Hedge Funds Are Betting Against Tether as Crypto Melts Down
wsj.comhttps://www.analyticsinsight.net/bitcoin-recovery-is-a-facad...
very shaky on how the futures stand
That's an impressively bad article - some of the worst scroll hijacking I've seen, quoting Shiff who's a permabear and stuff like
>Economic Daily has warned investors that the price of leading cryptocurrency Bitcoin is “heading to zero”.
People who were already aware bitcoin is a leading cryptocurrency probably know it's not going to zero.
No mention of the futures. How are they standing then?
> But more hedge funds got interested in shorting tether after the collapse in May of another stablecoin, TerraUSD, according to Genesis.
How do you even short a stablecoin? How do you borrow the Tether to sell it?
You can deposit something like AVAX as collateral into a DeFi loaning protocol such as Benqi and then borrow USDT. (I actually wasn't loaning out a LOT of USDT on that until somewhat recently.) The general idea is that people are often willing to loan you things if you have enough collateral and are willing to pay high enough interest on the loan.
wasn't -> was
I'm not sure in general but you can go on the Kucoin exchange and borrow USDT and sell it for USDC.
Also if you don't mind having a position in bicoin you can bet BTC/USDT will go up on the futures market. Actually I guess you could go long BTC/USDT and short BTC/USDC to hedge the bitcoin movements.
I'm not quite sure the costs. I once shorted Tether on Kraken but it was horribly expensive.
> How do you even short a stablecoin? How do you borrow the Tether to sell it?
Sign a contract and then get the Tether transferred to your wallet to sell. Genesis may even facilitate such trades directly [1].