Tether New 'Synthetic' Dollar Backed by Tokenized Gold

[TravelMug]

What kind you say about this?

Tether, the company behind the $110 billion stablecoin (USDT), debuted Monday a new token minting platform called Alloy on the Ethereum network that lets users create tokens collateralized by Tether's tokenized gold (XAUT).

https://www.coindesk.com/business/2024/06/17/tether-debuts-new-synthetic-dollar-backed-by-tokenized-gold-in-tokenization-push/

Is this one factor one the market is suddenly on a slump, Bitcoin going down to $65k'ish when this news comes out.

Or it is back up by nothing?

Or everything as what we have suspected, that they are running on fractional reserves of $100 Billion?

[albon]

I see this as an expansionary step by Tether to overcome its competitor, USDC, and achieve higher gains from gold compared to the gains from U.S. T-Bills that USDT achieves. [Check out analyst Willy Woo's tweet.]

It is worth noting that Tether Gold's market cap is $575.6M, and the company says it is backed by physical gold stored in Switzerland. The price of XAUT is $2,329, up 0.84% ​​within a day. I do not see that this news is one of the reasons affecting the market, as the asset differs from TerraUSD, which is backed by a volatile asset and not like XAUt, which follows the price of gold.

What I see is that analysts have unanimously agreed that the strongest factors are the decline in Bitcoin ETF inflows and the delay in listing ETH ETFs so far, which significantly affected the market.

[o48o]

Or everything as what we have suspected, that they are running on fractional reserves of $100 Billion?

The position needs to be overcollateralized, meaning that the amount of new tokens users can mint is maximized at 75% of the collateral value.

Am i reading this correctly? Are there 75% less tokens then gold in worth?

And

Moon Gold NA, S.A. de C.V., and Moon Gold El Salvador, S.A. de C.V. will handle the asset issuance, which are regulated under El Salvador's National Commission of Digital Assets (CNAD).

Maybe i have prejudice toward El Salvador, but i am skeptical this would automatically meet regulatory requirements of CFATF, which El Salvador is member of. Or even if it does, asset os not necessary accepted by other regions unless all they have same transparency with same agencies as they do with usdt. And now that i think of it, they most likely do. We have already seen how synthetics have been removed from CEXes before.

[shinratensei_]

literally nothing worth putting attention into when it's literally just tether way of giving capability of remittance for XAUT holder that don't want to sell their XAUT, not to mention that the synthetic dollar requires overcollateralization of XAUT and XAUT in itself only has like $500 million market cap so estimated of market cap that this synthethic dollar gonna have just 75% of 500 million dollar and that if the entire XAUT holder are trying to mint the synthethic dollar.

This probably just a small expansion that tether trying to pump out just to increase their lineup of products nothing more and no way this news relating to XAUT with just half billion market cap could affect bitcoin $1.3 trillion market cap.
on the other hand, i think tether has consistently disclose their transparency about their fractional reserves


https://tether.to/en/transparency/

I doubt they are doing some shady thing

[jrrsparkles]

literally nothing worth putting attention into when it's literally just tether way of giving capability of remittance for XAUT holder that don't want to sell their XAUT, not to mention that the synthetic dollar requires overcollateralization of XAUT and XAUT in itself only has like $500 million market cap so estimated of market cap that this synthethic dollar gonna have just 75% of 500 million dollar and that if the entire XAUT holder are trying to mint the synthethic dollar.

This probably just a small expansion that tether trying to pump out just to increase their lineup of products nothing more and no way this news relating to XAUT with just half billion market cap could affect bitcoin $1.3 trillion market cap.
on the other hand, i think tether has consistently disclose their transparency about their fractional reserves


https://tether.to/en/transparency/

I doubt they are doing some shady thing

They're simply trying to inflate their products by minting new tokens in different forms but backed up by nothing, USDT itself is going down sooner or later because they are simply dumping more and more tokens into the circulation and who knows they actually have reserves for all the minted tokens so I don't think we have any reason to trust them anymore with their new products.

[Abiky]

What kind you say about this?

Tether, the company behind the $110 billion stablecoin (USDT), debuted Monday a new token minting platform called Alloy on the Ethereum network that lets users create tokens collateralized by Tether's tokenized gold (XAUT).

https://www.coindesk.com/business/2024/06/17/tether-debuts-new-synthetic-dollar-backed-by-tokenized-gold-in-tokenization-push/

Is this one factor one the market is suddenly on a slump, Bitcoin going down to $65k'ish when this news comes out.

Or it is back up by nothing?

Or everything as what we have suspected, that they are running on fractional reserves of $100 Billion?

The idea is great. But without regular audits, the stablecoin would be nothing more than a scam. You'll never know when it will lose its peg once Tether is unable to back the coin with its reserves. This needs to be heavily-regulated to help protect investors from an unexpected crash. It seems Tether is the only one that came with such a scheme. I wonder if Circle (issuer of USDC) will do the same?

If Tether's new stablecoin becomes a success, it might encourage other companies to take a "piece of the pie". It's all about money these days. I'd proceed with caution just to be safe.

[johnsaributua]

Maybe there is a momentum that makes the price correct, it is normal towards the week end there are always downside surprises even though it is not routine, I assume some people sell their crypto assets for fun. For new tokens, it sometimes makes attention, but I think only some people collect the initial price and maybe the interest is because it is carried by the popularity of usdt (tether). this is an innovative shell because the rise of a good stable coin makes competitors want to look more varied to meet market needs. even for me, the freedom of a stable coin is greater, which means that I rarely find / deliberately read both auditors, market caps, further fundamentals. mindset is safer because the cex is admittedly the main point even though this is hasty but so far I am comfortable using a stable coin. If you say influence on the market, maybe there is. but usually it follows the owner country (usd) if it affects other assets maybe I have never found it if it is not affected by fud with some assets. the flow of assets in the explorer is a natural thing.

[Dave1]

What kind you say about this?

Tether, the company behind the $110 billion stablecoin (USDT), debuted Monday a new token minting platform called Alloy on the Ethereum network that lets users create tokens collateralized by Tether's tokenized gold (XAUT).

https://www.coindesk.com/business/2024/06/17/tether-debuts-new-synthetic-dollar-backed-by-tokenized-gold-in-tokenization-push/

Is this one factor one the market is suddenly on a slump, Bitcoin going down to $65k'ish when this news comes out.

Or it is back up by nothing?

Or everything as what we have suspected, that they are running on fractional reserves of $100 Billion?

The idea is great. But without regular audits, the stablecoin would be nothing more than a scam. You'll never know when it will lose its peg once Tether is unable to back the coin with its reserves. This needs to be heavily-regulated to help protect investors from an unexpected crash. It seems Tether is the only one that came with such a scheme. I wonder if Circle (issuer of USDC) will do the same?

If Tether's new stablecoin becomes a success, it might encourage other companies to take a "piece of the pie". It's all about money these days. I'd proceed with caution just to be safe.

If my memory serves me right, Tether after so many years have cooperated with auditors and they got a green light or at least the report was positive and that they are not running of fractional reserves.

https://x.com/paoloardoino/status/1752702607305691232?s=20

And probably this is one their CEO is talking about expansion.

But I do agree though that there should be regular audits, and it should be Tether's top priority.

[Abiky]

If my memory serves me right, Tether after so many years have cooperated with auditors and they got a green light or at least the report was positive and that they are not running of fractional reserves.

https://x.com/paoloardoino/status/1752702607305691232?s=20

And probably this is one their CEO is talking about expansion.

But I do agree though that there should be regular audits, and it should be Tether's top priority.

As long as they keep the regulators happy, there should be nothing to worry about. Still, you should know there aren't any investor protections in case something bad happens. If you lose your money, there's no going back. I wonder if investors will sue Tether if they lose everything? I'd certainly not want to see another Terra/LUNA catastrophe from taking place again.

Perhaps, your money is much safer at a bank. Assuming you live in the US. For people living abroad, stablecoins like USDT and USDC are the only solution of getting all of the benefits of the USD without the extra fuss (paperwork, going to the US to open a bank account, etc). Tether/USDT exists on multiple blockchain networks, making it extremely-versatile and highly-liquid. It's no wonder USDT is the largest stablecoin on the market. I sure hope USDT maintains its peg for as long as the crypto industry lives.

[terrific]

If tether won't do anything, they'll be forgotten by the emergence of other stable coins like USDC.
But wait, Tokenized gold? it's a big issues that many have been looking at with all of these backing up.
Maybe another source to bump Bitcoin's price soon.