[2018-09-10] CNBC The Winklevii launch the Gemini Dollar stablecoin

[Kakmakr]

The goal is simple. Invent something that will be completely controlled and that would adhere to all the rules and regulations of the people in power to approve it. The twins are basically abandoning Bitcoin, because everything linked to Bitcoin is being denied. They invested a large amount of time and money into Bitcoin projects that are not bearing any fruit. <Gemini/Bitcoin ETF etc.>

They are in this to make a large profit and everything they are doing for Bitcoin is being turned down by the puppet masters, so I can understand why they are trying something new to appease the gods of the financial system. 

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[squatter]

The goal is simple. Invent something that will be completely controlled and that would adhere to all the rules and regulations of the people in power to approve it. The twins are basically abandoning Bitcoin, because everything linked to Bitcoin is being denied. They invested a large amount of time and money into Bitcoin projects that are not bearing any fruit. <Gemini/Bitcoin ETF etc.>

They are in this to make a large profit and everything they are doing for Bitcoin is being turned down by the puppet masters, so I can understand why they are trying something new to appease the gods of the financial system. 

I think they're trying to drive more liquidity to Gemini. Tether obviously has a big market share. If they can take a bite out of that, some of that liquidity should find its way back to Gemini's order books since it'll have the most liquid GUSD markets. I'm not sure how successful it'll be, since Gemini has pretty tough verification requirements vs. Bitfinex. But I'm really curious to see how this all turns out -- how much GUSD gets issued and what the secondary GUSD markets end up looking like.

[gentlemand]

The twins are basically abandoning Bitcoin, because everything linked to Bitcoin is being denied.

I'd say it was the opposite. With this move they're trying to drive accessibility and lower friction. I do wonder if they wonder when they're going to catch a break, but that's what happens if you're trying something new and you're not part of the woodwork.

[Kakmakr]

The goal is simple. Invent something that will be completely controlled and that would adhere to all the rules and regulations of the people in power to approve it. The twins are basically abandoning Bitcoin, because everything linked to Bitcoin is being denied. They invested a large amount of time and money into Bitcoin projects that are not bearing any fruit. <Gemini/Bitcoin ETF etc.>

They are in this to make a large profit and everything they are doing for Bitcoin is being turned down by the puppet masters, so I can understand why they are trying something new to appease the gods of the financial system.  

I think they're trying to drive more liquidity to Gemini. Tether obviously has a big market share. If they can take a bite out of that, some of that liquidity should find its way back to Gemini's order books since it'll have the most liquid GUSD markets. I'm not sure how successful it'll be, since Gemini has pretty tough verification requirements vs. Bitfinex. But I'm really curious to see how this all turns out -- how much GUSD gets issued and what the secondary GUSD markets end up looking like.

I think it is a bad idea, because Tether received a lot of bad publicity and investors will automatically shy away from this, based on Tether's history. The barrier to entry into Gemini will also prevent large scale exposure to this, so it will not add a lot of liquidity, if there is no large volume trading being done.

Yea, I am also curious to see how this pan out, because this is a novel angle to inject Crypto into Wall Street.  

[squatter]

I think it is a bad idea, because Tether received a lot of bad publicity and investors will automatically shy away from this, based on Tether's history. The barrier to entry into Gemini will also prevent large scale exposure to this, so it will not add a lot of liquidity, if there is no large volume trading being done.

Yea, I am also curious to see how this pan out, because this is a novel angle to inject Crypto into Wall Street.  

As I see it, it's one or the other. Either KYC is too stringent and it discourages liquidity from entering Gemini's markets (so nothing really changes)... or it isn't. We'll have to wait and see. I wouldn't write it off just because of Tether's history. Gemini's reputation + NYDFS approval is in another universe vs. Tether.

There's obviously going to be a secondary P2P market that avoids interfacing with AML/KYC. Since it's built on ETH, there's nothing anybody can do to stop that from happening, as Gemini will only have control over issuance and redemption. I'm curious to see how regulators deal with that, and I'm honestly a bit surprised to see this approved by NYDFS.

https://twitter.com/provoost/status/1039183325838098432

Relevant thread here.

I suspect a 'legit' stablecoin will open up a whole new world of weirdness and dodginess and I don't really see how they can completely work their way around it.

Indeed, that's what I'm getting at. They can only control token issuance and redemption since have no control over the ETH network. Obviously, there's no way to stop North Korea from accruing these coins.