Bets against tether could shake the crypto market!

6/28/2022, 07:05 AM
Bets against tether could shake the crypto market!
Hedge funds are increasingly shorting Tether (USDT), the stablecoin pegged to the US dollar, amid concerns about the company's transparency and the recent collapse of another major stablecoin.
According to The Wall Street Journal, a growing number of hedge funds have opened USDT short positions with Genesis Global Trading Inc., a leading crypto brokerage for professional investors, in the past month.
Leon Marshall, Genesis' head of institutional sales, told WSJ that some investors have been shorting USDT for at least a year, but more hedge fund managers picked up interest in betting against Tether after the fall of Terra's algorithm stablecoin (UST) last month.
The UST collapse sent shockwaves through the stablecoin market and the broader crypto space, with billions wiped off the industry. The drama also affected Tether, and USDT briefly lost its peg on exchanges, falling to as low as $0.97 before recovering.
Marshall noted that hedge funds are shorting Tether because of the controversies surrounding Tether's assets and the Federal Reserve's decision to hike interest rates to combat inflation.
Tether CTO Paolo Ardoino responded on Twitter, saying that he had been "open about the attempts from some hedge funds that were trying to cause further panic on the market after TERRA/LUNA collapse." Read more about it on cryptopotato