Crypto firm Cumberland deployed $1b Tether in 8 days 

Market maker Cumberland may have bought the dip after data showed the company was moving millions of Tether stablecoins to centralized exchanges.

According to LookOnChain data, Cumberland has sent over $1 billion worth of Tether (USDT) to decentralized exchanges like Binance, Coinbase, and Kraken since August 6.

Market makers provide liquidity in financial ecosystems and sometimes adopt an asset accumulation strategy to buffer profits or income. Cumberland’s CEX deposit frenzy began immediately after the global market crash on August 5, when Bitcoin (BTC) fell below $50,000 and the total cryptocurrency market cap fell to $1.8 trillion.

Cryptocurrency prices have since recouped some of their losses, with Bitcoin (BTC) topping $61,000 at the time of writing. The total crypto market cap is also up 12% in the past week, according to TradingView. This increase suggests that Cumberland could already be in the money if the market maker uses its $1 billion USDT to purchase a range of cryptocurrencies.

BTC 24-hour chart on August 13 | Source: crypto.news

Meanwhile, stablecoin issuer Tether continued its minting spree. The payments company created $1 billion worth of new USDT tokens on Ethereum (ETH), bringing its total for the year to over $32 billion.

The stablecoin complex has surpassed $160 billion in market value, but firms are paying pennies to release new tokens into circulation. Arkham confirmed that Tether paid less than $1 in on-chain fees for its recent restocking of Ethereum inventory.