At the height of the cryptocurrency market, Alameda reportedly generated more Tether than it managed in total.
Coinbase director Conor Grogan recently went to X to highlight the fact that 39.55 billion USDT coins were created by Alameda Research, as shown by information stored on the blockchain.
In a recent tweet, Conor Grogan revealed some information on the creation of Tether (USDT). On-chain information suggests that crypto investment company Alameda Research created 39.55 billion USDT coins. This amount is considerable, making up 47% of the total Tether in circulation at the moment.
Protos had previously estimated the sum to be about $36.7 billion, thus this new information directly contradicts that figure. Alameda’s participation was previously understated, but Grogan stressed that he revised the numbers after discovering new wallets engaged in USDT minting.
The USDT redemption method was also called into doubt by Grogan’s research. He brought out the difficulty of tracking redemptions, noting that Tether seems to coordinate burning off-chain. Redeeming USDT requires direct transactions with Tether’s treasury, making it harder to monitor than other cryptocurrencies using deposit addresses.
When asked whether he thought any other market makers would be participating in USDT redemptions, Grogan offered his own speculations. Alameda was responsible for 3.9 billion Tether in redemptions from FTX, he said, with a large percentage of that amount coming in a span of only two days in May 2022, when the Luna collapse was at its peak.
Protos reported in 2021 that market makers Alameda Research and Cumberland Global were instrumental in bringing USDT to the cryptocurrency community, and this new information lends credence to their claims. According to the data, these market makers took in at least $60.3 billion USDT, which is almost 55% of the total outgoing volume.
Sam Bankman-Fried, a crypto millionaire, is the driving force behind Alameda Research, a “multistage crypto and fintech investment firm.” In 2017, SBF established the company. Because of its involvement with the FTX exchange and other investments and fundraising rounds, the business has become well-known in the cryptocurrency sector.
The research also showed that Tether has transferred $31.7 billion USDT to Alameda Research over the last year alone, for a total of around $36.7 billion.
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