Over the past seven years, tether (USDT) has grown from a rebellious cryptocurrency to a major crutch in the industry, according to a new report.
USDT is basically a bridge between traditional currencies like the US dollar and decentralized digital currencies that run on open blockchain networks.
Brutus Independent Crypto Sales provided insights into the most popular stackable coins and the liquidity providers that supply them to cryptocurrency platforms.
According to the report, the US dollar released is mainly bought by only two market makers. Between 2014 and October 2021, Alameda Research and Cumberland received approximately $60.3 billion, which is about 55% of all outbound letters in history. According to Brutus, the nearest competitor incurred several hundred million US dollars.
Alameda Research, led by 29-year-old billionaire Sam Bankman-Freed, bought $36.7 billion, or nearly a third of Tether’s total product. Cumberland Global, the world’s largest cryptocurrency provider, ranks second with $23.7 billion in revenue. Cumberland is a subsidiary of DRW Holdings, which was founded in 1992 and is considered one of the largest financial traders in the world.
Protos reports that Tether’s Treasury has transferred $36.7 billion to Alameda Research, of which $31.7 billion (86%) was received in the past 12 months. This figure corresponds to approximately 37% of the total volume of USDT issued.
According to the report, Tether has sent more than $30.1 billion (87%) of USDT Alameda to cryptocurrency and derivatives exchange FTX. However, Alameda also has the wallets of several cryptocurrency exchanges. The company received $2.1 billion (6%) on Binance, $1.7 billion (5%) on Huobi, and $115 million on OKEx. The remaining $705 million was transferred to non-exchange addresses.
On the other hand, Cumberland received $23.7 billion. Last year alone, Tether received $17.6 billion (74%) from the Treasury secretary. This figure represents 22% of the total volume of USDT issued ever recorded.
Brutus highlights the importance of Cumberland as a liquidity source and market maker for Binance as it has been listed on the exchange since at least the beginning of 2019. Tether issued $18.7 billion (79%) of Cumberland USD to Binance, the rest of which went to other exchanges. …
The liquidity provider received $131.5 million (less than 1%) on Poloniex, $9 million on Bitfinex and another $30 million on Huobi and OKEx.
Tether remains the world’s largest stablecoin by market capitalization. Recently, however, regulators are investigating the company’s symbol. According to Cointelegraph, the US Commodity Futures Trading Commission has fined its sister cryptocurrency Tether and Bitfinex $41 million and $1.5 million, respectively, for violating the Commodity Exchange Act and the previous CFTC order issued on October 15, respectively.