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NewsBTC 2022-06-27 16:46:13

Doom To Fail: Tether Shorts Pile In As Hedge Funds Seek To Profit From Crypto Winter

The crypto ecosystem is still dealing with the fallout caused by the collapse of the Terra ecosystem, the company behind stablecoin USDT, Tether, is being targeted by hedge funds. Confirmed by Paolo Ardoino, CTO at Tether and crypto exchange Bitfinex, via his Twitter account. Related Reading | Cardano Formed This Pattern On Its Chart, Where Is The Coin Headed? According to the rumors, hedge funds have been opening short positions on Tether (USDT) and have been actively seeking to create panic in the crypto industry to affect the stablecoin. Peg 1:1 to the value of the U.S. dollar, these entities might be trying to replicate the events that crash LUNA and UST. These digital assets were at the epicenter of the Terra ecosystem, the latter operated as an algorithmic stablecoin pegged to the U.S. dollars until it crashed losing over 90% of its value. According to Ardoino, hedge funds might try to profit by creating the conditions for a similar crash with USDT: I have been open about the attempts from some hedge funds that were trying to cause further panic on the market after TERRA/LUNA collapse. It really seemed from the beginning a coordinated attack, with a new wave of FUD, troll armies, clowns etc. The outcome would be different, as Tether’s CTO explained, these hedge funds would allegedly try to trigger a massive capital outflow from the stablecoin and destabilize its price. Ultimately, if the price of USDT drops, the sho...

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