4 ms·

This is uninformed. What do you call USDC, which is directly redeemable for US Dollars by anyone with a Coinbase account? Every USDC is backed by one USD of dep

This is uninformed. What do you call USDC, which is directly redeemable for US Dollars by anyone with a Coinbase account? Every USDC is backed by one USD of deposits in a US-based bank. USDC is a stablecoin, and there are plenty of others out there.

keymone 5y ago
redeemable until it's not.
- TameAntelope 5y ago
  But given the monthly audits conducted, "it's not" is not very likely to happen at all. The auditor would have to be actively lying or misrepresenting for USDC and Gemini both for something like that to happen. Much more likely a smart contract somewhere fails than USDC/Gemini (the only two I know that do full audits to ensure 1:1 dollar backing, ignoring USDT). There just isn't much risk there, hence there not being much (any) profit trading stablecoin.
  - keymone 5y ago
    what happens if gemini goes belly up like mtgox? are the assets backing the peg isolated from bankruptcy event?
  - spiralx 5y ago
    There are no monthly audits. They have "attestations" which are not the same thing.
  - loeg 5y ago
    > But given the monthly audits conducted, "it's not" is not very likely to happen at all. The auditor would have to be actively lying or misrepresenting for USDC and Gemini both for something like that to happen. USDC has regular attestations, not audits. It's an important distinction.
    - TameAntelope 5y ago
      Would an audit even make sense here? Based on some Googling, I found this as an explanation for the difference: > One of the things to keep in mind to differentiate each of these services is that audits are performed to discover data, risks, or compliance issues that may not have been known before the audit took place, and attestation is to evaluate and review how true the data or information is when compared to a stated purpose, internal control or system. [0] Based on that reading, it sounds like an audit wouldn't make sense here, since we're not trying to discover anything new, just asserting a statement to be true. [0] - https://www.ispartnersllc.com/blog/defining-attestation-assurance-auditing/
Marazan 5y ago
You can get Circle to give you USD for USDC? How? Are you talking about selling USDC to another baghholder? Thats not 'redeeming' that's trading.
- stepanhruda 5y ago
  Yes, Circle or Coinbase will redeem them for you. Similarly you can close a position on DAI and burn the tokens.
rank0 5y ago
*redeemable with permission from Coinbase and provided they follow through on their promises of 1-1 backing
beervirus 5y ago
A stablecoin that hasn’t lost its peg yet.

keymone 5y ago

redeemable until it's not.

TameAntelope 5y ago
But given the monthly audits conducted, "it's not" is not very likely to happen at all. The auditor would have to be actively lying or misrepresenting for USDC and Gemini both for something like that to happen. Much more likely a smart contract somewhere fails than USDC/Gemini (the only two I know that do full audits to ensure 1:1 dollar backing, ignoring USDT). There just isn't much risk there, hence there not being much (any) profit trading stablecoin.
- keymone 5y ago
  what happens if gemini goes belly up like mtgox? are the assets backing the peg isolated from bankruptcy event?
- spiralx 5y ago
  There are no monthly audits. They have "attestations" which are not the same thing.
- loeg 5y ago
  > But given the monthly audits conducted, "it's not" is not very likely to happen at all. The auditor would have to be actively lying or misrepresenting for USDC and Gemini both for something like that to happen. USDC has regular attestations, not audits. It's an important distinction.
  - TameAntelope 5y ago
    Would an audit even make sense here? Based on some Googling, I found this as an explanation for the difference: > One of the things to keep in mind to differentiate each of these services is that audits are performed to discover data, risks, or compliance issues that may not have been known before the audit took place, and attestation is to evaluate and review how true the data or information is when compared to a stated purpose, internal control or system. [0] Based on that reading, it sounds like an audit wouldn't make sense here, since we're not trying to discover anything new, just asserting a statement to be true. [0] - https://www.ispartnersllc.com/blog/defining-attestation-assurance-auditing/

Marazan 5y ago

You can get Circle to give you USD for USDC? How? Are you talking about selling USDC to another baghholder? Thats not 'redeeming' that's trading.

stepanhruda 5y ago
Yes, Circle or Coinbase will redeem them for you. Similarly you can close a position on DAI and burn the tokens.

rank0 5y ago

*redeemable with permission from Coinbase and provided they follow through on their promises of 1-1 backing

beervirus 5y ago

A stablecoin that hasn’t lost its peg yet.