Impact of USDC - Circle - & other Stable coins. Dangerous.

[timotron]

This spam of Stablecoins can impact the market in the short term very positive ->much more volume and Billions of "USD`S" 

Prepare your selves for a nice $$ injection in the market by USDC.

But in the long run, I believe this can be very dangerous as we get a lot of manipulative power in the ecosystem.


Note: This is referred to USD "backed" StableCoins - Others like DAI still have nice fundaments.

[exstasie]

This spam of Stablecoins can impact the market in the short term very positive ->much more volume and Billions of "USD`S" 

Prepare your selves for a nice $$ injection in the market by USDC.

But in the long run, I believe this can be very dangerous as we get a lot of manipulative power in the ecosystem.

Ah, I see Circle's new stablecoin has been launched. Gemini just launched one as well.

I guess they can allow for manipulation in the same way that Mt Gox (the Willy bot) could. When you get down to it, a stablecoin is an "IOU" in the same way that an exchange account balance is an "IOU". A stablecoin issuer, just like an exchange, could inject unbacked money into circulation. Is that the kind of manipulation you're talking about?

[timotron]

Yes you got it, didn't we saw something similar in December?

A lot of stablecoins coming up this days.
In any case I think this is a bullish signal.

I also wondering about Eth Ts cap, it is allredy overcrowded... Adding more and more demand could be destructive.

Maybe we see soon a waves or Eos Stablecoin.

[randythered]

It seems like your thinking is based on the ideas around tether being used to manipulate market price but the basis of that theory is that tether is not backed by real dollars. If any stable currency is backed by real dollars then they aren't creating money out of thin air, they're only doing so when there's a real demand for it and we won't have any artificial money coming in to the market and inflating it

[stompix]

This spam of Stablecoins can impact the market in the short term very positive ->much more volume and Billions of "USD`S"  

Prepare your selves for a nice $$ injection in the market by USDC.

But in the long run, I believe this can be very dangerous as we get a lot of manipulative power in the ecosystem.

Ah, I see Circle's new stablecoin has been launched. Gemini just launched one as well.

More will follow for sure as it basically means printing money that people might never want back, same as the 1.2 billion $ that sits quietly on the Starbucks cards.

Next will be an avalanche of other currencies like euro, pound, yen, yuan and for sure we're going to have also a large influx of scam coins by fake companies and the madness of useless alts will never end.

A stablecoin issuer, just like an exchange, could inject unbacked money into circulation.

Of course, nobody is stopping them to do otherwise.
And they could simply create a "stable" coin, buy BTC with it, sell the coins for $...and voilà the coin is backed. By their own money, made out of nothing.

[timotron]

It seems like your thinking is based on the ideas around tether being used to manipulate market price but the basis of that theory is that tether is not backed by real dollars. If any stable currency is backed by real dollars then they aren't creating money out of thin air, they're only doing so when there's a real demand for it and we won't have any artificial money coming in to the market and inflating it

Yeah, but you point to trust these people. I prefer trustless ways of doing things, and there are ways to create Stablecoins without a central authority

I mean, anyone can believe anything, and I don't trust this big fishes.

Would you keep your fingers away if you had the chance to have few bucks extra without much risk?
I would have problems my self to stay back and don't try to make some extra profits.

[timotron]

This spam of Stablecoins can impact the market in the short term very positive ->much more volume and Billions of "USD`S"  

Prepare your selves for a nice $$ injection in the market by USDC.

But in the long run, I believe this can be very dangerous as we get a lot of manipulative power in the ecosystem.

Ah, I see Circle's new stablecoin has been launched. Gemini just launched one as well.

More will follow for sure as it basically means printing money that people might never want back, same as the 1.2 billion $ that sits quietly on the Starbucks cards.

Next will be an avalanche of other currencies like euro, pound, yen, yuan and for sure we're going to have also a large influx of scam coins by fake companies and the madness of useless alts will never end.

A stablecoin issuer, just like an exchange, could inject unbacked money into circulation.

Of course, nobody is stopping them to do otherwise.
And they could simply create a "stable" coin, buy BTC with it, sell the coins for $...and voilà the coin is backed. By their own money, made out of nothing.

Yes, And we are accepting this fact as it where normal.

But this is how things work - 0% logic

[drm]

We don't even need stable coins, just used to enrich the issuer and at some point the bubble will burst.

[coinanna]

Anyone interested in the topic of stable coins: don't miss the world's first stablecoin conference in London! https://stableconf.com/

[kryptqnick]

I suppose, it is a lot like USDT, but from another group of people (company called Circle)? It's also about storing dollars in a bank and people owning crypto versions of dollars, right? I don't think that such coins are bad, because the current market situation is very unstable and generally bearish, so people might be interested in freezing their assets in cryptocurrency this way (since fiat-crypto exchange policies are not very nice as well). I don't trust these coins, however, because it's not safe to hold money in some real place that could be burned or robbed. Moreover, as is the case with tether, people cannot be sure that each coin truly is backed by 1 dollar and the revelation of such a thing could lead to sudden collapse.

[timotron]

I suppose, it is a lot like USDT, but from another group of people (company called Circle)? It's also about storing dollars in a bank and people owning crypto versions of dollars, right? I don't think that such coins are bad, because the current market situation is very unstable and generally bearish, so people might be interested in freezing their assets in cryptocurrency this way (since fiat-crypto exchange policies are not very nice as well). I don't trust these coins, however, because it's not safe to hold money in some real place that could be burned or robbed. Moreover, as is the case with tether, people cannot be sure that each coin truly is backed by 1 dollar and the revelation of such a thing could lead to sudden collapse.

I like your thinking, thx for sharing. I agree.

[timotron]

And this one - just added to Binance:

https://coinmarketcap.com/currencies/paxos-standard-token/#charts
https://twitter.com/PaxosStandard?ref_src=twsrc%5Etfw%7Ctwcamp%5Eembeddedtimeline%7Ctwterm%5Eprofile%3APaxosStandard&ref_url=https%3A%2F%2Fcoinmarketcap.com%2Fcurrencies%2Fpaxos-standard-token%2F
https://support.binance.com/hc/en-us/articles/360016713791

The Web is not secure! Less than 150 followers. No info in coinmarketcap like Vol - Cap.

[Nemoja]

We don't even need stable coins, just used to enrich the issuer and at some point the bubble will burst.

We do and we do not in the same time. Stable coins don't promote decentralized market but also it is a "pillow" in the market fluctuations that may harm people who have purchased a specifi amount of cryptos in order to use them for micropayments and everyday life.

[Ucy]

True. Looks like the  central banks we all love to hate are slowly popping up in different form to start minting coins out of thin air.


This's the kind of things the government regulators should be focused on not decentralized Cryptocurrencies.

 Anything Centralized and Crypto-related should probably be regulated  into extinction or closely monitored by the community,  regulators and the world.

[green547]

Well since the government can print unlimited money why not let the people do it   I think most of these are actually backed up by enough USD for the amount they printed but I've heard a lot of negativity about Tether not having enough cash reserves to back up their USDT.

[Jannn]

There really isn't any huge injection of stablecoins as you mention, they've been around for a while and only seem to be gaining in legitimacy.

I think that it's unlikely we will see any negative influences of stable coins unless they become scam like, they can only bring stability to the market which is what we need.

[figmentofmyass]

True. Looks like the  central banks we all love to hate are slowly popping up in different form to start minting coins out of thin air.

but stablecoins are no different than the centralized exchange system they were spawned from.

think about it: what's the difference between "bitfinex USD" and "USDT"? they are both centralized IOUs issued by the same people and they are both withdrawable and redeemable by bitfinex. they are exactly the same thing fundamentally; the only difference is you can send USDT via blockchain ledger.

in other words, if you think stablecoins = printing money, then all fiat exchanges = printing money. a centralized IOU is a centralized IOU, no matter what name you give it.

[timotron]

Well since the government can print unlimited money why not let the people do it   I think most of these are actually backed up by enough USD for the amount they printed but I've heard a lot of negativity about Tether not having enough cash reserves to back up their USDT.

haha, I enjoyed this. Okay, let us all do a Stablecoin!

Maybe I am a lunatic, but I don't trust these entities a little bit - Backed by air is for me reality.

[timotron]

There really isn't any huge injection of stablecoins as you mention, they've been around for a while and only seem to be gaining in legitimacy.

I think that it's unlikely we will see any negative influences of stable coins unless they become scam like, they can only bring stability to the market which is what we need.

Well, if you count the quantity of money what will move from this USDX stablecoins very soon into the Market you will maybe see what I mean. in any case time will tell.


And about your opinion what we need.
  Let me tell you this; 

Didn't we saw a negative influence till we have the oldest stable coin?

not only in Crypto, think about the unmeasurable inflation since 19XX...

a few main points with a lot of power are not good for the rest of us.
 And don't get me back. I enjoy stablecoins. I just dislike the creators if they don't are 100% transparent.

[timotron]

And this one - just added to Binance:

https://coinmarketcap.com/currencies/paxos-standard-token/#charts
https://twitter.com/PaxosStandard?ref_src=twsrc%5Etfw%7Ctwcamp%5Eembeddedtimeline%7Ctwterm%5Eprofile%3APaxosStandard&ref_url=https%3A%2F%2Fcoinmarketcap.com%2Fcurrencies%2Fpaxos-standard-token%2F
https://support.binance.com/hc/en-us/articles/360016713791

The Web is not secure! Less than 150 followers. No info in coinmarketcap like Vol - Cap.

One more: https://www.basis.io/ 

This one is based on the Seigniorage Shares from 2014 with some improvemets.
It will burn tokens in the progres, but is not in the market yet.

At least this ones have over 5K+ followers and Telegram group is also active 3K+

Thanks to d5000 for sharing!