{"id":479901,"date":"2022-08-01T05:08:28","date_gmt":"2022-08-01T02:08:28","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/tether-calls-thesis-behind-usdt-short-selling-flat-out-wrong\/"},"modified":"2022-08-01T05:08:28","modified_gmt":"2022-08-01T02:08:28","slug":"tether-calls-thesis-behind-usdt-short-selling-flat-out-wrong","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/tether-calls-thesis-behind-usdt-short-selling-flat-out-wrong\/","title":{"rendered":"# Tether calls thesis behind USDT short-selling  &#8216;flat out wrong&#8217;"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2841026af13\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2841026af13\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/tether-calls-thesis-behind-usdt-short-selling-flat-out-wrong\/#%E2%80%9D_Tether_calls_thesis_behind_USDT_short-selling_%E2%80%98flat_out_wrong_%E2%80%9C\" >&#8221; Tether calls thesis behind USDT short-selling  &#8216;flat out wrong&#8217; &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Tether_calls_thesis_behind_USDT_short-selling_%E2%80%98flat_out_wrong_%E2%80%9C\"><\/span>&#8221; Tether calls thesis behind USDT short-selling  &#8216;flat out wrong&#8217; &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDcvMzdkMWE3MzQtZmM1NC00ZDI5LTkwMjItMDBkNzAxOTY3OWM3LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-28d77a7a>Tether, the issuer of Tether (USDT), says that hedge funds that attempted to short its stablecoin after Terra\u2019s collapse in May are using a thesis that is \u201cincredibly misinformed\u201d and \u201cflat out wrong.\u201d\u00a0<\/p>\n<p>In a blog <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/tether.to\/en\/why-hedge-funds-are-losing-money-shorting-usdt\/\">post<\/a> from July 28, Tether pointed to a June 28 Wall Street Journal <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.wsj.com\/podcasts\/google-news-update\/hedge-funds-bet-against-tether-as-crypto-melts-down\/44684bf4-3b44-456c-903f-20a86d3a24c1#:~:text=Short%20sellers%20have%20been%20ramping,health%20of%20some%20crypto%20companies.\">podcast<\/a> in which host Luke Vargas and guest Caitlin McCabe discussed the bearish crypto market and concerns over Tether\u2019s backing assets as the reasons for short sellers\u2019 <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>etite for Tether.<\/p>\n<p>Tether said that the hedge funds, which saw Terra\u2019s collapse as a reason to short USDT, have \u201ca fundamental misunderstanding of both the cryptocurrency market and Tether.&#8221;<\/p>\n<blockquote><p>\u201cThe simple fact that hedge funds view Terra\u2019s collapse as a constructive thesis to short USDT represents the asymmetric knowledge gap between cryptocurrency market participants and entities in the traditional finance space.\u201d<\/p><\/blockquote>\n<p>In early May, UST lost its peg in dramatic fashion and pulled down the price of Terra ecosystem\u2019s native token LUNA &#8211; now known as LUNC &#8211; to fractions of a cent from over $60. <\/p>\n<p>In that time, Tether experienced a 21% drop in market cap since May 11 from $85.3 billion, though it is still the\u00a0largest stablecoin in the crypto market today with a $65.8 billion market cap <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.coingecko.com\/en\/coins\/tether\">according<\/a> to CoinGecko.<\/p>\n<p>In late June, Tether chief <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> officer Paolo Ardoino confirmed that USDT had become the subject of a &#8220;coordinated attack&#8221; by hedge funds looking to short-sell the crypto asset.\u00a0<\/p>\n<p>He alleged that hedge funds have been trying to create pressure \u201cin the billions\u201d to \u201charm Tether liquidity\u201d with the aim of eventually buying back tokens at a much lower price.<\/p>\n<p>Tether in its most recent blog post noted that several misconceptions about its holdings have been the basis of this short-selling movement \u2014 including Tether holding significant Chinese commercial paper or Evergrande debt, that USDT is created \u201cfrom thin air,\u201d or that Tether has issued unsecured loans.<\/p>\n<blockquote><p>\u201cIn short, the underlying thesis of this trade is incredibly misinformed and flat-out wrong. It is further supported by a blind belief in what borders on outright conspiracy theories about Tether.\u201d<\/p><\/blockquote>\n<p>In a separate post the previous day, Tether attempted to reaffirm the strength of its financial backing and ability to honor redemptions, reiterating that it holds no Chinese commercial paper and had cut its total holdings of commercial paper by 88% from $30 billion to $3.7 billion over the past year.<\/p>\n<p>It added that commercial paper holdings would be as low as $300 million by the end of August, and it will hold zero commercial paper by early November.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Tether fortifies its reserves: Will it silence critics, mollify investors?<\/em><\/strong><\/p>\n<p>The week that the UST fiasco started, USDT depegged briefly on the open market to a low of about $0.96 as investors dumped tokens either for fiat through direct redemptions or for other tokens, such as competitor USD Coin (USDC). However, Tether continued to honor fiat redemptions of $1 per token through that period.<\/p>\n<p>Its last financial <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/tether.to\/en\/transparency\/#reports\">disclosure<\/a> on March 31 revealed that 85.64% of Tether\u2019s financial backing is in cash and cash equivalents, including commercial paper. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/tether-calls-thesis-behind-usdt-short-selling-flat-out-wrong\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Tether calls thesis behind USDT short-selling &#8216;flat out wrong&#8217; &#8220; Tether, the issuer of Tether (USDT), says that hedge funds that attempted to short its stablecoin after Terra\u2019s collapse in May are using a thesis that is \u201cincredibly misinformed\u201d and \u201cflat out wrong.\u201d\u00a0 In a blog post from July 28, Tether pointed to a&#8230;<\/p>\n","protected":false},"author":1,"featured_media":479902,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDcvMzdkMWE3MzQtZmM1NC00ZDI5LTkwMjItMDBkNzAxOTY3OWM3LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75493,122378,82350,74355,117,36041],"class_list":["post-479901","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-stablecoin","tag-terra","tag-usd-coin","tag-adoption","tag-business","tag-tether"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/479901","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=479901"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/479901\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/479902"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=479901"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=479901"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=479901"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}