Finally, There's Competition For Tether: GUSD, Or Gemini US Dollar, Just Launched On Ethereum By Winklevoss Brothers
One of the most common market manipulation accusations against Bitcoin was related to the "loose canon" named Tether.
For those of you not knowing what Tether is, well, it's a hard pegged crypto-currency which aims to be a "stablecoin" (like SBD on the STEEM blockchain). Instead of buying Bitcoin directly with USD, you first buy Tether with USD and then buy Bitcoin with Tether. All major crypto exchanges are using Tether-based trading pairs.
The biggest point against Tether was the fact that it wasn't properly audited. In other words, the amount of circulating Tether couldn't be officially matched to some real US Dollar reserve somewhere (that would enforce the 1 to 1 peg). That led to all kind of speculations about the real amount of Tether out there and, subsequently, about the real price of Bitcoin.
Well, those days are over, because as of yesterday, there is a new "stablecoin" in town: GUSD. It literally means "Gemini US Dollar" and it was issued by the Winklevoss' brothers Gemini exchange. It's an ERC20 token - meaning it lives on the Ethereum blockchain - and, most importantly, seems to be properly audited.
Here's the most important excerpt from the launch announcement:
The U.S dollars that correspond to the Gemini dollars issued and in circulation will be held at a bank located in the United States and eligible for FDIC “pass-through” deposit insurance, subject to applicable limitations. In addition, the U.S dollar deposit balance will be examined monthly by an independent registered public accounting firm to verify the 1:1 peg.
In my humble opinion, this is the biggest bullish news that the markets could receive (in the absence of an approved Bitcoin ETF, that is).
Obviously, the markets didn't price this in, but I expect relevant moves very soon.
I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua.
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Great news!
...or not
If not, why not?
Don't. Too many tether-wannabees right now. I sence market manipilations if these guys grow too much.
Plus additional regulators attention.
Thanks for the info, please ild like to ask, is there a platform you recommend for purchasing crypto with local fiat?
It is great news.
Competition to USDT from a coin based in the US introduces new fresh air to the crypto markets and brings confidence to investors.
I presume it will not be the only one to come in the next months.
Looks like Gemini is not the only one.
https://cointelegraph.com/news/blockchain-trust-company-paxos-launches-ny-regulator-approved-usd-backed-stablecoin
Thanks for this news. Indeed, we're getting closer and closer to the breakout...
I got spooked out of Tether so its nice to have a new non-fiat way to trade in and out of crypto. Crypto currencies move so much in lock step, you need this trading option without the hassle of getting in and out of fiat. Plus scams like tether need to go away to build confidence in crypto space. Great news!
Should hopefully make them get their act together or face the consequences
From your analysis and explanation on the new tether alternative I just hope it will be able to live up it it's expectation
More useless coins that we don't need
Yeah biggest bullish news after a long time indeed...
Let see how the causious market reacts to it.
thanku so much sir for telling us about tether like u said first we need to buy tether if we want to buy bitcoin and every major crypto exchange currency is using tether for pair program
great for our knowledge and yeah it wasnt that much stable thats the reason of declining it ..
.. great news about GUsd gemini
now more stable coins erc20 tokens will come for sure in future
Sir you are awesome informative senior here @dragosroua lots of love for you 😍😍
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