(Cryptopotato) Paolo Ardoino says Tether is the most proven stablecoin after reports emerged that hedge funds were engaging in short trades.
The comments by Ardoino came after reports emerged that several hedge funds were opening short positions on USDT. The reports indicated that hedge funds were opening short positions in hundreds of millions of dollars in notional value.
Leon Marshall, Genesis’ head of institutional sales, said there was a real rise in interest among traditional hedge funds looking to short Tether.
Fund managers are reportedly betting against Tether after the collapse of Terra’s algorithm stablecoin UST last month. USDT lost its peg against the dollar temporarily after the collapse of UST.
Genesis says that hedge funds are shorting Tether following the controversies of Tether’s assets and the decision by the Federal Reserve to hike rates to tame rising costs.
Ardoino is now defending Tether, saying that he is open to the attempts by some hedge funds to cause panic in the market after the collapse of UST and LUNA. He termed the moves coordinated attacks, with unverified claims that USDT is not fully backed.
The Tether CTO says Tether is a proven stablecoin, pointing out that the hedge funds shorting will eventually have to buy it back.
BTCUSD is up +2.08%.
