I like Tether more... https://www.investing.com/news/cryp...announces-delisting-of-the-stablecoin-2992350 Gemini Dollar (GUSD) Loses USD Peg as OKX Announces Delisting of the Stablecoin Cryptocurrency 3 hours ago (Jan 31, 2023 11:00AM ET) Gemini Dollar (GUSD) Loses USD Peg as OKX Announces Delisting of the Stablecoin The Gemini-issued U.S. dollar-backed stablecoin Gemini Dollar (GUSD) has been de-pegged after the crypto exchange OKX announced plans to delist the coin from its trading platform. GUSD Loses Peg on OKX Delisting On Tuesday, January 31st, OKX announced that the crypto exchange would delist the Gemini Dollar (GUSD), citing users’ feedback and its delisting policy. The GUSD will be removed from OKX on Wednesday, February 1st. The news, which capitulates a growing problem at the Winklevoss-led Gemini, caused the stablecoin to lose its dollar peg. The stablecoin fell as low as $0.9851 while hitting highs of $1.01 amidst high volatility. The 24-hour price chart for Gemini Dollar (GUSD). Source: CoinMarketCap A Problem in the Works The withdrawals halt at Gemini, and the company’s ties with the bankrupt Genesis made investors to being avoiding the stablecoin since November. In the first week of January, some GUSD metrics fell to multi-year lows. Then, the number of GUSD addresses dropped to 2020 lows, and supply fell to around $607 million. Earlier this month, GUSD descended as low as $0.9555 but recovered to claim its $1 peg, although it has failed to hold it since then. On the Flipside New York regulators are investigating Gemini over false claims that the exchange made about whether the government ensures client funds in GUSD. Why You Should Care The high volatility experienced by Gemini Dollar (GUSD) makes the stablecoin one investors should avoid in the near term until the problems are resolved.
Right now it is 1.01 and only dropped 2-5%. (small by crypto standards) If we can't trust the Winklewii, who else can we? In Winklewii We Trust! Gemini or Bust!
There was a coordinated effort to depeg and cause a run on Tether, $7 Billion redeemed within 2-3 business days and over $20 Billion within a week... I do not think Credit Suisse or any of the big banks can survive that kind of withdrawal It failed because most Tether are in local wallets or defi, hardly in exchanges, only 2-3% Tether supply has increased recently, good sign for the Bitcoin and cryptos bull market otoh, if Tether was to fail, everyone will swap to bitcoin and cause btc price to shoot up, not down, https://www.bloomberg.com/news/arti...o-s-big-short-tether-after-ftx-reveals-cracks
Bitcoin is the safety asset in cryptos ecosystem, so many other crypto assets will swap to it, but we don't really want any instability in the system and not rooting for Tether or Binance dot com to fail
I'll add that there is only one gold. I would imagine that the vast majority of funds would flow into BTC cash or fiat as obv people are holding stables as a crypto checking account.
Right, I get it. Both of us are arguing a simple concept, but they stated the same thing about gold. The historical analog is not good for BTC. "Steady, lads!" BTC dropped 500 on the Genesis news but has obviously recouped bc Genesis was always joke size and Tether didn't crack.
JPMorgan ending banking relationship with crypto exchange Gemini - source https://www.reuters.com/business/fi...ith-crypto-exchange-gemini-source-2023-03-08/ March 8 (Reuters) - JPMorgan Chase & Co (JPM.N) is cutting ties with Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, according to a source familiar with the situation. The decision comes days after Silvergate Capital Corp (SI.N), one of the most influential lenders in the digital asset industry, warned of doubts over its ability to continue as a going concern, fueling a rout in the crypto markets. In a tweet, Gemini said its relationship with the bank remains intact. JPMorgan declined to comment. Analysts have warned of a lack of options for cryptocurrency firms looking for banking partners in the United States, after regulators cautioned banks to be on alert for any liquidity risks that could stem from their involvement with crypto clients. Last month, the Federal Reserve, Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency together said banks should have robust tools in place to monitor funds placed by crypto-asset related entities. Major exchange FTX's collapse spurred Silvergate's depositors into withdrawing $8 billion from the bank in the fourth quarter, sparking a liquidity crisis at the lender. JPMorgan's plan was first reported by CoinDesk.