Professional investors are increasingly betting against Tether (USDT-USD), the largest stablecoin by market cap, in the wake of a large-scale crypto downturn. “There has been a real spike in the interest from traditional hedge funds who are taking a look at tether and looking to short it,” said Leon Marshall, head of institutional sales at crypto brokerage Genesis Global Trading, in an interview, as reported by the Wall Street Journal on Monday. Marshall added that those U.S.- and European-based traditional hedge funds in the past month have shorted (betting on a decline in value) tether (USDT-USD) through Genesis, with a notional value worth "hundreds of millions" of dollars. The bearish speculation exacerbated after algorithmic stablecoin TerraUST (UST-USD) in May had lost its U.S. dollar peg, ultimately wiping out billions of dollars in value over a short time period. Billionaire investor Bill Ackman described Terra's algorithm as a crypto version of a
