- Paolo Ardoino said hedge funds are shorting USDT with the hopes of recreating TerraUSD’s demise.
- He asserts USDT is 100% backed by the company’s US dollar reserves.
- Leading US dollar-based stablecoins are still changing hands at $1 per piece.
It appears the stablecoin crucible has still not ended with TerraUSD (UST), as Tether CEO Paolo Ardoino revealed that Tether USD (USDT) is now the next target of hedge funds.
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In the thread, Ardoino mentioned USDT/USD perpetual futures as one of the “tool” for the attack. Other strategies include short-selling of the borrowed USDT in the spot market, as well as unbalancing of DeFi pools.
As for the reason for the attack, Ardoino said that these hedge funds, which he did not name, believe that USDT is not 100% backed. The company has always dismissed this allegation.
Ardoino remarked:
But as we always said, Tether had/has in fact >= 100% of the backing, never failed a redemption and all USDT are redeemed at $1. In 48 hours Tether processed 7B in redemptions, averaging 10% of our total assets, something almost impossible even for banking institutions.
He also clapped back at those who heavily criticized the stablecoin, saying that they have been deluded by people who he claims to be wolves in sheep’s clothing.
“And while the FUD was focusing on Tether, during the last 2 months of crypto devastation,” Ardoino quipped, “it was discovered that many lenders and hedge funds considered the holy heroes of our industry were actually taking risks that Tether never touched even with a ten-foot pole.”
At the moment, leading US dollar-based stablecoins USDT, USD Coin (USDC), Binance USD (BUSD), and Dai (DAI) are changing hands at $1 per piece.
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