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Bloomberg: The American hedge fund took a short position against USDT
The American hedge fund Fir Tree Capital Management took a “significant” short position against Tether Stablecoin (USDT). The structure counts on the fall of the value of securities from the reserves of the Actual Asset, writes Bloomberg with reference to the company’s customers.
According to the agency, Fir Tree found a way to shorten USDT as part of an asymmetric trade strategy, which involves insignificant risks compared to potential profit.
The Moore Cayman audit company confirmed that as of July 30, 2021, USDT was 100% provided with Tether Holdings Limited reserves. At the same time, the provision of 49% consisted of commercial securities in the amount of $ 30.8 billion.
FIR TREE analysts suggest that most of the “paper” USDT reserve is associated with Chinese developers. After the default of the largest developer of the PRC – Evergrande – the local real estate sector is in crisis.
In September 2021, Tether stated that the company did not https://gagarin.news/news/korean-hyundai-motor-entered-the-nft-market/ have released Evergrande securities. However, Bloomberg later found that the provision of stablecoin includes short -term loans to large Chinese companies.
According to the customers of the hedge fund, analysts expect that some securities from Tether reserves will fall in price, which will lead to potential problems with ensuring. The company believes that a short rate can pay off within 12 months.
According to the publication, Fir Tree began to consider the possibility of a short bet against Tether in July 2021. For this, the company conducted research, including the involvement of third -party experts. The structure can also create a separate fund for this purpose, if there is sufficient interest from investors.
Fir Tree is not the only company that takes a short position against Tether. The representative of Genesis Global told Bloomberg that the broker “helps” some managing assets, providing loans in USDT or structured options for sale.
Recall that in July 2021, Coindesk sent a request to the General Prosecutor’s Office of the state of New York to provide any documents on USDT reserves.
The issuer of Stablecoin petitioned for the prohibition of disclosing data on reserves. In January 2022, Tether again asked the court to protect information about the USDT.