Tether continues reducing commercial paper backings from its reserves and announced its intention to remove all of the paper from the reserves last month and so far, it remains on schedule so let’s read more today in our latest Tether news.
Tether continues reducing commercial paper from its reserves and it reached the target sum of $8.4 billion in commercial paper and will continue to do so in the immediate future. $5 billion of Tether’s commercial paper holdings will expire and leave the company with $3.5 billion dollars worth in the portfolio and as a result, the treasury reserves will make up a bigger proportion of the reserves. Tether’s stablecoin USDT had about $20.1 billion in commercial paper backing and the quarterly assurance opinion stated that the percentage of the commercial paper in the reserves was falling with the reserves being fully backed.
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
The stablecoin became depegged for a short while in May amid the market turbulence and on June 15, a few days after Celsius announced stopping its withdrawals, Tether issued a refuting statement that 85% of the portfolio was Asia and Chinese commercial paper trading with huge discount. Tether stated at the time it had a goal of reducing the commercial paper portfolio to zero and the USDT market cap fell to an eight-month low below $70 billion a few days later.
These are not all of Tether’s stability woes. The Chief Technology Officer Paolo Ardoino said that the stablecoin was under attack from hedge funds and added that some hedge funds believed that helped the FUD spread by the “truthers in the past months.”
As recently reported, The Tether CTO alleges that there are plans to harm USDT liquidity and confirmed that the stablecoin has been the subject of an attack by hedge funds that are trying to short-sell the US dollar-pegged crypto asset. Speaking to his followers on Twitter, the Tether executive was responding to reports that the hedge funds were borrowing millions in loans to short USDT after the collapse of Terra.
He alleged that the hedge funds are trying to create pressure to harm the Tether liquditiy with the goal of eventually buying back tokens at lower prices. Ardoino levied accusations that some hedge funds helped spread FUD about the stablecoin.
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