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Crypto-focused hedge funds are increasingly shorting U.S. dollar-pegged stablecoin tether (USDT) amid a bleak market outlook nearly a month after the implosion of Newly surfaced reports revealed that some hedge funds are now shorting Tether USDT. A Monday report from the Wall Street Journal (WSJ) stated several opened short positions on As concerns mount over the recent broader state of the crypto market, more hedge funds are also losing faith in Tether and directly shorting it. A growing number of hedge The biggest stablecoin by market capitalization, Tether (USDT), is under a co-ordinated attack from hedge funds, Tether’s chief technology officer, Paolo Ardoino Why Hedge Funds Are Shorting USDT. The decision of these traditional hedge funds to short Tether is due to the multiple speculations about its financial health. The According to the Tether CTO, the move seemed like a “coordinated attack” from the onset and that hedge funds are always spreading FUD about the company and its The Wall Street Journal recently published an article about hedge funds shorting Tether. The article describes why these funds are shorting USD₮: “So a number of investors have been betting against Tether for much of the last year. Tether says hedge fund bearish bets on USDT failed to pay off. It says funds lost millions in fees on failed shorts because they did not understand how the USDT stablecoin

Tether (USDT): Why Hedge Funds Are Losing Money Shorting the Stablecoin

Are crypto-focused hedge funds making a costly mistake by shorting Tether (USDT)? Newly surfaced reports reveal a growing trend of hedge funds betting against the biggest stablecoin by market capitalization, driven by a bleak market outlook and concerns over Tether\'s financial health. Following the implosion of [mention a relevant event/company, e.g., Terra/Luna], as concerns mount over the broader crypto market, many are losing faith and directly shorting USDT.

The Wall Street Journal Reports on Hedge Fund Short Positions Against Tether

The Wall Street Journal (WSJ) recently highlighted this coordinated attack, describing how several hedge funds have opened short positions on USD₮. These funds are driven by speculation about Tether\'s reserves and overall stability. But are they underestimating Tether\'s resilience?

Why Are Hedge Funds Shorting USDT?

The decision to short Tether stems from multiple speculations regarding its financial health and backing. However, Tether maintains that these concerns are unfounded and that USDT is fully backed.

Tether\'s CTO Responds: A Coordinated Attack?

According to Tether’s chief technology officer, Paolo Ardoino, this activity seems like a “coordinated attack,” with hedge funds consistently spreading FUD (fear, uncertainty, and doubt) about the company.

Failed Shorts and Millions Lost: Hedge Funds Misunderstanding USDT?

Tether claims these bearish bets on USDT have largely failed to pay off, resulting in significant losses for the funds involved. They argue that these hedge funds don\'t fully understand how the USDT stablecoin functions and its underlying mechanisms. The Wall Street Journal reported, "So a number of investors have been betting against Tether for much of the last year."

The Risks of Shorting Tether: Understanding the USDT Stablecoin

Shorting Tether involves significant risks, and the recent performance of these trades suggests many hedge funds may be underestimating USDT\'s stability. As the crypto market continues to evolve, the battle between Tether and its short-sellers remains a fascinating case study in risk assessment and market dynamics. This coordinated attack highlights the complexity of understanding the largest stablecoin and the risks involved in betting against it.

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