Crypto News

Is Alameda Research Trying to Short USDT? Here’s The Truth

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The crypto markets have become more volatile ever since the problems with the FTX exchange and Alameda came to light. Extreme panic was felt in the market as Bitcoin and all the other major cryptocurrencies hit fresh yearly lows. However, heads turned when the leading stablecoin Tether(USDT) depegged, with a strong bearish wave dominating the market.

The rumor mill has it that SBF’s Alameda Research group is trying to short the USDT token in order to recoup a portion of their debts.

As per Hsaka, a renowned crypto analyst, tweeted that the USDT shorting is reportedly being carried out by Alameda Research, by supplying the USDC stablecoin on the AAVE platform and thereby borrowing USDT. Furthermore, the platform is swapping USDT to USDC on the curve, and the transaction has been recorded on Etherscan.

If the rumor is correct as can be seen from the Etherscan records, then the Tether reserves will need to burn more USDT than they did previously.

 

The stablecoin king, USDT, did get de-railed from its $1 peg by 3% today. However,  it may repeg to $1 in the interim, but the broader market environment still remains extremely bearish.

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Pratik Bhuyan

Pratik has been a crypto evangelist since 2016 & been through almost all that crypto has to offer. Be it the ICO boom, bear markets of 2018, Bitcoin halving to till now - he has seen it all.

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