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

gembitz

hero member

Activity: 1834

Merit: 639

*Brute force will solve any Bitcoin problem*

Quote from: beerlover on December 12, 2018, 03:59:24 AM

Circle may not be as horrible as tether if you ask me. Tether was a standalone "company" that is working to get money as much as they can from you and sell their tether for dollars and when they get the dollars even if they really have one on one ratio of tether and dollars they can still make a ton of money from interest rates and investments if they are smart with it and that means even on a worse scenario 1% profit yearly from it.

However, Circle is not like that, circle is an app that is backed by wall street which means they have all the money in the world and even if you give them your money and they use it for investments like an insurance company it is still at safe hands because they are backed by wall street and you will get your money back from them one way or another. Circle has that "trust" aspect that tether will never have with their offshore banks.

printing money out of thin air >> tether 2.0 is not even needed Roll Eyes

meh disgusting

beerlover

legendary

Activity: 3052

Merit: 1188

Circle may not be as horrible as tether if you ask me. Tether was a standalone "company" that is working to get money as much as they can from you and sell their tether for dollars and when they get the dollars even if they really have one on one ratio of tether and dollars they can still make a ton of money from interest rates and investments if they are smart with it and that means even on a worse scenario 1% profit yearly from it.

However, Circle is not like that, circle is an app that is backed by wall street which means they have all the money in the world and even if you give them your money and they use it for investments like an insurance company it is still at safe hands because they are backed by wall street and you will get your money back from them one way or another. Circle has that "trust" aspect that tether will never have with their offshore banks.

nur rochid

full member

Activity: 1050

Merit: 100

Quote from: pedangrusak on December 10, 2018, 05:24:27 PM

I see a lot of daily traders using USDC when crypto prices go down a lot, and return the pair to crypto coins when prices rise. this will provide an important role for the USDC in the market and their volume will continue to expand and if it becomes very large it's like a time bomb for crypto. stable coins backed up with USD even though I'm not 100% sure it's true

of course people will take the road so that they can make as much profit as possible, I think it is only natural, although there are other effects that lurk cryptocurrency, but it is their choice and we cannot do much

CP_Processor

jr. member

Activity: 252

Merit: 1

Quote from: el kaka22 on December 11, 2018, 08:33:32 AM

Quote from: pedangrusak on December 10, 2018, 05:24:27 PM

I see a lot of daily traders using USDC when crypto prices go down a lot, and return the pair to crypto coins when prices rise. this will provide an important role for the USDC in the market and their volume will continue to expand and if it becomes very large it's like a time bomb for crypto. stable coins backed up with USD even though I'm not 100% sure it's true

Stablecoins are good only they are having exact value backup for their circulating coins. But, we need to consider that all the governments are printing money only based on their gold reserve ? As far as I am concerned, many big government also not doing so. They are simply manipulating based on their situations and requirements then why not those stablecoins devs too. Tether is showing out periodically their audit reports, but I'm not sure how crypto people are crosschecking it with respect to total circulating coins.

The rise of stablecoins may disturb the entire balance of this crypto-space but this also a part of this decentralized environment. and particularly we cannot do anything about that. Because, here even utter jokes are finding it's success and proper projects are failing down. Promotions alone are enough for achieving all the needed things.

Sadly, that is true. Noone is really checking the technology behind a project. Promotion is what matters the most

el kaka22

legendary

Activity: 3654

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www.Crypto.Games: Multiple coins, multiple games

Quote from: pedangrusak on December 10, 2018, 05:24:27 PM

I see a lot of daily traders using USDC when crypto prices go down a lot, and return the pair to crypto coins when prices rise. this will provide an important role for the USDC in the market and their volume will continue to expand and if it becomes very large it's like a time bomb for crypto. stable coins backed up with USD even though I'm not 100% sure it's true

Stablecoins are good only they are having exact value backup for their circulating coins. But, we need to consider that all the governments are printing money only based on their gold reserve ? As far as I am concerned, many big government also not doing so. They are simply manipulating based on their situations and requirements then why not those stablecoins devs too. Tether is showing out periodically their audit reports, but I'm not sure how crypto people are crosschecking it with respect to total circulating coins.

The rise of stablecoins may disturb the entire balance of this crypto-space but this also a part of this decentralized environment. and particularly we cannot do anything about that. Because, here even utter jokes are finding it's success and proper projects are failing down. Promotions alone are enough for achieving all the needed things.

riskyron

newbie

Activity: 48

Merit: 0

So many stable coins are operating currently that it`s pretty hard to keep an eye on them. To tell the truth, I have already quit trying to do that, concentrating on the key players in the field. Among them is USDC, which seemed quite promising at the first gaze, but that impression was spoiled with learning more and more about it. Firstly, it is backed by a bank what totally runs counter to the whole idea of centralization and bank system. Secondly, has a backdoor allowing to freeze or seize funds if "it is believed illicit activity is involved". What can be more risky? One more thing: audits that were revealed publicly were not full and investors should keep in mind that fact. And last but not least - USDC was cloned from a real stable coin, so its image has been questionable from the very beginning.
We have come to the conclusion that there are no weighty arguments in its favour.

CP_Processor

jr. member

Activity: 252

Merit: 1

Quote from: stompix on November 05, 2018, 05:01:00 AM

Quote from: Betwrong on October 20, 2018, 10:52:26 AM

Quote from: stompix on October 18, 2018, 10:29:42 AM

~

First off, thanks for your explanations! Now, it's an understandable move on the part of the issuers of new "stable" coins, to make new ones for people to buy. But what makes them(issuers) so sure people would buy them? If there are people who love those coins so much why wouldn't they stick to the old ones? It is always risky to invest in something new and untried, and seeing that USDT has been around for some time, why look for other options? Normally, although taking risks, people expect big gains when investing in new altcoins. But what gain can one expect investing in a "stable" coin?

Oh really late on this ....

But you could easily force people to do so when you have an exchange to back you up and they can acquire it pretty easy.
Then you either force the other stable coins out and introduce your own or just make sure to manipulate volume so they move to it.

Then other exchanges will add your coin (via bribery or pure out of customer demand) and you're set.
And GS has both the power and the money to make it happen.
USDT has been around for a long time but...at 96 cents it was;t that much of a stable coin.

Quote from: timotron on November 02, 2018, 07:59:11 AM

I lost track of Stablecoins, how many are there now?

Too many

And be prepared to have some more.

A friend told me that some exchange in Romania has launched its own stable coin or stablelion. (god how this sounds in English Grin

).

Latest count said there are 150 stablecoins right now, but only a handful are active and trading

pedangrusak

member

Activity: 462

Merit: 11

I see a lot of daily traders using USDC when crypto prices go down a lot, and return the pair to crypto coins when prices rise. this will provide an important role for the USDC in the market and their volume will continue to expand and if it becomes very large it's like a time bomb for crypto. stable coins backed up with USD even though I'm not 100% sure it's true

CP_Processor

jr. member

Activity: 252

Merit: 1

Dear community, here is the first in the series of stablecoin reviews performed of the USD COIN (#USDC).

The goal is to further raise awareness on stablecoins, and help people understand how they work and what is their overall potential.

Hope you will find them useful!

https://medium.com/cp-processor/stable-coin-review-usd-coin-usdc-c7cf78c81dfb

timotron

sr. member

Activity: 924

Merit: 281

Trooper Founder & CEO

Quote from: spongegar on November 20, 2018, 08:32:43 AM

I don't think these kinds of coins will be able tocdlourish in the market. Simply adding up multiple weak coins will not do the market any good at all. I mean it would've beeb better of they just focused and developed one strong coin and back it up financially. This will just end in a disaster especially now in this blooody market.

I even don't like the idea of one big control point with all the injection power...
in any case, With this bloody days is better to have access to some stable coins...for some people.

spongegar

full member

Activity: 476

Merit: 100

I don't think these kinds of coins will be able tocdlourish in the market. Simply adding up multiple weak coins will not do the market any good at all. I mean it would've beeb better of they just focused and developed one strong coin and back it up financially. This will just end in a disaster especially now in this blooody market.

timotron

sr. member

Activity: 924

Merit: 281

Trooper Founder & CEO

Quote from: gentlemand on November 02, 2018, 09:02:52 AM

The primary risk of ever more stablecoins is splintering their markets into a bunch of tiny and weak ones. I see no reason why any self respecting exchange would list multiple coins. All they're doing it creating an incomprehensible mess with piddling volumes.

So we are a bit more confused, newcomers will be even more confused.

Quote from: stompix on November 05, 2018, 05:01:00 AM

Too many

And be prepared to have some more.

A friend told me that some exchange in Romania has launched its own stable coin or stablelion. (god how this sounds in English Grin

).

Funny people there
Stable-lion Grin

stompix

legendary

Activity: 2912

Merit: 6403

Blackjack.fun

Quote from: Betwrong on October 20, 2018, 10:52:26 AM

Quote from: stompix on October 18, 2018, 10:29:42 AM

~

First off, thanks for your explanations! Now, it's an understandable move on the part of the issuers of new "stable" coins, to make new ones for people to buy. But what makes them(issuers) so sure people would buy them? If there are people who love those coins so much why wouldn't they stick to the old ones? It is always risky to invest in something new and untried, and seeing that USDT has been around for some time, why look for other options? Normally, although taking risks, people expect big gains when investing in new altcoins. But what gain can one expect investing in a "stable" coin?

Oh really late on this ....

But you could easily force people to do so when you have an exchange to back you up and they can acquire it pretty easy.
Then you either force the other stable coins out and introduce your own or just make sure to manipulate volume so they move to it.

Then other exchanges will add your coin (via bribery or pure out of customer demand) and you're set.
And GS has both the power and the money to make it happen.
USDT has been around for a long time but...at 96 cents it was;t that much of a stable coin.

Quote from: timotron on November 02, 2018, 07:59:11 AM

I lost track of Stablecoins, how many are there now?

Too many

And be prepared to have some more.

A friend told me that some exchange in Romania has launched its own stable coin or stablelion. (god how this sounds in English Grin

).

gentlemand

legendary

Activity: 2590

Merit: 3015

Welt Am Draht

The primary risk of ever more stablecoins is splintering their markets into a bunch of tiny and weak ones. I see no reason why any self respecting exchange would list multiple coins. All they're doing it creating an incomprehensible mess with piddling volumes.

Absolutely no way would places like Gemini or Circle gaily issue unbacked coins. It's not going to happen. They have heavyweight investors and regulators up their arse. They'll be a level of legitimacy higher than anything that's come before.

Another risk is running them on ETH. If you have another cryptokitties then your quasi dollar gets stuck in a swamp of txs. And I hope those contracts are watertight as well.

timotron

sr. member

Activity: 924

Merit: 281

Trooper Founder & CEO

Some news about Stablecoins:

https://ethereumworldnews.com/increased-competition-for-tether-as-another-stablecoin-goes-live-offering-better-transparency/

and a new Stablecoin soon: https://medium.com/stably-blog/stably-announces-early-access-launch-of-1-1-usd-pegged-cryptocurrency-stableusd-usds-990c538a8b8c

I lost track of Stablecoins, how many are there now?

timotron

sr. member

Activity: 924

Merit: 281

Trooper Founder & CEO

One more opinion about Stable Coins or Disney dollars has they call it.

I like this Disney name for the StableCoins, they are really similar to Mickey mouse.

https://bitcoinist.com/stablecoins-crypto-fiatcoins/

pumbum

full member

Activity: 434

Merit: 100

this is a new round of events, as in 2017 there were events around bitcoin forks. so you just need to get used to the fact that some events need to be discussed

setialovers

member

Activity: 812

Merit: 11

I think some developers or company launching their own stable coin because they dont trust on others stable coin. Many stable coin in market right now and it will flooding market will stable coin. It will give good impact for bitcoin or others good coin but its hard to predict in long term because the world flooding with USD paper money too

timotron

sr. member

Activity: 924

Merit: 281

Trooper Founder & CEO

Quote from: Betwrong on October 20, 2018, 10:52:26 AM

First off, thanks for your explanations! Now, it's an understandable move on the part of the issuers of new "stable" coins, to make new ones for people to buy. But what makes them(issuers) so sure people would buy them? If there are people who love those coins so much why wouldn't they stick to the old ones? It is always risky to invest in something new and untried, and seeing that USDT has been around for some time, why look for other options? Normally, although taking risks, people expect big gains when investing in new altcoins. But what gain can one expect investing in a "stable" coin?

Gains with stablecoin are made by shorting most cases, but you can see the price is just stable to 1USD, not to some amount of Btc

The yellow line is VS BTC, and there are chances to make some profits

and here another example.

Yellow again for VSBTC

Got it?

Betwrong

legendary

Activity: 3374

Merit: 2198

I stand with Ukraine.

Quote from: stompix on October 18, 2018, 10:29:42 AM

~

Quote from: Betwrong on October 17, 2018, 09:34:23 AM

With some effort I can understand the demand for one of them, but why there are so many of them and why even more are going to be issued? Does this mean that previously issued "stable" coins need improvement? Or, maybe, it means that older coins have compromised their reputation already and people expect that new ones will be more trusted?

Now, this one is easy...

https://www.forbes.com/sites/niallmccarthy/2016/08/01/starbucks-holds-more-cash-than-many-banks-infographic/#43f481cb231a

Quote

Starbuck's customers in the U.S. have loaded at least $1.2 billion onto the company's cards and app.

Every guy that is losing his coins (and a lot of morons do) means coins that will never be redeemed, just like cash on lost or forgotten Starbucks cards. Add fractions of USDC that people will never bother to move around, some that will never be changed for $ again waiting for god knows what and if we think of those as only 3-5% of the total, when those are put against 10-20 billion, it makes one pretty nice sum of money.

And there are the fees...
Bank Wire - Redeem 0.1% ($50 minimum) and the tx fees.

First off, thanks for your explanations! Now, it's an understandable move on the part of the issuers of new "stable" coins, to make new ones for people to buy. But what makes them(issuers) so sure people would buy them? If there are people who love those coins so much why wouldn't they stick to the old ones? It is always risky to invest in something new and untried, and seeing that USDT has been around for some time, why look for other options? Normally, although taking risks, people expect big gains when investing in new altcoins. But what gain can one expect investing in a "stable" coin?

Topic: Impact of USDC - Circle - & other Stable coins. Dangerous. (Read 698 times)