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ALAMEDA'S USDT PRINTER WENT BRRRRRRRR
Interesting details about Alameda Research. Just take a look at this.
Here's a headline:
Alameda Research's $38 Billion Tether Issuance Puts Spotlight on Crypto Stablecoin Market.
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Coinbase Director Conor Grogan has recently revealed intriguing data concerning Alameda Research's involvement in the issuance of Tether tokens.
According to his findings, Alameda issued an astonishing $38 billion in USDT in 2021.Ā We're talking billions, not millions here!
This eyebrow-raising figure outpaces Alameda's reported total assets under management during the apex of last year's cryptocurrency boom.
Grogan notes that nearly $3.9 billion of these USDT tokens were likely designated for redemption by FTX, mostly during the period when Terra's algorithmic stablecoin was faltering.
Sam Trabucco, Alameda's former co-CEO, has openly discussed the company's strategy, including its focus on exploiting arbitrage opportunities tied to USDT across multiple cryptocurrency exchanges.
He remarked that the premium at which Tether trades compared to the US dollar often experiences higher volatility.
"The combo of BTC/USDT and BTC/USD markets are WAY more liquid than any exchange's USDT/USD market, so the prices from these (even though its a two-leg trade) matter way more." he said.
Additionally, he highlighted the differences between Tether and other dollar-pegged stablecoins, such as USDC, which typically have less volatile premiums due to their distinct mechanisms for creation and redemption.
According to Trabucco, Alameda's setup and abundant resources made the firm uniquely qualified to take advantage of these fluctuations, selling USDT when its price exceeded $1.
He described this scenario as a "win-win," as it not only increased Alameda's profitability but also contributed to maintaining USDT's peg to the dollar.
SBF's tweet from Jan 12, 2021
The revelations by Coinbase's Conor Grogan indicate that Alameda Research appears to have used its strategic position and specialized mechanisms to accrue significant gains through arbitrage in the Tether marketplace. As a result, this development invites further scrutiny and could bring into question the operational transparency of key entities in the fast-paced world of cryptocurrency stablecoins.
TL;DR:Ā Coinbase Director Conor Grogan has revealed that Alameda Research issued a staggering $38 billion in Tether (USDT) in 2021, a figure that exceeds their reported total assets during last year's crypto bull run. The data also shows that Alameda leveraged its unique position and resources to exploit arbitrage opportunities in the Tether market, sparking questions about the transparency and operations of major players in the cryptocurrency stablecoin arena.
SELECTED MEME OF THE DAY
