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HomeCryptoStablecoin giant USDT under attack? Concern is growing around Tether

Stablecoin giant USDT under attack? Concern is growing around Tether

Market manipulations on USDT – The resounding disaster of Terra (LUNA) is still particularly vivid in the memory of the cryptosphere. The stablecoin UST indeed could not be saved despite the squandering of $3 billion worth of bitcoins (BTC). Short sellers would now love to rewrite the same story, but this time with the most important of the dollar-pegged stablecoins: theUSDT of Tether.

The hedge funds bet down against USDT

Briefly recall that the positions of short sales (shorts) consist in speculating downwards on an asset, by “selling” it without even owning it. A kind ofloan/creditwhich this type of traders then hope to reimbursebuying the asset in question cheaper.

But if asset prices only increasethese speculators find themselves having to buy back their credit/asset much more expensive than they have already sold it. That’s how large hedge funds were brought to their knees by the group of WallStreetBetsin the case of shares GameStop (GME).

This June 27, the Wall Street Journal reveals that a short selling attack was (still is?) organized against the stablecoin USDT. According to the article, hedge funds have taken positions shorts against Tether’s cryptocurrency. To do this, they seem to have used the platform for professional investors Genesis Global Trading.

“These transactions of [ventes à découvert] represent hundreds of millions of dollars in notional value. »

Leon Marshall, Head of Institutional Sales at Genesis

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Tether CTO Confirms Speculative Attack

Paolo Ardoinochief technical officer (CTO) of Tether and Bitfinex, wanted to to confirm these bearish manipulations against the most valuable stablecoin in the crypto market – in the $67 billion at the time of this writing.

“I spoke openly about the attempts of some hedge funds, which tried to cause further panic in the market after the collapse of TERRA/LUNA. From the start, it really seemed like a coordinated attack, with a new wave of FUD, armies of trolls and other clowns, etc. »

Twitter account @paoloardoino

According to Paolo Ardoino, the hedge funds did want create downward pressure sufficient “to affect liquidity” of the USDT. To then buy it back at a much lower price.

Despite a few minor scares in the aftermath of the Terra disaster, Tether managed to never default in its guarantee to exchange 1 USDT for 1 dollar (and vice versa) on the company’s exchange portal. Hedge funds have so far broken teeth to try to shortest » Tether’s stablecoin. For the sake of the crypto market, let’s hope it continues!

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