Tether (USDT) and Gemini’s Dollar (GUSD) Both See Rejection for the Neutral Dollar Project
The Neutral Dollar Project describes itself as a superior digital dollar. According to the platform,
“By aggregating a basket of other stablecoins, the Neutral Dollar generates a lower volatility token with a more subdued risk profile than any individual stablecoin today.”
The platform shared with Crypto Briefing that neither GUSD nor Tether comports with the platform’s requirements for being included in the basket. The platform is backed by four stablecoins at this point, which includes Circle (USDC), PAX, TrueUSD, and DAI. According to Mathew Branton, the platform’s CTO, a combination of these four tokens providers an asset with superior value.
He shared in an email with Crypto Briefing,
“Robust testing illustrated that by combining these particular stablecoins together, we reduce the overall risk exposure to one individual coin’s volatility and can produce a superior token that is the most stable.”
As for the lack of inclusion concerning USDT and GUSTD, he stated
“Our testing found that the inclusion of GUSD and USDT did not procure diversification or liquidity benefits at this early stage.”
The platform is focused on providing its users with transparency. Those who use the platform can redeem their tokens for stablecoins at any time. It is possible that the issue with USDT and GUSD is that they have never been audited by a professional firm.