4 ms·
Most likely they trade out of the USDT position shortly after creating it which would minimise their exposure.
by Wizrad 5y ago
Most likely they trade out of the USDT position shortly after creating it which would minimise their exposure.
- gringoDan 5y agoI don't think this would be the case, since these firms are actively market-making using USDT. I.e., they're not just turning fiat into crypto using USDT, but they are also market-making in USDT/BTC, USDT/ETH, etc. My understanding is that Alameda is trading with fairly high frequency, so they would keep funds in USDT in order to facilitate those trades. Further, the on-chain data suggests that they don't trade out of USDT to USD – otherwise we'd see high corresponding USDT burns.