According to Paolo Ardoino, head technology director of Tether, fund managers have launched an “organized attack” on the Tokens stablecoin to short-sell it.
A Tether CEO addressed his 151,600 Twitter fans on Monday, reacting to news that, following Terra’s demise in May, hedge funders had been taking out massive loans to sell USDT.
He said that hedge firms were exerting pressure “in the billions” to “damage Tether liquidity” to purchase back assets at a much cheaper price later on.
Tether Chief Levied Accusations About Stablecoins
Some hedge funds, according to Ardoino, have bought into and promoted “FUD” about just the stablecoin, which stands for “fear, uncertainty, and doubt.”
Opponents have used “troll nets” to spread false information, such that it isn’t 100% supported, that it is creating tokens out of “thin air,” claiming that it has a large exposure to troubled enterprises and Chinese commercial debt and other similar stories.
In a 12-part Twitter post aimed at dispelling these allegations, Ardoino criticized “FUD spreaders” and noted that the firm had just pledged to eliminate its asset-backed commercial exposure and was working with authorities to boost transparency.
Even after “public 3rd party certifications,” “our participation with authorities,” “our improved transparency efforts,” “our pledge to phase down CP risk and move into The us Treasuries,” and “our settlements,” “they maintained thinking and indicating that we, Tether, have become the bad people,” he said.