Tether CTO Paolo Ardoino has identified a coordinated attack on USDT by traditional hedge funds shorting the stablecoin. According to him, this is being done in a bid to spread another wave of FUD following the collapse of TERRA/LUNA. Tether CTO Clarifies on WSJ Report In a Twitter thread posted on June 27th, Paolo Ardoino clarified a Wall Street Journal report that highlighted that traditional hedge funds are trying to short tether through one of the largest crypto brokerages, Genesi Global Trading. 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 — Paolo Ardoino (@paoloardoino) June 27, 2022 According to him, the same hedge funds believe Tether is not 100% backed and that it had exposure to Evergrande and 85% exposure to Chinese commercial paper. Ardoino also stated that the hedge funds also believe Tether is “issued from thin air” and that “lenders were borrowing from Tether without over-collateralization.” 4/– they believe/d that Tether has/had issued tokens from thin air– they believed that lenders were borrowing from Tether without over-collateralization– they believed in all the narratives that some competitors were spreading via coordinated troll networks — Paolo Ardoino (@paoloardoino) June 27, 2022...
