Analysis of Gemini StableCoin $GUSD

Hello, welcome to Coined Times with
Maria Matic. There is a lot of going on the cryptocurrency market at the moment,
but I would like to focus on Gemini dollars. Winklevoss brothers announced
the issuance of new StableCoin which is, according to them, the first
compliant and the first fully regulatory approved StableCoin in the world, which
might be a bit of a stretch because we have Paxos, we have Circle’s StableCoin
and other StableCoins which are also compliant. They say it’s fully
regulated by the New York regulator, which is quite a thing, because it’s
difficult to get approval from them. They also said that Gemini
dollars will be insured by Federal Deposit
Insurance Corporation. I’m not quite sure
what that means. Who is going to be treated as a
depositor here? FDIC insures depositors to the bank,
covered by them, up to the 250,000 dollars.. But who is going
to be a depositor in this case? Is it going to be Gemini? Are they going
to treat Gemini as a bank and us as depositors covered up to 250,000
dollars, or they’re going to treat, which is more likely,
Gemini as a depositor to the bank? In this case, what is the limit they’re
going to be covered with? Is it 250,000 dollars? Because, if it’s that amount,
what does it even mean? They are going to be printing hundreds of millions
and billions of this coin, so this amount is quite
insignificant and it doesn’t really mean anything to us.
I asked Winklevoss what will be the limit but he hasn’t
answered. So I’m not quite sure what this means for us and why it’s so hyped, why
is this aspect of the story so hyped. I’ve read a White Paper and the
issuance is quite strange. At the time of withdrawal, when you
withdraw from the Gemini exchange you are actually creating Gemini dollars.
And when you bring them back to the Gemini exchange you
are actually redeeming them, destroying them,
burning them, whatever. So that’s the way of issuing. You as a
user are basically issuing Gemini coins. There is no total supply
and there is something called “PrintLimiter”,
which limits the issuance. But there is no info about governance.
They basically say, we are able to pause, to block, to reverse transactions as
we please. Which is quite a big thing. They need blockchain in order to become
a bank. I mean, to be able to do what the bank does, like block our transactions
if demanded by the government etc. They built this coin on Ethereum with
smart contracts. I don’t really see the need for.. This is a very centralized
coin, mutable, it’s not trustless. Simply.. I don’t even see the need
for blockchain except to have these smart contracts, which will give them
the ability to block our coins and reverse transactions, and I feel quite
unsafe in this aspect, because you can lose your money. You can lose value
in this way, unless you trust them. Winklevoss brothers are respectable
characters, are respectable members of the crypto community. They did some
very good things in terms of promotion of Bitcoin and everything, but I’m not
quite sure why is this StableCoin so hyped and I’m not really
sure what’s the difference between the Fiat currency
and Gemini dollar. Fiat currency is controlled
by the government and Gemini dollar is controlled by the
government and two guys. It’s probably better to have Gemini
dollars than Tether, because Tether, unlike Gemini’s dollars which
will be placed in US bank and audited, Tether has never been
audited, and we don’t really know if they are backed by the
real Fiat currency as stated. I would like to know what’s
the usage for Gemini dollars. They are going to be used by traders,
as Tether is now, to park the value. Winklevosses are hoping that they’re going
to be used by dApps built on Ethereum, and by institutions which cannot use
banks during weekend etc. Let me know what you think about this. Hope
to see you soon, have a nice day. Goodbye

13 thoughts on “Analysis of Gemini StableCoin $GUSD

  1. Gemini dollars – our future? Is that a joke? Gemini is not even near the future with their working process and treatment of customers

  2. I have a feeling that this women just read a text without any understanding what she is talking about. Gemini is a future, oh my god

  3. gemini dollar hasn’t ever been interesting for me, just because we have stronger dollar-pegged crypto and there is no need to use the weakest one.

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