Tether calls short seller’s $1M Tether bounty ‘pathetic bid for attention’

Short seller unit Hindenburg Research will pay a million-dollar bounty to anyone who can provide details of what backs enigmatic stablecoin Tether.

Hindenburg’s Tether bounty, announced via Twitter late Tuesday, is the first attempt by a private entity to pay for uncovering what’s behind the number one stablecoin in the cryptocurrency ecosystem.

The program, which has a full set of criteria to be met for a payout, will ask about Tether’s commercial paper, loans, and how withdrawal and redemption mechanisms work, among other aspects.

If an entrant’s submission is able to meet Hindenburg’s objectives, an individual still has to fulfil a host of other terms, including not violating any binding agreements (such as NDAs).

While Hindenburg said it doesn’t hold any positions in crypto (long or short), the crew isn’t exactly new to the ecosystem.

Earlier this year, it publicly announced a short on Ebang, a Chinese Bitcoin ASIC manufacturer.

Hindenburg is up around 62% on Ebang short at press time.

Hindenburg’s Tether bounty is the first attempt by a private entity to uncover what exactly gives the number one stablecoin its value.
Hindenburg said it reserves the right to pay out the $1 million bounty scaled to the information provided.

Read more: [Court won’t dismiss crypto traders’ $3B Tether market manipulation case]

Hindenburg’s Tether bounty seems geared toward people in the trenches with Tether and Bitfinex, who are able to give a detailed account on the company’s finances. 

It seems the short seller is targeting Tether’s executive leadership, individuals in charge of banking relations, or people with a deep understanding of internal accounting at Bitfinex-related companies.

So, while Hindenburg may very well intend to make good on their million-dollar promise, there’s a very select few people who would have the information the research firm desires.

Tether responds to bounty with meme

In a reply posted Wednesday, Tether called Hindenburg’s bounty “cynical” and a “pathetic bid for attention.” 

While never directly addressing the bounty or the makeup of its reserves (which despite pie charts remain opaque), the press release claimed Hindenburg is “attempting to discredit not just Tether, but an entire movement.”

To end the letter, the oldest stablecoin reckoned it’s “more scrutinized” than its peers. 

Tether’s chief tech guy Paolo Ardoino had a meme for Hindenburg (for more “ooooor” memes, check out the Protos article below).

[Read more: 5 accurate crypto trader memes to help navigate this hellscape industry]

Meanwhile, a recent list of activist short sellers created by Breakout Point indicates Hindenburg has performed quite well this year, with its shorted stocks down 40% on average.

Follow us on Twitter for more informed crypto news.

Join our newsletter and get crypto news in your inbox

Newsletter

© 2021 Protos