Tether, a token plagued with controversy and conspiracy is dead for good according to Chris Coney, the host of The Cryptoverse. The reason he thinks this is that the Gemini Dollar by the Winklevoss twins just received approval from the US regulators.
The Gemini Dollar
The Gemini Dollar is an ERC20 stable coin, which is a blockchain-powered token that is backed by fiat currency, the US Dollar. This helps to stabilize the value of the token stable. According to Gemini, the token will maintain a 1:1 ratio with the dollar at all times. Thus, a Gemini Dollar will always be equal to a US dollar.
The reason why the Gemini Dollar is different from other stablecoins, especially Tether, in that it is the first regulated stablecoin in the world. At least that is what Gemini states. Essentially, it means that the US regulators will have oversight over the coin, which will make it a more trustworthy and reliable crypto coin for potential users.
Why Does The Gemini Dollar Spell Doom For Tether?
The main reason why Chris Coney thinks that the Gemini Dollar will be the end of Tether is accountability. According to the host, the Gemini Dollar will undergo monthly audits by regulators in New York. This will ensure that the supply will always be equal to the USD in the Gemini reserves.
These monthly audits are major departures from the accountability practices by Tether. In the past, the Tether has faced numerous audit delays. They will say an audit will occur at this time and then postpone it for months. The result is that transparency about Tether is almost non-existence. Besides that, nobody knows whether Tether really has the supply of US dollars equal to the amount of Tether the company has.
This lack of transparency is a major sticking point in the crypto community. With its huge issuance of Tether coins, there is no word whether they will also grow the fiat reserves. In essence, many believe that Tether is printing money, which defeats the purpose of the blockchain.
In fact, this belief is so powerful that a lot have accused Tether of being behind recent crypto price bubbles and generally manipulating the crypto market. The main reason for this is that the price bubbles often mysteriously happen with the issuance of new Tether tokens.
The Cryptoverse is a YouTube Channel with almost 50 thousand subscribers. It is hosted by Chris Coney and explores the hottest topics around the crypto world. Coney offers his views and thoughts on various subjects. Besides that, he presents the facts so that audiences can make their own conclusions.
This show is a great way to gain a grasp of the crypto world if you are new to it. Besides that, crypto experts can also benefit from a new source of knowledge by subscribing to the show. The best part about it is that you will always get to learn about the latest news in the crypto world in good time.