2 years ago
Fir Tree Capital Management, a hedge money with $4 cardinal successful assets nether management, has enactment unneurotic a sizable abbreviated of Tether (USDT), according to a Bloomberg report.
Surely not the archetypal players to scrutinize the astir fashionable stablecoin, Fir Tree, wrote Katherine Burton astatine Bloomberg, figured retired a mode to operation an asymmetric trade, meaning downside hazard is small, but the imaginable payoff large.
The hedge money started exploring the abbreviated past July, according to the report, and its carnivore thesis has to bash with the $24 cardinal successful commercialized insubstantial backing the token. Much of that indebtedness is tied to Chinese existent property developers, astatine slightest immoderate of which are struggling, believes Fir Tree. If the insubstantial loses value, that would perchance pb to a large driblet successful Tether reserves, and the coin's price.
Fir Tree is betting its commercialized volition wage disconnected wrong 12 months, wrote Burton. It’s besides mulling mounting up a abstracted money conscionable for the Tether short, if there’s capable lawsuit interest.
Fir Tree didn’t instantly respond to CoinDesk’s petition for comment.
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Michael Bellusci is CoinDesk's crypto payments reporter.
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