- Analysts reveal their fears concerning the level of exposure Tether has to the FTX’s crash.
- Meanwhile, Tether has released a blog statement explaining how the failure of Alameda Research doesn’t pose any risk to Tether.
Prominent Twitter user, @coffeezilla, believes that Tether would be the biggest casualty in the FTX crash.
The self-styled internet detective revealed that the situation could get worse given that Alameda Research was the biggest user of Tether. Using a short Twitter thread, @coffeezilla posted a chart showing crypto firms that uses Tether the most. Unsurprisingly, Alameda research topped the list with $36.65 billion.
Without providing further details, @coffeezilla believes that Alameda Research was utilizing USDT for profits. Meanwhile, @coffeezilla isn’t the only one having fears of a possible risk of Tether to the FTX contagion. Another prominent Twitter user, @metabad, provided further insights regarding the matter.
@metabad argued that it is more difficult to track Tether inflows than outflows. He further explained that over 80 percent of USDT that ever returned to Tether’s treasury were from crypto exchanges. By comparison, there have been outflows of more than 70 percent of USDT ever issued.
According to @metabad, it makes it practically impossible to identify the sender of those transactions. He cited examples of how bankrupt crypto firms, Three Arrows, and Nexo were also using USDT for profits before the crash of the Terra network, where they had invested huge sums.