Stablecoin Market Woes; Winklevoss’s Gemini Dollar Hits $1.19 While Tether Drops to $.86
Winklevoss-Backed Stablecoin’s Price Gets Above $1 USD As Tether’s Market Cap Plunges
A new stablecoin has broken its peg with the U. S. Dollar. However, this time the token is not trading under one dollar and well above it instead. According to CoinMarketCap, the Gemini Dollar (GUSD), which was issued by Gemini, a company that is owned by the Winklevoss brothers, has reached an all-time high of $1.19 USD.
The currency has broken its peg on Monday when it went up to $1.14 USD and it continued to rise today.
This is great news for GUSD, which was released early in September by Cameron and Tyler Winklevoss. The token was approved by the New York Department of Financial Services, which made it more trustworthy than Tether. Even if “officially” the price is pegged to the USD, GUSD was created to provide liquidity for traders and it actually is proving to be more valuable than people thought initially.
Tether Is Losing Its Market
Tether (USDT), however, has broken the peg in the opposite direction. The company has seen its fall to an 18-month low of $0.869. While Tether has regained its value, its market cap has diminished, which may seem to indicate that the supply of tokens has declined. CoinMarketCap affirms that about 2.26 billion USDT remain in circulation out of a total of 3 billion.
The information from CoinMarketCap has shown that the number of tokens has been diminished at regular intervals, possibly meaning that someone is taking Tether out of the market. It is well-known that the supply of USDT diminished when someone redeems the tokens, but who is doing it?
Bitfinex’s communications director, Kasper Rasmussen, has talked to Coindesk and affirmed that when the supply of tokens is above a certain level, the company gives them back to Tether so they are redeemed against fiat USD. This would lower the number of Tether available. Basically, people seem to be getting rid of Tether and then Bitfinex is sending the tokens back to the company.