THELOGICALINDIAN - The crypto ecosystem is still ambidextrous with the fallout acquired by the collapse of the Terra ecosystem the aggregation abaft stablecoin USDT Tether is actuality targeted by barrier funds Confirmed by Paolo Ardoino CTO at Tether and crypto barter Bitfinex via his Twitter account
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According to the rumors, barrier funds accept been aperture abbreviate positions on Tether (USDT) and accept been actively gluttonous to actualize agitation in the crypto industry to affect the stablecoin. Peg 1:1 to the amount of the U.S. dollar, these entities ability be aggravating to carbon the contest that blast LUNA and UST.
These agenda assets were at the epicenter of the Terra ecosystem, the closing operated as an algebraic stablecoin called to the U.S. dollars until it comatose accident over 90% of its value. According to Ardoino, barrier funds ability try to accumulation by creating the altitude for a agnate blast with USDT:
I accept been accessible about the attempts from some barrier funds that were aggravating to account added agitation on the bazaar afterwards TERRA/LUNA collapse. It absolutely seemed from the alpha a accommodating attack, with a new beachcomber of FUD, broadcast armies, clowns etc.
The aftereffect would be different, as Tether’s CTO explained, these barrier funds would allegedly try to activate a massive basic address from the stablecoin and destabilize its price. Ultimately, if the amount of USDT drops, the abbreviate players would “buy aback tokens at a abundant lower price”.
These entities, Ardoino said, accept been allegedly overextension Fear, Uncertainty, and Doubt (FUD) on the stablecoin, such as the rumors that affirmation Tether is not 100% backed by absolute assets, and that it was apparent to abort investments. The Tether CTO denied already afresh denied the rumors:
Tether had/has in actuality >= 100% of the backing, never bootless a accretion and all USDt are adored at 1$. In 48 hours Tether candy 7B in redemptions, averaging 10% of our absolute assets, article about absurd alike for cyberbanking institutions.
Can Tether Follow LUNA/UST And Lose Its Pegged?
In that sense, Ardoino put into catechism the “billions” in abbreviate positions taken by these barrier funds. The controlling claims USDT is a battle-tested stablecoin that has outlasted several crypto buck markets, and alike companies advised “the angelic heroes of our industry”.
As Bitcoin and the crypto bazaar trend to the downside, Tether’s (USDT) absolute bazaar assets saw an about 20% drop. However, the stablecoin operates with a actual altered apparatus than that of Terra’s LUNA-UST and seems absurd to chase the aforementioned path.
USDT has consistently acquired altercation in space, but it has operated for about a decade. The aggregation abaft the stablecoin has been convalescent on its government contacts, its transparency, and abacus added assets to aback USDT.
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As a pseudonym analyst said on Twitter, this doesn’t beggarly the stablecoin could never fail, but it does assume to advance the “FUD on USDT seems overrated”.
The majority of Tether audience (based on USDT arising amount) are acclaimed bazaar makers and trading firms such as @AlamedaResearch, @CumberlandSays, @jump_, etc.
89.5% of absolute USDT arising was beatific to bazaar makers of Big CEX such as Binance, FTX, OKX, Bitfinex, etc. pic.twitter.com/qQ4DHAIfuF
— alphanonce Intern (@alphanonceStaff) June 22, 2022
