Alfred’s comments come after shocking reports of a concerted effort by exchanges to save Tether (USDT).
Value Investor and Bitcoin Enthusiast Mike Alfred claim Tether, the largest stablecoin issuer, is likely to be “hunted” by short sellers.
Furthermore, he adds that Binance, the largest cryptocurrency exchange, would likely be vulnerable if Tether were to be submerged.
Alfred’s rather sensational remarks came after The Wall Street Journal leaked private text messages between Binance CEO Chapong Chao and FTX founder Sam Bankman-Fried.
Zhao and some other market players were concerned that FTX’s sister exchange Alameda Research could hurt Tether’s USDC and the stablecoin could lose its peg. .
The above message was exchanged within the group on the privacy-focused app Signal called “Exchange Coordination”. Alfred claims that Chat’s name itself “makes him shiver.” Besides Zhao and Bankman-Fried, the group allegedly included Tron boss Justin Sun and his CTO of Tether, Paolo Ardoino. The latter also feared that the FTX-Alameda effort could lead to the USDT stablecoin de-pegging.
Alfred argues that Zhao will not stop private investment firms such as New York-based Fir Tree from betting on USDT.
Separately TweetBitcoin enthusiasts also accused Zhao of being “desperate” to keep deposits flowing on exchanges, arguing against self-management.
Today, Binance’s boss defended the exchange’s financial situation in an interview with CNBC, specifically addressing the issue of withdrawals.
