Short sellers are betting against a cryptocurrency whose price shouldn’t move. Tether is the most popular currency for trading bitcoin and is supposed to have a fixed value pegged to the U.S. dollar. That price stability—tether hasn’t traded lower than 0.999 cents against the U.S. dollar in the past year—means that short sellers’ bets have yet to pay off. And most of Genesis’s initial clients have since exited the initial trade, Genesis said, though some investors have wanted to discuss ways to short tether in recent weeks. Tether releases new tether tokens when it receives a corresponding amount of dollars from customers.

Source: Wall Street Journal April 04, 2022 03:46 UTC