From: Madars Virza k's
To: "Jeffrey E." <jeevacation®gmail.com>
Subject: Re: Stablecoins
Date: Mon, 01 Oct 2018 20:56:36 +0000
Yes! Will grab a room!
Madars
On Mon, Oct I, 2018 at 4:55 PM J <jeevacation@gmail.com> wrote:
skype?
On Mon, Oct 1, 2018 at 4:53 PM J <jeevacation@gmail.com> wrote:
i dont understand the model. how does the exchange make money. ? what happens if the value of stable
coin goes up as it is anonymous. so maybe some added value. they only have my one dollar? now it
trades at 1 dollar 10?
On Mon, Oct 1, 2018 at 4:52 PM Madars Virza > wrote:
Oh, and Tether's bank is also under heavy pressure these days --
https://modemconsensus.com/cryptocurrencies/tether/noble-funding-cash-tether/ (unnamed sources,
unfortunately)
https:/Avww.reuters.com/anicle/us-noble-group-debt-focus/back-from-the-brink-how-noble-group-was-
saved-from-an-iceberg-collision-idUSKCN1LK0GI (related event)
Risky, risky.
Madars
On Mon, Oct 1, 2018 at 4:43 PM Madars Virza I> wrote:
It is a very interesting topic.
Basically there are two types:
- hard-pegged IOU-based ones (like Tether or Gemini Dollar) where you deposit $1 in the bank and get
1 stablecoin;
- soft-pegged algorithmic ones (essentially loans against a cryptocurrency with interesting incentive
structures https://medium.corn/g ames_3093/the-dai-stablecoin-is-a-game-changer-for-ethereum-and-
the-entire-cryptocurrency-ecosystem-131b412dle75 )
The algorithmic ones will probably be wiped out if there is a flash crash or other black swan event. But
so far the peg has been relatively close to 1.
The most popular IOU-based one (Tether) is widely assumed to be created for evading banking
blockade for KYC/AML non-compliant exchanges. On the other hand, Gemini is doing everything by
the book (they were the first NYDFS-compliant Zcash exchange, for example) so not competing for
random customers. There are USD, Tether, and Gemini Dollar trading pairs and the peg is very close to
1 in practice.
EFTA01021265
Madars
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Unauthorized use, disclosure or copying of this
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