Tether CTO refutes stablecoin FUD as short-sellers circle
Tether chief technology officer Paolo Ardoino has confirmed that the stablecoin has been the subject of a “coordinated attack” by hedge funds looking to short sell the dollar-pegged crypto asset.
Speaking to his 151,600 Twitter followers on Monday, June 27, the Tether executive was responding to reports that hedge funds have been borrowing millions in loans to short USDT since the collapse of Terra (LUNA) in May.
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.
The CTO levied accusations that some hedge funds have believed and help spread “FUD” (fear, uncertainty, and doubt) about the stablecoin.
Notions that it is not 100% backed, is issuing tokens from “thin air,” has significant exposure to distressed companies and Chinese commercial paper, and other narratives have been spread by its competitors over “troll networks,” he said.
1/I have been open about the attempts from some hedge funds that were trying to cause further panic on the market after TERRA/LUNA collapse.It really seemed from the beginning a coordinated attack, with a new wave of FUD, troll armies, clowns etc. https://t.co/hhcsgHV1Ow
As part of a 12-part Twitter thread refuting these rumors and slamming FUD spreaders, Ardoino argued that the company has been collaborating with regulators and has increased transparency efforts, as well as noting its recent commitment to phase out its commercial paper exposure.
He argued that Tether has “never failed a redemption,” adding that in just the last 48 hours, Tether has redeemed around 10% of its total assets, which he said is “something almost impossible even for banking institutions.”
He also
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