Tether news: Tether claimed that hedge funds who used Terra’s demise as justification for shorting USDT “fundamentally misunderstand both the cryptocurrency market and Tether.”
Tether, the company that created the Tether (USDT) stablecoin, claims that hedge funds that tried to short its stablecoin following Terra’s demise in May are doing so on the basis of a thesis that is “incredibly misinformed” and “flat out wrong.”
In a blog post from July 28, Tether cited a Wall Street Journal podcast from June 28 in which the host, Luke Vargas, and the guest, Caitlin McCabe, talked about the bearish cryptocurrency market and worries about the assets that support Tether as the factors driving short sellers’ interest in Tether.
The hedge funds that used Terra’s demise as justification to short USDT, according to Tether, “have a fundamental misunderstanding of both the cryptocurrency market and Tether.
Early in May, UST abruptly lost its peg, driving the price of the native token of the Terra ecosystem, LUNA (now referred to as LUNC), from over $60 to a few hundredths of a cent.
So tether see an almost 22% drop in its market cap since 10 May from $86 billion dollar to $66 billion market cap according to the data from coin market cap.
Tether news: He claimed that in order to eventually buy back tokens at a lower price, hedge funds have been putting pressure “in the billions” to “harm
In its most recent blog post, Tether mentioned that a number of myths surrounding its holdings have served as the inspiration for this short-selling movement, including the notion that Tether has made unsecured loans or that it holds a sizable amount of Chinese commercial paper.