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"We are in a scary place because if Tether is systematically integrated with the cryptography market infrastructure, trading multiple chips could fall."
Usually, such a discourse, based on the badumption that a large part of the cryptocurrency market depends on the dollar-indexed token called tether or USDT, may seem like a lucid realism (for hardened skeptics) or FUD (for real ones). believers).
But coming from Nelson Chen, this is part of a marketing discourse.
Chen, you see, is part of the team behind the Neutral Dollar, a stablecoin built on a basket of other stablecoins (dai, TrueUSD, Paxos Standard and USD Coin) expected to be launched next month . Thus, recent allegations by the New York Attorney General that cast further doubt on the dollar's support for the USD, the main stable business, have given him and other rival issuers the opportunity to highlight the differences between their offers.
"We have done that already and the news that has just happened has just shown that it is possible for these conversations to turn into something," said Chen. "Exchanges have already been focused on stable notes."
Chad Carascilla, CEO of Paxos, creator of the Paxos Standard token, also explained that the situation highlighted the opportunity offered to other stable fund providers.
"Now there is this problem of non-support that has bothered Bitfinex and Tether and I think everyone needs to step back," he said. "When we look at the magnitude of the opportunity … we actually look at it and say," hey, it's huge ".
Paxos was already discussing his stable budget with stock exchanges and other startups for some time, Carascilla said, but "is doing it even harder today."
He added:
"We're going to spend a lot of time talking to people outside the crypto world, payments [etc] by saying, let's change the way the value moves. "
Differentiating factors
The New York Attorney General's Office (NYAG) claims that Tether, the company behind the so-called USDT stablecoin, has lent nearly $ 1 billion to Bitfinex cryptocurrency to cover the $ 850 million loss. this last.
The bureau announced Thursday that it was looking for documents in Bitfinex and Tether detailing their plans to borrow up to $ 900 million from this issuer after Bitfinex apparently lost access. $ 850 million held by Crypto Capital Corp., currency converter.
According to a statement released later by Bitfinex, Crypto Capital told the stock exchange that its funds had been seized by the US, Polish and Portuguese authorities (although Bitfinex's lawyers had previously told the NYAG office that they did not believe this story).
On Tuesday, the US Justice Department indicted two people indicted for bank fraud, claiming that they were providing services to Global Trading Solutions, a company allegedly linked to Crypto Capital.
The stock market tells its shareholders that it will take him a few weeks to unlock the funds.
The crypto markets lost $ 10 billion in the hours following the announcement of the new, millions going to USDT competitors.
While stable issuers take advantage of the Tether news to promote their own cryptocurrencies as viable alternatives to the USDT, the latter is, oddly enough, still traded close to home; According to Kraken data, the chip was traded close to $ 0.98 all day Monday.
Several stable POS vendors quickly claimed that, unlike Tether, they had no conflict of interest with the functioning of their stable coins. (Tether and Bitfinex are both exploited by iFinex, which may mean that the first is not independent and maybe could not refuse what seems to be a terrible trade.)
Carascilla told CoinDesk that "having a fixed budget is very important for the stability of the system," while TrustToken co-founder Rafael Cosman explained that a third-party trust company is responsible for retention of user funds.
"This gives TrueUSD token holders the strongest legal protection possible, as true true owners of TrueUSD escrow funds," Cosman said.
Cosman added that regular certificates (provided by TrustToken, Paxos, Center and Gemini, for example) are another step that stable issuers can follow to create a climate of trust with users. (It is well known that Tether failed to produce an audit, which he had promised to do over a year ago, two attestations were obtained, nor by an audit firm; by Deltec Bank & Trust, which confirmed that it had close to $ 2 billion in badets last November and another in the Freeh Sporkin & Sullivan law firm in June).
Stablecoin's issuers must commit to standards, Cosman said, concluding:
"Building trust with traders is not only important for the management of a successful business stablecoin, it is also critical to the future growth of the cryptocurrency industry."
Bitfinex image via Shutterstock
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