Alameda Research: The Crypto Firm Behind 47% of USDT Creation

Alameda Research, a major crypto trading firm, has been revealed to have a significant role in the creation of new USDT tokens. According to Coinbase director Conor Grogan, Alameda has minted 39+ billion USDT tokens since September 2020, which is about 47% of the total supply.

Onchain data shows that Alameda was responsible for minting $39.55B of USDT, a number that is 47% of Tether's circulating supply today

A previous report by Protoss estimated the number at around $36.7B; I was able to update these figures with additional wallets I found pic.twitter.com/fYBvGAYlFd

— Conor (@jconorgrogan) October 9, 2023

USDT, or Tether, is a stablecoin that is supposed to be equal to the US dollar and is widely used in the crypto market. However, USDT has been criticized for its lack of transparency and accountability. Many skeptics and regulators doubt that Tether has enough fiat reserves to back up its USDT tokens.

Alameda’s role in USDT minting has sparked controversy and suspicion in the crypto community. Alameda is also the parent company of FTX, a leading crypto exchange that offers various trading products and services. Some people suspect that Alameda could be using USDT to manipulate the market or to boost its own trading volume.

However, Alameda has denied any wrongdoing and said that it is only providing liquidity and arbitrage opportunities for the market. Alameda’s CEO, Sam Bankman-Fried, said that his firm is not creating USDT out of thin air, but rather exchanging USDC, another stablecoin, for USDT at a small premium. He also said that Alameda does not hold any USDT tokens and that it is not affiliated with Tether.

Alameda’s stake in USDT minting has revealed a hidden aspect of the crypto market and raised questions about the impact and regulation of stablecoins. As USDT’s supply continues to grow, so does its influence and risk.