{"id":62944,"date":"2022-06-15T14:11:42","date_gmt":"2022-06-15T11:11:42","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=62944"},"modified":"2025-09-05T21:04:12","modified_gmt":"2025-09-05T18:04:12","slug":"cumberland-market-maker-warned-of-the-collapse-of-one-of-the-leading-stablecoins","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/cumberland-market-maker-warned-of-the-collapse-of-one-of-the-leading-stablecoins\/","title":{"rendered":"Cumberland market maker warned of the collapse of one of the leading stablecoins"},"content":{"rendered":"<p>Over-the-counter cryptocurrency platform Cumberland did not rule out that the next asset at risk of a crash would be one of the leading stablecoins.<\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\">\n<p dir=\"ltr\" lang=\"en\">The next major shoe to drop would be a top-2 stablecoin. If that happens, there will be generational buying opportunities in BTC &#038; ETH. If not, the market probably calms down for a while. \u2014<a href=\"https:\/\/twitter.com\/jvb_xyz?ref_src=twsrc%5Etfw\">@jvb_xyz<\/a><\/p>\n<p>\u2014 Cumberland (@CumberlandSays) <a href=\"https:\/\/twitter.com\/CumberlandSays\/status\/1536716031430991872?ref_src=twsrc%5Etfw\">June 14, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;The next negative event will be the collapse of a top-2 stablecoin. If that happens, there will be buying opportunities in BTC and ETH. If not, the market is likely to calm down for a while,&#8221; Cumberland predicted.<\/p>\n<\/blockquote>\n<p>As of writing, the top two stablecoins by market capitalization were USDT ($71.18 billion) and USDC ($54.3 billion).<\/p>\n<p>Cumberland also noted that the OTC desk is currently processing &#8220;the largest flows of the year.&#8221;<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">After a period of relative calm, we are now seeing the largest flows of the year through our OTC desk. This is a bit unexpected, and likely a signal that we are nearing either a local bottom, or _the_ bottom.<\/p>\n<p>\ud83e\uddf5\ud83d\udc47<\/p>\n<p>\u2014 Cumberland (@CumberlandSays) <a href=\"https:\/\/twitter.com\/CumberlandSays\/status\/1536714435091480577?ref_src=twsrc%5Etfw\">June 14, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;This is a bit unexpected and probably signals approaching either a local bottom or the bottom,&#8221; the thread says.<\/p>\n<\/blockquote>\n<p>Cumberland was founded by DRW in 2014 and, according to some reports, is the largest liquidity provider in the crypto industry thanks to the USDT issuer Tether. In 2021, media reported that the market maker and Alameda Research <a href=\"https:\/\/forklog.com\/en\/news\/media-alameda-research-and-cumberland-take-the-lions-share-of-usdt-issuance\">bought more than two-thirds of the total issuance<\/a> of the stablecoin.<\/p>\n<p>In comments, Placeholder venture partner Chris Burniske noted that he is watching USDT closely. He called the odds of a collapse of this stablecoin low, but admitted that he is more concerned about the current situation &#8220;than ever.&#8221;<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">I continue to give <a href=\"https:\/\/twitter.com\/search?q=%24USDT&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$USDT<\/a> failure low odds, but I\u2019m admittedly more concerned than I\u2019ve ever been on it. <\/p>\n<p>Used to dismiss Tether FUD immediately.<\/p>\n<p>\u2014 Chris Burniske (@cburniske) <a href=\"https:\/\/twitter.com\/cburniske\/status\/1536963604020228096?ref_src=twsrc%5Etfw\">June 15, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;The only reason I&#8217;m talking about this now is that I\u2019m being pinged about it too often to ignore. And if Risk = Probability x Consequence, the consequences here are extremely serious if this happens,&#8221; Burniske wrote.<\/p>\n<\/blockquote>\n<p>On May 12, the price <a href=\"https:\/\/forklog.com\/en\/news\/usdt-stablecoin-deviates-from-its-peg-to-the-us-dollar\">USDT tested the $0.94 level<\/a> amid market turbulence, while USDC and BUSD looked relatively stable. Paolo Ardoino, Tether\u2019s technical director, said the company\u2019s reserves would be enough to redeem all assets at a 1:1 ratio with the US dollar.<\/p>\n<p>On June 13, Tether said that <a href=\"https:\/\/forklog.com\/en\/news\/tether-says-celsius-incident-did-not-affect-usdt-reserves\">negative events with Celsius did not affect<\/a> the financial stability of the USDT issuer.<\/p>\n<p>Subscribe to ForkLog&#8217;s channel on YouTube!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Over-the-counter cryptocurrency platform Cumberland did not rule out that the next asset at risk of a crash could be one of the leading stablecoins.<\/p>\n","protected":false},"author":1,"featured_media":62945,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1786,807],"class_list":["post-62944","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-cumberland","tag-stablecoins"],"aioseo_notices":[],"amp_enabled":true,"views":"15","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/62944","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=62944"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/62944\/revisions"}],"predecessor-version":[{"id":62946,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/62944\/revisions\/62946"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/62945"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=62944"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=62944"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=62944"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}