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- Tether CTO signifies the current short selling in the market through a lengthy Twitter thread.
- He alleged that the hedge fund entities are attempting to put pressure in the billions to harm Tether’s liquidity.
- Short selling is when the investor sells an asset right after borrowing it, just to buy it later on with a minimal price.
Paolo Ardoino, the Chief Technology Officer (CTO) at Tether, has recently confirmed that Tether (USDT), the stablecoin, has been subjected to a coordinated attack by hedge funds intending to short sell the USD-pegged digital asset.
The Tether CTO spoke to his around 1.5 lakh followers recently. He was expressing himself on the reports that the hedge funds have been borrowing millions in loans in order to short USDT after the Terra meltdown last month.
Ardoino alleged that the hedge funds entities have been attempting to create pressure in the billions to harm Tether’s liquidity, focusing on buying back the tokens at a minimal price later on. He asserted that few of them have believed and facilitated the spread of FUD (Fear, Uncertainty, and Doubt) about the stablecoin.
He expressed his thoughts in a lengthy Twitter thread, refuted the rumors, called out on FUD spreaders, and argued that the company has been partnering with regulators. And that it has increased its transparency efforts and also highlighted its latest vow to phase out its commercial paper exposure.
Furthermore, he argued that Tether had not failed a redemption even once, and in 48 hours, the company had processed 7 Billion in transactions, averaging 10% of its total assets, which is something near to impossible for even the banking entities.
Seemingly, the CTO’s comments might not impact the short-sellers as such; they hope to profit from a possible decrease in the crypto’s price. As of writing, it is standing below the peg at 0.9986.
A report by the Wall Street Journal highlighted the head of institutional sales at Genesis, Leon Marshall’s words that there has been a surge in trades to short Tether via its brokerage platform, specifically over the last month.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
