The Cryptoverse: Why Tether Is Now Dead for Good
Tether, the token plagued with conspiracy and controversy, is dead for good. At least, that’s what The Cryptoverse host Cris Coney thinks now that the Winklevoss’ Gemini Dollar has received approval from US regulators.
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The Gemini Dollar: What It Is and What It Does
The Gemini Dollar is an ERC20 stablecoin, a blockchain-based token backed by a fiat currency — in this case the US dollar — as a way to keep the token value stable. According to Gemini, their token will maintain a 1-to-1 ratio with the US dollar, meaning one Gemini Dollar will always be equal to one US dollar.
What makes the Gemini Dollar unique from other stablecoins — mainly Tether — is that it is “the world’s first regulated stablecoin,” according to Gemini.
That means the token will have oversight from US regulators, which may make it seem more trustworthy and reliable in the eyes of some potential users.
Why Does the Gemini Dollar Mean Death for Tether?
There is one major reason why The Cryptoverse host Chris Coney believes the Gemini Dollar will bring about the end of Tether: accountability.
According to Coney, the Gemini Dollar will be subjected to monthly audits by New York regulators to ensure their supply remains equal to the amount of USD in Gemini’s reserves.
These monthly audits depart from Tether’s accountability practices, which have been plagued with audit delays, leading to no real transparency and no knowledge as to whether or not the Tether supply is equal to its fiat reserves.
That lack of transparency has put Tether in a negative light in the crypto community. With its massive issuance of new tokens, and no word on whether it has increased its fiat reserves, many believe Tether is essentially printing money. These suspisions are so strong, in fact, that many have credited Tether with recent crypto price bubbles, since they seem to correlate with new issuances of Tether tokens.
About The Cryptoverse
On The Cryptoverse, host Chris Coney explores the hottest topics in the blockchain and cryptocurrency world. Coney provides his viewers with his thoughts on the subjects, while also presenting the facts so his audience can come to their own conclusions. To see Coney tackle the biggest topics of the day, subscribe to The Cryptoverse on YouTube.
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