Today, Paolo Ardoino, Tether’s Chief Technology Officer, responded to what he described as “public and planned” attacks against USDT by several hedge funds. He stated that this might be done to propagate more FUD in the aftermath of TERRA/LUNA’s demise.
Hedge Funds Are Sacred Heroes?
USDT’s claim as the most stable coin linked to the US dollar has recently been questioned. Recent developments, such as a new priority for USDC and USDT’s continual depeg, have aroused suspicions in the cryptocurrency world.
Paolo Ardoino describes the mechanics of the “public attacks” on USDT in a lengthy conversation on Twitter, claiming that hedge funds have worked to destroy USDT liquidity by short-selling extensively and further re-purchasing at a discounted cost.
He further stated that despite tether having tried to demonstrate clarity and its “responsibilities to scale down CP risk and migrate into US treasuries,” the hackers have not stopped their assaults yet.
Tether’s treasury bills commitment has been decreased from $45 billion to $8.4 billion, according to Ardoino. He underlined Tether’s continued support and made a dig at hedge funds that have previously struggled, claiming they are seen as “sacred heroes” in the business.
Challenges Are Inevitable For Any New Industry
In an interview with CNBC, Reeve Collins, co-founder of Tether and present CEO of BlockV, described the budding DeFi market, adding that challenges are inevitable whenever a new industry emerges.
He also addressed FTX’s recent rescue of certain struggling crypto startups. Reeve is seen appreciating FTX for their ability to come forward and say Alright, you’ll have a wonderful crowd and a terrific product for a period. However, it didn’t really work out, so let us come in and bring you towards the next stage.