Tether’s Chief Technology Officer Paolo Ardoino spoke today about the ‘open and coordinated’ attacks on USDT by some hedge funds. He explained that this was done in an attempt to spread another wave of FUD following the collapse of Terra (LUNA).
Paolo Ardoino: Hedge funds attack USDT after Terra (LUNA)
As you may remember from the news of Kriptokoin.com, Terra’s stablecoin UST lost its dollar peg and crashed. In this crash, the Terra ecosystem’s token, LUNA, was also damaged to such an extent that it was wiped out along with UST. Now, USDT, Tether’s number one stablecoin pegged to the US dollar, has passed the test. Recent developments, including a new preference for the continued depeg of USDC and USDT, have raised eyebrows within the crypto community.
Paolo Ardoino shared a long thread on the subject on Twitter. Ardoino says hedge funds are collaborating to hurt USDT’s liquidity. He also claims that these hedge funds have carried out “open attacks” on USDT. He then explains the dynamics behind the attacks. In addition, he says they repurchased at a lower price after the attacks. In this context, Ardoino makes the following statement:
Among the FUD spread by hedge funds, firstly, Tether was not 100% backed or backed. Meanwhile, Tether’s Evergrande position or previous Chinese CP position is 85%.
Ardoino says attackers won’t be successful
Also, Ardoino notes that despite everything Tether did to show transparency, the attackers did not give up on their attacks. In addition, he talks about commitments to phase out CP positions to move into US treasuries.
Ardoino says Tether’s commercial paper exposure has dropped from $45 billion to $8.4 billion. It also reiterates Tether’s 100% support. In addition, he has been hitting hard-hit hedge funds lately, saying he’s been considered ‘holy heroes’ in the industry.
FTX’s bailout of crypto companies is good for the industry
Reeve Collins, Tether co-founder and current CEO of BlockV, gave a recent interview to CNBC. Collins discussed the burgeoning DeFi industry and said that when an industry sprouts, problems are normal. He also continued by addressing FTX’s recent bailout of some troubled crypto companies. In this context, Collins said:
It’s great that FTX is taking such a step forward. Because they really have a war chest that they will say okay. You guys had a great audience. You’ve had a great product for a while. However, it didn’t work. Let’s step in and get you there. So to the next level.
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