Bitcoin

Tether CTO Highlights a Coordinated Attack by Hedge Funds to Short USDT, Reiterates the Stablecoin is 100% Backed

Abstract:

  • Tether’s CTO, Paolo Ardoino, has recognized a coordinated assault on USDT by conventional hedge funds shorting the stablecoin.
  • Based on Mr. Ardoino, the assault includes a brand new wave of FUD, trolling, clowns, and extra.
  • Mr. Ardoino has reiterated that Tether is 100% backed by reserves.
  • He additionally added that Tether is phasing out its reserve publicity of business paper in place of US treasuries.

Tether’s and Bitfinex’s CTO, Paolo Ardoino, has recognized a coordinated assault on USDT by conventional hedge funds shorting the stablecoin. The Tether CTO factors out, via a twelve-part Twitter thread that may be discovered under, that the assaults contain a brand new wave of FUD, troll armies, clowns, and extra.

Conventional Hedge Funds are Betting In opposition to Tether – Wall Road Journal.

Mr. Ardoino was responding to a Wall Road Journal report declaring that the aforementioned hedge funds ‘have been ramping up their bets towards Tether’ via Genesis World Buying and selling Inc., one of many largest crypto brokerages for skilled buyers.

The Wall Road Journal Report explains that the quick sellers have been betting towards Tether for the final 12 months, with their curiosity growing after TeraUSD’s (UST) collapse. The identical quick sellers consider that ‘tether’s commercial-paper holdings are backed by debt-ridden Chinese language property builders.’

USDT is 100% Backed – Tether CTO.

It’s with this background that Tether’s CTO has identified within the Twitter thread that the identical hedge funds consider Tether isn’t 100% backed, that its had publicity to Evergrande and that it has 85% publicity to Chinese language business paper.

Moreover, Mr. Ardoino acknowledged that the hedge funds additionally consider Tether is ‘issued from skinny air’ and that ‘lenders have been borrowing from Tether with out over-collateralization.’

Mr. Ardoino reiterates that the USDT was 100% backed and Tether has remained clear through the years. The corporate plans to section out its reserves within the type of business paper and exchange them fully with US Treasuries. He stated:

Regardless of all the general public third occasion attestations, our collaboration with regulators, our elevated transparency efforts, our dedication to section out CP publicity and transfer into US Treasuries, our settlements, … they saved pondering and suggesting that we, Tether, are the dangerous guys.

However as we at all times stated, Tether had/has in truth >= 100% of the backing, by no means failed a redemption and all USDt are redeemed at 1$.

Tether Has Regularly Honored Redemptions of USDT to USD

Tether’s CTO additionally highlighted that the corporate continues to honor redemptions of USDT into USD even through the hardest of occasions within the crypto markets. He stated:

In 48 hours Tether processed 7B in redemptions, averaging 10% of our whole property, one thing nearly unimaginable even for banking establishments.

In a couple of month Tether processed 16B in redemptions (~19% of our whole reserves), once more proving that our operations, portfolio, banking infrastructure and workforce are stable and battle examined.

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