- Tether CTO opens about attempts of attack on USDT.
- Paolo Ardoino tweeted that some hedge funds have attempted to shorten the stablecoin.
- Ardoino shared a series of tweets in which he also mentioned Tether’s unique initiatives.
Paolo Ardoino, CTO at Tether, revealed that some hedge funds have attempted to cause further panic in the market after Terra/LUNA collapse. In detail, Ardoino tweeted that hedge funds have attempted to shorten USDT by borrowing hundreds of millions of stablecoin in loans. He also remarked that this attempt seems like a coordinated attack, with a chance to create a new wave of FUD, troll armies, and clowns, among others.
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. https://t.co/hhcsgHV1Ow
— Paolo Ardoino (@paoloardoino) June 27, 2022
Significantly, Ardoino tweeted many posts regarding the USDT shortening attempt. Also, he explained the tools being attacked, the goals of the attack, and several other processes of the attempts.
In his second tweet, Ardoino mentioned the tools that would be attacked, such as USDT/USD perpetual swap, spot short selling, DeFi pool, and many more. He claimed that the goal of such an attempt was to create more pressure in billions, causing tons of outflows to harm Tether liquidity and eventually buy back tokens at a much lower price.
Moreover, Tether CTO’s tweet read that the hedge funds believed and helped all the FUD spread by the truthers in the past months. Ardoino went on to say that attackers believe that Tether is not 100% backed and had exposure to Evergrande. Adding more to the list of what the attackers falsely believe, Ardoino stressed: “Tether had/has in fact>=1000% of the backing, never failed a redemption, and all USDT are redeemed at $1”.
Alongside, Ardoino’s posts also referred to Tether’s successful activities, such as reducing commercial paper exposure from ~45B to ~8.4B, rolling all the expiring CP into US Treasury bills, and processing 16B in redemptions in one month, etc. Eventually, Ardoino threw a question at the public, asking if any other stablecoins could survive the same test.