely misleading” and “completely false” thesis.
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 crypto market. The drop in price and concerns about Tether’s backing assets were the reason why USDT was sold short.
“The simple fact that hedge funds view Terra’s collapse as a constructive thesis to short USDT represents the asymmetric knowledge gap between cryptocurrency market participants and entities in the traditional finance space.”
In early May, UST lost its peg in dramatic fashion and pulled down the price of Terra ecosystem’s native token LUNA – now known as LUNC – to fractions of a cent from over $60.
In that time, Tether experienced a 21% drop in market cap since May 11 from $85.3 billion, though it is still the largest stablecoin in the crypto market today with a $65.8 billion market cap according to CoinGecko.
In late June, Tether chief technology officer Paolo Ardoino confirmed that USDT had become the subject of a “coordinated attack” by hedge funds looking to short-sell the crypto asset.
He alleged that hedge funds have been trying to create pressure “in the billions” to “harm Tether liquidity” with the aim of eventually buying back tokens at a much lower price.
Tether in its most recent blog post noted that several misconceptions about its holdings have been the basis of this short-selling movement — including Tether holding significant Chinese commercial paper or Evergrande debt, that USDT is created “from thin air,” or that Tether has issued unsecured loans.
Its last financial disclosure on March 31 revealed that 85.64% of Tether’s financial backing is in cash and cash equivalents, including commercial paper.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
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