The technical officer of the USDT stablecoin issuer company claimed that the majority of the crypto companies are trying to short their stablecoins holdings and they are creating more fear and panic among the crypto investors.
Tether is the biggest Stablecoin issuer company. This company operates its USDT coin as a leading stable coin project and also this company is enjoying as first mover advantage in the category of stable coin. Due to some questions regarding the backend collateral of Tether, the company faced huge backslash and its rival companies are competing more dominantly.
On 27 June, Paolo Ardoino, CTO of Tether, took to Twitter and claimed that the majority of the companies are trying to take advantage of the Terra ecosystem collapse and they are further creating more panic in the crypto industry.
According to Tether’s CTO, hedge fund managers ccompanies are using “short the trade” strategy to make huge profits, that means selling at high and further buying at low.
“(Companies trying) Create enough pressure, in the billions, causing tons of outflows to harm Tether liquidity and eventually buy back tokens at a much lower price.”
Paolo also claimed that such things as ruining the reputation of such stablecoins, which are already facing panic & Fud pressure, and in this situation Tether’ USDT also faced outflow of funds in billions.
Tether CTO tried to explain that people should not take tension under this situation because USDT is fully backed by the collateral assets and there is no sell pressure.
Further through the same tweet thread, Tether CTO tried to explain that USDT Stabelcoin is now that asset, which proved itself the best stable coin under these extreme market situations. No matter what the Fuds claim against Tether as a bad guy but what is the reality? Everything is in front of this industry.