A new study using Protos claims that Tether float is dominated by using simply two firms — Alameda Research and Cumberland.
Tether (USDT) has long passed from being a renegade cryptocurrency to turning into the industry’s most important crutch during the remaining seven years, according to a new report.
Essentially, USDT is a bridge between usual currencies like the United States dollar and decentralized digital currencies working on open blockchain networks.
Independent crypto outlet Protos provided an in-depth insight into the most frequent stablecoin and the liquidity providers who provide it to cryptocurrency platforms.
According to the report, issued USDT is specifically received via simply two market makers. Between 2014 and October 2021, Alameda Research and Cumberland received a projected $60.3 billion in USDT, accounting for almost 55% of all outbound extent ever. According to Protos, the closest competitor minted a few hundred million USDT.
Alameda Research, which is led by 29-year-old cryptocurrency billionaire Sam Bankman-Fried, acquired $36.7 billion or nearly a 0.33 of all Tether produced. Cumberland Global, the world’s largest crypto liquidity provider, comes in 2d with $23.7 billion received. Cumberland is a DRW Holdings subsidiary, which was once situated in 1992 and is considered as one of the world’s principal financial traders.
Protos states that Tether’s Treasury transferred $36.7 billion in USDT to Alameda Research, with $31.7 billion (86%) of it received in the remaining 12 months. This range equals about 37% of all outbound USDT volume.
According to the report, Tether dispatched over $30.1 billion (87%) of Alameda’s USDT to its cryptocurrency and derivatives exchange, FTX. However, Alameda additionally has wallets on a variety of special cryptocurrency exchanges. The corporation obtained $2.1 billion (6%) on Binance, $1.7 billion (5%) on Huobi, and $115 million on OKEx. The remaining $705 million was once transferred to non-exchange addresses.
Cumberland, on the other hand, obtained $23.7 billion in USDT. In the previous 12 months alone, $17.6 billion in USDT (74%) was once obtained from Tether’s Treasury. This discern bills for 22% of all outbound USDT volume ever recorded.
Protos notes Cumberland’s significance as a liquidity supply and market maker for Binance, having been on the exchange on the grounds that at least early 2019. Tether issued Cumberland $18.7 billion (79%) in USDT to Binance, with the relaxation going to other change platforms.
The liquidity provider acquired $131.5 million (less than 1%) on Poloniex, $9 million on Bitfinex and some other $30 million on each Huobi and OKEx.
Tether stays the world’s greatest stablecoin through market capitalization. However, the company’s token has been under scrutiny by means of regulators in current times. As the U.S. Commodity Futures Trading Commission levied fines totaling $41 million and $1.5 million towards sister crypto firms Tether and Bitfinex, respectively, for breaches of the Commodity Exchange Act and a prior CFTC order, respectively, on Oct. 15.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.