Tether CTO Affirms Hedge Funds Tried to Short USDT
Genesis Global Trading, meanwhile, suggests that its clients have shorted Tether.
Key Takeaways
- Tether CTO Paolo Ardoino said today that various cryptocurrency firms have tried to short its stablecoin.
- Also today, Genesis Global Trading admitted that its hedge fund clients shorted Tether through its services.
- Tether seems to have withstood the challenge: USDT is valued at $1.00, on par with the U.S. dollar as intended.
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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.