Alameda Research and Cumberland Acquire Significant Portion of Tether (USDT)
In a recent report by Protos, it has been revealed that Alameda Research and Cumberland, two prominent market makers in the crypto industry, have acquired a significant portion of Tether (USDT), the stable digital token. Since its launch in 2014, these companies have bought back an impressive 70% of all USDT ever issued by Tether.
Alameda Research Leads the Pack With 36.7 Billion USDT
According to the report, Alameda Research, established by billionaire Sam Bankman-Fried and owner of FTX exchange, has emerged as the largest buyer of USDT. They have received a staggering 36.7 billion USDT from Tether’s treasuries over the past seven years. Interestingly, around 86% or 31.7 billion USDT of this amount was acquired in the last year alone, indicating a substantial increase in demand for this stablecoin.
Cumberland Follows With 23.7 Billion USDT
Cumberland, the crypto trading arm of DRW Holdings, is the second-largest buyer of USDT. Since 2014, they have acquired 23.7 billion USDT from Tether’s treasuries. In the last year alone, they obtained 74% or 17.6 billion USDT.
Tether Faces Regulatory Scrutiny and Media Criticism
Tether, with a market capitalization exceeding $74.44 billion, is currently under scrutiny from regulators and media outlets due to concerns regarding its transparency and compliance. It recently faced a penalty of $41 million from the US Commodity Futures Trading Commission (CFTC) for making false statements about its reserves. Bloomberg also accused Tether of running a Ponzi scheme by utilizing its reserves to finance loans to Chinese companies.
Hot Take: Alameda Research and Cumberland Dominate USDT Market
Alameda Research and Cumberland have emerged as the leading buyers of Tether (USDT), with Alameda Research acquiring 36.7 billion USDT and Cumberland acquiring 23.7 billion USDT since 2014. The significant increase in demand for this stablecoin has propelled these market makers to acquire a substantial portion of Tether’s supply. However, Tether faces regulatory scrutiny and media criticism due to concerns about its transparency and compliance. It remains to be seen how these developments will impact the future of Tether and the crypto industry as a whole.
Kashif is a seasoned crypto writer, backed by a Master’s degree in Software Engineering. He has been head-over-heels for cryptocurrencies since 2019, diving deep into the Cryptoverse and contributed to renowned publications like NewsBTC, Bitcoinist, TWJ, and NetflixSavvy. Follow him on Twitter & LinkedIn. The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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