Whalepool Accuses Stablecoins of not Having Proper Audits; Cameron Winklevoss Fires Back

Whalepool Accuses Stablecoins of Not Having Proper Audits; Cameron Winklevoss Fires Back

Stablecoins have been in the news during the last weeks for different reasons. Tether (USDT) has been accused of not being full audited and of not having the dollars necessary to back each USDT issued.

According to the twitter user Whalepool, not a single USD-backed stablecoin has provided full audits on the funds they have. On Twitter, the user wrote that TUSD (TrueUSD), GUSD (Gemini Dollar), PAX (Paxos), and USDC (Circle) have not provided full audits.

PSA: Not a single USD-backed stablecoin provides full audits, including TUSD (TrueUSD), GUSD (Gemini), PAX (Paxos), and USDC (Circle):https://t.co/k9netMFaFMhttps://t.co/UsxVFnxvu9https://t.co/Tycg5Ln7vfhttps://t.co/VxkgZXYWHP

Just attestations proving reserves, like Tether pic.twitter.com/G2s2WDbMAN

— Whalepool (@whalepool) October 16, 2018

Whalepool has also provided some images of these issues. For example, in the case of Gemini Trust Company, the information provided ‘has not been examined by the Company’s Independent Accountant,’ reads the Section III of the Independent Accountants’ Report on Gemini Dollar and Cash balances for September 2018.

Similar situations are shown in the other stablecoins. Most of these coins have been issued recently, such as the Gemini Dollar and the USDC backed by Circle.

However, Cameron Winklevoss decided to answer that tweet. He said that,

“Whalepool decided to continue with the tradition in the market of going out without ‘any expertise or knowledge in an area and pretend to know’ what they are talking about.”

W/ that said @whalepool thank you for continuing the long-standing tradition in crypto where the default position is to go out half-cocked w/out any expertise or knowledge in an area and pretend to know what you are talking about.

— Cameron Winklevoss (@winklevoss) October 17, 2018

Cameron Winklevoss continued his conversation with other users explaining that it is not possible to perform an ‘audit’ on a stablecoin. He said that it is necessary to use an ‘atesation,’ and only sophisticated market participants understand that.

Whalepool tried to explain that they tried to ‘illustrate’ that stablecoins do not issue full audits, but instead, they perform attestations. After it, Whalepool said that they want to fight Tether FUD and misinformation in the market.

However, Cameron said that Tether is a product that is issued by an unlicensed issuer and does not disclose where the fiat to back each USDT is located.

Additionally, Larry Cermak said that although they might not be able to get a full audit, these stablecoins are hiring real auditing firms. USD//C works with Grant Thornton, Gemini Dollar with BPM, Paxos Standard with Withum and TrueUSD with Cohen & Company.

Cameron ends up saying that Whalepool is a ‘daytrader’ and that they have not worked at a registered public accounting firm to talk about these specific topics.

Clearly, stablecoins have been involved in different discussions about the funds they all have and whether they issue the same amount of tokens on the market. Tether (USDT) has been attacked several times for this issue and in the last days, it has experienced some price volatility.