Bitcoin Forum

Hi there! I am on my last year of my computer engineering degree and I have been thinking about creating a coin for my bachelor thesis.

My idea is to make something very similar to tether where every coin would always be redeemable for $1. Every coin would be backed by a dollar in a bank account which balance could be viewed by everyone 24/7.
In order to convert the coin to dollars users would have to send their coins to an address where coins would be destroyed.
I could charge 0.25% for every transaction which would be then distributed between the miners or not charge anything and process all the transactions on a personal server.

I currently do not have a lot of knowledge about cryptocurrencies and would appreciate your feedback. I was thinking of building it using the multichain platform since both the bitcoin and ethereum ecosystems would increases transaction costs.

Someone needs to come up with tether alternatives to re-distribute the potential loss of a tether breakdown. If we have "many tethers" then if one collapses, it wouldn't be such of a big deal, but meanwhile, the tether risk keeps growing. And one could say, "who cares about tether, let it crash", but this is delusional, there will always be a demand of a virtual gateway for the dollar.

If you make a tether alternative, improve on the current tether problems, make the account holdings public etc, otherwise everyone will think it's another scam. Tether has been audited and this makes it's credibility very low. I understand how difficult it is to run such a service tho.

So far, the only thing that would be considered close to Tether would be to leave you fiat in an exchange and purchase Altcoins at the price you want.

If you dont have a lot of knowledge then you have no place in cryptocurrency development or starting your own platform. Maybe its better for you to contribute in the BTC codebase before thinking of starting your own cryptocurrency.

There are many developers who came here with a lot of ambition but have created failing projects that turned into scams.

Your question has just been answered there is a new coin just completed ICO "X8". Its job is identical to Tether except it will be a Euro based denomination and will be backed by a basket of 7 major currencies plus Gold. Should be available middle of this year.

GLOBCOIN? Their cryptocurrency is 100% asset-backed. Linked to a currency basket of 15 most imortant fiat coins and 5% gold.

Although the most interesting advantge for me is their multicurrency prepaid mastercard, successful in Europe since 2016. The plan is to include their cryptocurrency in the existing card!

There is no doubt that Tether needs an alternative. But it's pretty hard to do. Tether is connected with crypto exchange, so it's easier for them to prove real dollars for confirming liquidity. But even in this case, Tether developers have a lot of questions. Do you want to develop a huge project on your own? One idea is not enough. You need people with experience.

Well arguing like that why should one of the other big exchanges not be able to come up with something like that. Also it might be of interest for the exchanges that currently dont offer a payout into fiat to give people an option in a falling market. Still wondering how that will play out with Tether. Their reserve should be like 2 billion USD. As it is linked to Bitfinex who do 1 Billion turnover per day I cannot imagine any major problem here.

Definitely I agree for the alternative to tether because people are badly in search of asset backed coins and to create such coins and platform you definitely would need large financial backing, infrastructure and legal background which is a hell lot of work and complicated

There are a lot to learn in crytocurrency. If you interested in doing something similiar to tether, where are you going to get the money needed to back your coin. Tether is in billions. I not putting you down, but there are lots to learn when it comes to creating your coin. It not just only about the tech. You got to learn marketing, accounting, legal stuff, regulation, day trading, and the list goes on. You should focusing oncontributing to project, that will also look good on your college thesis.

And why would anyone buy the coin in the first place? I don't think people would buy it in the first place to have it backed up by the dollars in an account, you would have to source these dollars somewhere else, at least that's my feeling of how this would work.

Firstly, I would like to congratulate you on your commitment to studies, but as quoting above, there are many with great dreams and wonderful ideas and when faced with reality end up in failure. Do not give up on your goals, look for information in the technical support sessions and project developments perhaps may help.

Simply go ahead. To start with build an exchange first or you will have to tie up with one.

Maybe it's because Tether is under scrutiny now, but I'm seeing more and more so called stablecoins. If you just look up that term you'll find a lot of information.

By the way I think 0.25% is an excessive transaction fee. Imagine how much $1 million worth of your stablecoin costs just to move it.

A coin that unites all the positive sides of bitcoin and Ethereum will definitely be something revolutionary, I do not have such deep knowledge in the crypt but I wish u good luck with your project!

The bettet alternative that also benefits from enterprise grade performance could be also kUSD by http://Kowala.tech plus it is decentralized and mine-able.

That's my opinion at least to the tether USDT alternative.

Fiat money is an alternative   :D

Please show me how you transfer $ fiat from 3rd world country to your client or vendor in Europe or US within 3 -8 seconds with barely to no fees?

It depends on which 3rd world country you live in, if a coin with very low fee and instant transaction is listed on a local exchange, you can buy it with $ and send it to europe or us. As it is local exchange you probably deposit your money with no fee through your bank account?

Well, bank (if allows you) would take few days using Swift and will cost you a solid amount of fees in most cases. Using Western Union? Massive fees.

Crypto? If it's the right one, takes few seconds to wire anywhere in the world and fees are barely to none.

Can we agree ?

There is in fact an altnernative to Tether that is launching very soon. It is built on Stallar, which is fast, cheap and secure. It will hold 100% USD for each stabelcoin issued (1:1) ratio and by fully redeemable anytime. Most importantly it will allow UNLIMITED buying or selling with FIAT for anyone (subject to a KYC/AML check of course obviously if they are trustworthy they must comply with the law)

I don't think we need an alternative for tether. First thing firet if you don't have unique aspect that differentiate your project from tether, than your project is not necessary. Second, more exchange are offering direct real fiat exchange, and soon all exchange will do the same, and stable coins like tether will be left.

You have a noble idea,creating a stable coin that beats the limitation of the current types will be worthwhile.Tether is rigged with a lot of controversies while the others have not gained much acceptance e.g havven

to be the next coin of the Tether is a coin that has the development as well as the right price brought Tether like IOTE. because IOTA itself is a good coin that can follow the development of Tether. so this coin can be said as the next coin for IOTA in the future.

I have heard about a project called True USD or TUSD. As I understood correctly, they will be listed on major exchanges as a currency against others. For example, maybe on Binance we will see such a pair: BTC/TUSD. I bought some TUSD when the market was falling

I agree that more exchanges will offer direct fiat exchange over time. But it will not be anytime soon because the regulations are very complex.

In the meantime, there absolutely is a need for an alternative because Tether simply does not have the $USD on deposit. They are about to fall apart any day because the CFTC IS investigating them: https://www.bloomberg.com/news/articles/2018-05-24/bitfinex-said-to-find-bank-in-puerto-rico-after-wells-fargo-exit

A very key phrase here:  "The regulator is investigating whether Tether’s $2.1 billion in customer money backing its virtual coin is really there, a person familiar with the matter said in January."

What will happen soon is that Tether will fall apart and be worth $0. However I do not think at all this will cause the price of BTC to fall. While it's true that upwards pressure on BTC price may have been due to fake Tether's buying, unless someone is buying BTC ON MARGIN with Tether, the fact that your Tether holdings go to 0 does not really affect BTC price, in fact people will have to put whatever amount of Tether they are selling into something, and it will most likely be into BTC. There certainly may be a temporary FUD scare and a drop also, but no one will be selling BTC long term just because of Tether.

Why is a cryptocurrency backed by $USD important? Simply because you can make fast, virtually free transactions to anyone in the world. Normal $USD payments are slow, expensive and full of unncessary regulations (banks routinely shut down accounts that send a lot of wires in or out, even if it's a fully legitimate business collecting customer money and paying vendors). Cryptocurrency eliminates all that but no one can do real business in BTC right now, so the need for a stablecoin crypto is clearly there.

Sometimes people say "Oh your project needs to revolutionize the world. I think that's completely false. It just needs to be doing something better, simpler, faster and/or cheaper.

Well, technically you should be buying the stabelcoin when the market is UP (to protect your gains) and then buy cryptos with your stablecoin when the market is down (and ride it back up).

The TrueUSD project is decent attempt to replace Tether but there's a few problems

1) It's built on ERC-20 which is just too slow for modern payments and processing. It's maybe ok on a few exchanges as a "cash" option but that's about it. Not useful to send payments to others, not useful for merchant processing etc

2) TrueUSD has not actually published any reports of their holdings. They keep saying they are fully audited and transparent but yet I have no idea where and how much actual $USD they are holding on deposit. While it doesn't mean it's a fraud by any stretch, it's not a good start for them to be at $43 million market cap and still not a single published report/audit

With the relative sucess of tether, almost every exchange are coming up with price linked crypto. There's even a so called decentralized bank called cryptobank that is issuing dollar, euro, yuan, ruble and others in crypto.

Yes but those exchange based so they're not worth anything. If the exchange goes down you are screwed (like the USD token on Circle/Poloniex). The cryptobank is interesting but again they have to be backing the dollar, euro etc with something otherwise it's not worth anything.

The KEY part of a stabelcoin is being able to REDEEM it into the underlying currency. If you can't do it, it's not worth anything and there's no way I am putting my cash/savings/investments into it

i strongly advise its QTUM, because its one of the strong coin in the cryptocurrency market, it has huge potential to grow. I would advise to hold it for long term rather for short term. Its super Altcoin for long term.

Here is an excellent stabelcoin, fully redeemable in and out of $USD as well as BTC, ETH and XLM

http://www.businessinsider.com/elizabeth-white-crypto-white-standard-cryptocurrency-lamborghini-2018-6

Posted one and didn't came back. I bet he wont be reading any comments here anymore.
Or he could have been pulled by some ICO already to try how much of an expert is him.

But still why want to create something like Tether? It is like an escape pod for whales and you are just helping them.
It could be one of the reason why value of every coin and tokens have been dropping cause whales can now play in and out using Tether.
Don't like the idea. Go to bitcoin platform instead.

good analytical program for a crypto, I think this is a serious problem when the potential for tether damage, a good and perfect system, will produce good results, so there is no scam and harm to others who use. both in the area of fee and over time in the transaction.

I understand what you're saying but for crypto to become mainstream, it HAS to apply to the real world. No one is accepting BTC because it's too volatile.

I disagree about whales, they can easily cash out to fiat (there's $billions being traded in OTC) if they want. But it's the average investor that is stuck if they want to take their gains out to actually use them for something because coinbase limits them to $1000 a day!

A solid stablecoin helps everyone because it brings more credibility and use to blockchain. People can use the stablecoin for real world payments, and invest in BTC as a store of value/inflation hedge etc

Tether also includes a good coin and has a very well-developed development. so that this tether is commonly said to be a coin with a development that is so increasing and promising. other than that to be an alternative IOTA is a very suitable coin and good.

I agree, many alternatives to Tether is a good thing. I did see Tether had a "lawyer" look at their bank accounts on June 1st. Doesnt' mean much to me though

Here's a complete list of stablecoins:
https://coincodex.com/stablecoins/

Do you have any update on what phase you are now with this project you've come up with?

Those who have been suggesting another type of stablecoin, read the whole context.

I don't think people will accept your stable coin because their are a couple of stable coin backed by usd in the market. One which has mentioned by you. Other than tether, there are USDC, TRUEUSD and some more possibly. So, you have no place there if you come up with innovative idea. Good luck.

I do not think that there are so serious projects that can so seriously manipulate the market as the USDT. Few people understand why the USDT is created at all and how the altcoins pumping works, therefore, in general, buying BTC for expensive altcoins is a very smart step.

I just hope you didn't go ahead with all mentioned in this post that you will do. Your priority should something of more value offline because I don't see where you get the funds to implement these. Unless, just may be your parents or ward is that wealthy.

Right now there is a glut of stable coins tied to the USD. GeminiUSD is a trusted stablecoin which has passed the regulations test, and there is the USDT whcih is popular on exchanges. There needs to be other coins tied to different currencies for traders outside of the influence of the US dollar

In this moment I know the only project which has passed audit , and have which I think can compete with usdc , Ah and so for me 2 coin good

I don't think you should purchase tether honestly.  It has a lot of fishy behavior behind it and the team.  If you must use it, just use it to temporarily offset drops in BTC or ETH and buy back in.  There's no point in holding tether and honestly I'd consider it dangerous to say the least.

Actually now a lot of stablecoin on the market, and of all of them I like usdc, it is well established and has passed all the checks from the United States

Tether is the most reliable stablecoin out there. Other options are not that safe (such as True USD and Paxos).

that was a good idea. buy do you have a large amount on your bank account to back up the coin you are up to?
anyway, theres a lot of coins now that is alternative to tether. there's TrueUSD , USDCoin , GeminiDollar.

Alternatives for USDT is many nowadays, you need to check the any trading sites and check the available conversion for your flexibility. TUSD, USDC and Gemini dollar are my picks if I am not going to use tether.
There is no problem to use any of this coins because these all coins are for stable coin list only.

Tether is the biggest stable coin in the cryptocurrency market at the moment, and I think only USDT is worth to buy in all stablecoins. So that you should use it to avoid losing the money when the market goes down the next time.

Try the USD backed stable coins.
In my opinion it may be the most used, not reliable. The first created stable currency was tether, and it has started to grow as time goes by, because there was not a strong rival. When it was first created, if there were USD backed stable currencies as today, it could not develop as it is today.

I've seen coins coming up similar to Tether but not active, common or on any major exchange.
It's going to be pretty difficult to meet up to Tether.

Tether is one very good and most popular stable coin and i guess there's already a lot of stable coin in market like TrueUSD and USDC.

There are so many stable coins at the moment and there are tons of alternatives. I do not like Tether and I am waiting for another stable coin that is currently on its ICO phase. But you can use TrueUSD, USDC, ROCKZ. They are all great and could be used on a daily basis.