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It could have something to do with the arrival (soon to be a flood) of much-better financed and regulated stable coins such as the Gemini dollar: To date, ther

by apo 8y ago

It could have something to do with the arrival (soon to be a flood) of much-better financed and regulated stable coins such as the Gemini dollar: To date, there has been no trusted and regulated digital representation of the U.S. dollar that moves in an open, decentralized manner like cryptocurrencies. Enter the Gemini dollar — a stable value coin (often called a “stablecoin”) that is (i) issued by Gemini, a New York trust company, (ii) strictly pegged 1:1 to the U.S. dollar, and (iii) built on the Ethereum network according to the ERC20 standard for tokens. ... https://medium.com/gemini/gemini-launches-the-gemini-dollar-62787f963fb4 https://medium.com/gemini/gemini-launches-the-gemini-dollar-...

JumpCrisscross 8y ago
> regulated stable coins such as the Gemini dollar I still don't see how they satisfy their anti-money laundering requirements. You can't have a token which is (a) anonymously traded, (b) freely redeemable for hard currency, and (c) compliant. Even if you modify (b) to "redeemable with approved KYC paperwork for hard currency," you still have the problem that you sold a token for cash to one person, redeemed it for cash to another person, and have no clue what happened in the middle. One could completely remove (b), i.e. have a non-redeemable currency. But now you're closer to the precedent set by Liberty Reserve [1], in that the people who most want anonymous electronic dollars over real electronic dollars are people laundering money. [1] https://www.nytimes.com/2013/05/29/nyregion/liberty-reserve-operators-accused-of-money-laundering.html https://www.nytimes.com/2013/05/29/nyregion/liberty-reserve-...
- A2017U1 8y ago
  > anonymously traded Where exactly does anyone claim that? They have a team of lawyers and access to all the regulators by virtue of being such a huge exchange. Do you honestly believe they haven't consulted widely on this?
  - joshstrange 8y ago
    > They have a team of lawyers and access to all the regulators by virtue of being such a huge exchange. Do you honestly believe they haven't consulted widely on this? I'll get back to you in a few days when I finish laughing... MtGox was also a huge exchange, I think the only sane thing to do at this point with Cryptos are to assume all exchanges are stupid, aren't solvent, haven't consulted lawyers, and/or don't know the law until it is proven otherwise. Exchanges that don't fit the criteria are the exception not the rule.
    - A2017U1 8y ago
      The sheer ignorance surrounding cryptomarkets is quite staggering. I'm first to call a good part of it a sham but simply writing off everyone is naive, low effort discourse. Gemini is owned by the billionaire Winklevoss twins, its based in and regulated by NY, the most notoriously heavy handed cryptocurrency jurisdiction on Earth. Many exchanges won't even do business with customers from NY. Think it's fair to say that they're not "stupid"
snarf21 8y ago
It is not just Gemini, there have been three other new big "stablecoins" launched in the last month. USDC from Circle, CarbonUSD from Carbon, PAX from Paxos and lots of even smaller players entering the market.
tlrobinson 8y ago
If USDT is fully backed by real USD that shouldn’t affect the price.

by apo 8y ago

JumpCrisscross 8y ago

> regulated stable coins such as the Gemini dollar I still don't see how they satisfy their anti-money laundering requirements. You can't have a token which is (a) anonymously traded, (b) freely redeemable for hard currency, and (c) compliant. Even if you modify (b) to "redeemable with approved KYC paperwork for hard currency," you still have the problem that you sold a token for cash to one person, redeemed it for cash to another person, and have no clue what happened in the middle. One could completely remove (b), i.e. have a non-redeemable currency. But now you're closer to the precedent set by Liberty Reserve [1], in that the people who most want anonymous electronic dollars over real electronic dollars are people laundering money. [1] https://www.nytimes.com/2013/05/29/nyregion/liberty-reserve-operators-accused-of-money-laundering.html https://www.nytimes.com/2013/05/29/nyregion/liberty-reserve-...

A2017U1 8y ago
> anonymously traded Where exactly does anyone claim that? They have a team of lawyers and access to all the regulators by virtue of being such a huge exchange. Do you honestly believe they haven't consulted widely on this?
- joshstrange 8y ago
  > They have a team of lawyers and access to all the regulators by virtue of being such a huge exchange. Do you honestly believe they haven't consulted widely on this? I'll get back to you in a few days when I finish laughing... MtGox was also a huge exchange, I think the only sane thing to do at this point with Cryptos are to assume all exchanges are stupid, aren't solvent, haven't consulted lawyers, and/or don't know the law until it is proven otherwise. Exchanges that don't fit the criteria are the exception not the rule.
  - A2017U1 8y ago
    The sheer ignorance surrounding cryptomarkets is quite staggering. I'm first to call a good part of it a sham but simply writing off everyone is naive, low effort discourse. Gemini is owned by the billionaire Winklevoss twins, its based in and regulated by NY, the most notoriously heavy handed cryptocurrency jurisdiction on Earth. Many exchanges won't even do business with customers from NY. Think it's fair to say that they're not "stupid"

snarf21 8y ago

It is not just Gemini, there have been three other new big "stablecoins" launched in the last month. USDC from Circle, CarbonUSD from Carbon, PAX from Paxos and lots of even smaller players entering the market.

tlrobinson 8y ago

If USDT is fully backed by real USD that shouldn’t affect the price.