Finally, There's Competition For Tether: GUSD, Or Gemini US Dollar, Just Launched On Ethereum By Winklevoss Brothers

in bitcoin •  last month

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.


Dragos Roua


Wanna know when you're getting paid?

I know the feeling. That's why I created steem.supply, an easy to use and accurate tool for calculating your Steemit rewards

It's free to use, but if you think this is a useful addition, I'd appreciate your witness vote.

Thank you!


Psst: new to Steemit? Start Here


Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

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.

·

Thanks for this news. Indeed, we're getting closer and closer to the breakout...

Should hopefully make them get their act together or face the consequences

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!

From your analysis and explanation on the new tether alternative I just hope it will be able to live up it it's expectation

Yeah biggest bullish news after a long time indeed...
Let see how the causious market reacts to it.

More useless coins that we don't need

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

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.

great for our knowledge and yeah it wasnt that much stable thats the reason of declining it ..
.. great news about GUsd gemini

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.

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 😍😍

Coins mentioned in post:

CoinPrice (USD)📉 24h📉 7d
BTCBitcoin6359.738$0.4%-12.86%
ETHEthereum194.803$-2.15%-32.35%
SBDSteem Dollars0.969$1.5%-5.34%
STEEMSteem0.751$-4.51%-25.16%
USDTTether1.006$0.45%0.68%

Lots of stable coin are coming. But they have only one problem high transaction fees @dragosroua

Posted using Partiko iOS

Tether is getting a hard competition. Hope so the manipulation should decrease now @dragosroua

Agree on the bullish part!

Also, your New to Steem link isn't working. Just a heads up.

Posted using Partiko Android

That is incredibly good news for the crypto world. One of the biggest vulnerabilities has been the fact that you had to buy tether to get most of the smaller coins. With a competitor that is actually going to do audits, people will have more assurance that their money is going to be safe.

Not investment advice, but I'm still definitely bearish on Tether. Gemini could be a huge boon. Looking forward to getting more info on it.

@dragosroua You have received a 100% upvote from @intro.bot because this post did not use any bidbots and you have not used bidbots in the last 30 days!

Upvoting this comment will help keep this service running.