FTX’s Alameda Research Allegedly Contributed to Tether’s Dominance
In a recent thread on X, Conor Grogan, Coinbase’s director of product strategy & business operations, and an on-chain sleuth, discussed how FTX’s Alameda Research played a role in Tether’s dominance. Grogan’s on-chain data revealed that Alameda minted $39.55 billion worth of USDT, which accounts for 475% of Tether’s circulating supply.
The Amount Minted Exceeds Alameda’s Assets Under Management
Grogan pointed out that the amount of USDT minted by Alameda was higher than the firm’s assets under management (AuM) at the crypto peak. According to Forbes’ data, Alameda had approximately $37.6 billion in AuM.
Difficulties in Obtaining Accurate Data on USDT Redemptions
Grogan acknowledged the challenges in obtaining accurate data on USDT redemptions but estimated that Alameda possibly redeemed $3.9 billion USDT. Most of these redemptions occurred in May 2022 around the time when Terra Luna experienced a collapse.
Ties Between Alameda Research and USDT
Grogan referenced a previous thread by Sam Trabucco, Alameda’s ex-CEO, where he mentioned how traders, including Alameda, took advantage of arbitrage opportunities provided by USDT. Trabucco suggested that Alameda contributed to driving up the price of USDT and made “big bets” on it.
Sam Bankman-Fried (SBF), Alameda’s former CEO, confirmed that the trading firm created and redeemed USDT directly with Tether using the US dollar. SBF explained that they created large amounts of USDT due to high demand.
Hot Take: Alameda Research’s Influence on Tether’s Dominance
FTX’s Alameda Research has allegedly played a significant role in Tether’s dominance. On-chain data reveals that Alameda minted $39.55 billion worth of USDT, accounting for a significant portion of Tether’s circulating supply. This amount exceeds Alameda’s assets under management during the crypto peak. Additionally, there are challenges in obtaining accurate data on USDT redemptions, but it is estimated that Alameda redeemed a substantial amount of USDT.
Furthermore, previous statements by Alameda’s ex-CEO and confirmation from Sam Bankman-Fried indicate that the trading firm took advantage of arbitrage opportunities provided by USDT and made significant bets on the token. This sheds light on Alameda Research’s involvement in driving up the price of USDT and its close ties to Tether.
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