How is USDT minted?
From April to November 2021, Alameda, which was still a capital giant at the time, minted a total of US$39 billion in USDT, accounting for 47% of the total circulating supply of USDT.
47% of the total USDT circulation volume!
This should have been earth-shattering news, but in 2021 everyone is immersed in the FOMO state brought about by DeFi summer. Almost no one in the market cares about this. Even if there are occasional voices that doubt Alameda, they will be labeled as "thinking". The crime of "taking advantage of the popularity of giants".
There is something strange here
Obviously only USD cash can mint USDT, so how did SBF mint such an exaggerated amount of stablecoins? How could he have a massive $39 billion in cash?
It turns out that in order to expand its business, Tether has long launched the ability to use Tokens as collateral.
The academic master SBF, who has many clever ideas, took advantage of the scheme and worked hard to negotiate with Tether that FTT could be used as collateral to mint USDT. Next is the showy operation:
1. Crazy mint a completely free exchange platform currency - FTT on the FTX exchange
2. Mortgage FTT to Tether in exchange for USDT
3. Use hot USDT to buy FTT in the secondary market, and the price of FTT continues to rise.
4. Continue to mint FTT and mortgage it to Tether
It is precisely because of this arrogant process of stepping on the left foot and reaching the sky with the right foot that the price of FTT continues to rise, and it also creates a thunder that can never be eradicated in the current Web3 world.
Accept that this world is made up of grass-roots teams
Accept that we are all leeks played by gamblers
