Tether's mysterious trade papier exposure

The public face of the largest stable coin of Krypto, Paolo Ardoinino, Chief Technology Officer from Tether, has hedge funds that empty the market capitalization token of $ 66 billion, the feudal shoe.

About 12 tweets on Monday, er insulted " etc. " And said that Tether was "the only stablecoin that has proven itself under extreme pressure", referring to the repayments of $ 17 billion that she processed in May and June.

"After all, these hedge funds, which are borrowed from USDT and sold it empty, have to buy them back. What will happen then?" He warned.

But in a message, Ardoino may have indicated something important about the reserves that support the most widespread and most controversial stable coin from crypto.

Some background information: Tether spent “USDT” tokens used by crypto dealers as a dollar replacement. Its value of $ 1 to 1 is covered by dollar assets that are kept in Tether's reserves.

The controversy around these reserves has been raging for years. In 2021, Tether paid tens of millions of US supervisory authorities in comparisons about his previous disclosures.

Today, Hedge Fund, including Fir Tree Partners and Viceroy Research, Usdt, have reduced, with the idea that the assets that are currently supported by Tether are less worth less than the tokens in circulation. Tether has vigorously denied this claim.

There is an indication that Tether may have suffered losses in trading papers in his stocks, which, according to a Bloomberg report, also included Chinese trading papers last year. At the beginning of this month, Tether published a blog post:

The rumor is aware that 85 % of his commercial paper portfolio is covered by Chinese or Asian Commercial Papers and is traded with a discount of 30 %. These rumors are completely wrong and are likely to be distributed to trigger further panic to make additional profits from an already stressed market. Tether condemns tests in which simple users often suffer the greatest damage, while only a few coordinated funds increase their profits.

The article added that Tether's "current portfolio of Commercial Paper has been reduced to 11 billion since then (out of 20 billion end Q1 2022) and will be 8.4 billion by the end of June 2022".

Ardoinino made a similar comment in his Twitter thread this week:

8 /
tether also reduced his commercial paper engagement from ~ 45 billion to ~ 8.4 billion and will let it expire completely in the coming months. All expiring CP were rolled in US treasure changes and we will continue until CP engagement is 0.
The Tether portfolio is stronger than ever.

- Paolo ardoinino (@paoloardoinino) 27. June 2022

So here is what a hedge fund that is briefly tether has pointed out customers on the back of Ardoinos tweets.

If you look at the quarterly breakdown that Tether has published about his reserves, the Commercial Paper stocks should be well below $ 8.4 billion if the company simply rolled it into US treasure changes.

A certificate of the Tether accountant on the Kaiman Islands about Tether reserves says that on March 31, 2022, USD 20, 1 billion in trading papers and deposit certificates.

Most of it was short -term. In particular, $ 18.9 billion should be due within 90 days. In other words, when Tether had his commercial paper rolls rolled off, then it should only be $ 1.2 billion by the end of June, not $ 8.4 billion.

What explains this gap? Has Tether gave someone payment extensions? Were some commercial papers not fully repaid at the due date? We don't know. We asked Tether, but have not yet received an answer.