Rumors of Alameda Research’s attempts to short USDT appear on the web

Users accuse Sam Bankman-Fried of causing chaos in the market

10.11.2022 - 15:20

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3 min

What’s new? Rumors surfaced online that Alameda Research (as well as the FTX exchange owned by Sam Bankman-Fried) began shorting the USDT stablecoin from the issuer Tether. In parallel, representatives of the decentralized autonomous organization (DAO) of the TRON blockchain announced that they are taking measures “to safeguard the overall blockchain industry” and will buy 300 million USDT off the market.

To safeguard the overall blockchain industry and crypto market, TRON DAO Reserve will purchase $300,000,000 #USDT in the market. — TRON DAO Reserve (@trondaoreserve) November 10, 2022

What is known about Alameda’s actions? A Twitter user nicknamed Astromagic cited data from blockchain explorer Etherscan with a pattern of shorting the USDT by a wallet allegedly owned by Alameda as evidence. According to him, the company is shorting the asset by issuing USDC and borrowing on the Aave platform with a further swap of USDT to USDC stablecoin on the Curve platform. On November 10, USDT dropped to $0,9818, later rising to $0,9999.

so alameda is trying to short $usdt?>supply USDC on aave>borrow USDT on aave>swap USDT to USDC on curvedafuq man...https://t.co/F3tQvDMfF8 — astromagic (Trust_No_One) (@astro__magic) November 10, 2022

The TRON DAO Reserve (TDR) intends to buy $300 million worth of USDT in the market to keep the asset stable. Perhaps these actions are also aimed at restoring the peg of TRON’s own stablecoin, USDD, which in the past 24 hours has lost its parity against the US dollar, dropping to $0,97666.

Earlier, TRON founder Justin Sun said that jointly with the Huobi exchange he is ready to provide the exchange of TRX, BTT, JST, SUN, and HT tokens for FTX’s customers. After that, the rate of Huobi Token on FTX rose by 581%.

For what led to the lightning-fast collapse of the FTX exchange and how events will develop further, read the GetBlock Magazine’s article.

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