Tether CEO Mocks Digital Currency Group for Shorting USDT
Paolo Ardoino, the CEO of Tether, took a jab at Digital Currency Group (DCG), a distressed crypto firm facing a lawsuit from the New York Attorney General (NYAG). The CEO mocked DCG after court documents revealed that they had shorted “400 million” USDT following rumors of its instability when the crypto hedge fund Three Arrows Capital (3AC) collapsed. DCG and Barry Silbert feared that Tether “would blow up” and decided to hedge risks and protect the company.
Tether’s Resilience Amidst Crypto Meltdown
Ardoino reflected on the events in mid-2022 and highlighted Tether’s resilience, especially when “almost all the rest of the crypto industry was melting down.” Despite a deluge of redemption requests, Tether was able to redeem and pay out $7 billion in two days and another $20 billion in less than a month. Ardoino emphasized that each token in circulation is fully backed by cash and other cash reserves, including treasuries, ensuring that each of the over 100 billion USDT can be redeemed for cash at any time.
Shorting USDT: Not a Brilliant Idea
In light of DCG’s current distressed state and the ongoing lawsuit against them for fraud, Ardoino commented that shorting USDT proved to be as brilliant an idea as accepting FTT as collateral. FTX, a bankrupt crypto exchange founded by Sam Bankman-Fried, issued FTT. Genesis Global, one of DCG’s subsidiaries, had exposure to FTX, and its collapse was partly attributed to its reliance on FTT as collateral.
Hot Take: Tether CTO Mocks DCG’s Doubt in USDT’s Resilience
Paolo Ardoino, the CEO of Tether, took a jab at Digital Currency Group (DCG) for shorting USDT and doubting its resilience amidst the crypto industry meltdown. Despite rumors of instability, Tether proved its resilience by redeeming and paying out billions of dollars in a matter of days. Ardoino also criticized DCG’s decision to accept FTT as collateral, highlighting the consequences it faced when FTX, the issuer of FTT, collapsed. This incident serves as a reminder that shorting USDT is not a brilliant idea. As Tether continues to demonstrate its stability and backing, investors can have confidence in the USDT token.
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