Investors Play Short On Tether In A Time Of Crisis

More individuals shorted USDT as a result of the Tether FUD, which increased the USDT Borrow APY. Both the whole and average interest rates for borrowing in US dollars are 38 percent. The basic plan is to borrow USDT, collateralize it against. When USDT is unpegged, one can exchange USDC for USDT.

The two leading cryptocurrency exchanges are still FTX and Alameda. There is currently talk that FTX’s death may have a greater effect on USD stable token than he wished to admit. And now that Tether (USDT) has abruptly lost its usual $1 peg, it appears as though USDT is under attack. For a brief period, the largest stable coin on Kraken falls below $0.9400. On other platforms, there have been a few minor variations as well.

Alameda’s conflict

After buying $250,000 from Aave this morning and exchanging it for cash, Sam Bankman-Freed’s company Alameda may be held accountable for the conflict. One can recognize the Alameda by its address. Twitter gossips claim that the company is trying to begin depending USDT with obvious network transactions in an effort to stir up panic. The company may be selling USDT at the moment, although its trading position is unclear.

Some people think that this way is multi-level and difficult to retrieve from in an only cryptocurrency transaction. 

FUD is an old story for Tether

At the same time, there are increasing numbers of allegations that attackers are attempting to spread wrong info purposefully in order to begin cooperating with FTX and its coin on the same Tether (USDT). 

These rumors were immediately refuted by Tether CEO Paolo Ardoino. In its comments from yesterday, Tether said it has no dealings with FTX. Tether briefly mentioned $0.90 after the LUNA crash before re-pegging soon after. 

Stakeholders sell USDT for security reasons as opposed to taking risks. Tether has been the target of FUD attacks longer than FTX, claims Alistair Milne, CIO of Altana Digital Currency Fund. Even Vitalik Buterin backed Tether. According to Vitalik, Tether’s openness is still below what he considers appropriate for an asset-backed coin. They did better than he had anticipated, however, given what happened to many of the other important financial forces during this bearish trend.

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