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Tuesday, August 9, 2022

Tether CTO Refutes Stablecoin

Tether chief technology officer Paolo Ardoino has confirmed that the stablecoin Tether (USDT) has been the subject of a “coordinated attack” by hedge funds looking to short-sell the United States dollar-pegged crypto asset. 

Speaking to his 151,600 Twitter followers on Monday, the Tether executive was responding to reports that hedge funds have been borrowing millions in loans to short USDT since the collapse of Terra in May.

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He alleged that hedge funds have been trying to create pressure “in the billions” to “harm Tether liquidity” with the aim of eventually buying back tokens at a much lower price.

Tether Chief Levied Accusations About Stablecoins

Ardoino levied accusations that some hedge funds have believed and helped spread FUD — fear, uncertainty, and doubt — about the stablecoin.

Notions that it is not 100% backed, is issuing tokens from “thin air,” has significant exposure to distressed companies and Chinese commercial paper and other narratives have been spread by its competitors over “troll networks,” he said.

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As part of a 12-part Twitter thread refuting these rumors and slamming FUD spreaders, Ardoino argued that the company has been collaborating with regulators and has increased transparency efforts, as well as noting its recent commitment to phase out its commercial paper exposure:

“Despite all the public 3rd party attestations, our collaboration with regulators, our increased transparency efforts, our commitment to phase out CP exposure and move into US Treasuries, our settlements, … they kept thinking and suggesting that we, Tether, are the bad guys.”

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