Topic: Let's talk about backed (and not) Stablecoins - GOLD token 100% backed by gold. (Read 432 times)

I think you nailed it here.

I am sure that the name"Stablecoin" was carefully chosen by professionals for the first pegged cryptocurrency (Tether) and past perfect for their marketing needs.
Of course, the name "stable" gives the "sense of security" and I am sure, that it was their main goal, which was achieved without any doubts.

There was a need for such an alternative on the crypto market to be able to secure ourselves from volatility but nobody thought that so much money will be printed from the thin for so long.
I just can't understand how Tether was able to do this when SEC and other watchdog institutions are actively scanning the market?

So many projects have already court cases ongoing just after ICO and Tether team was able to print billions of $$$ before somebody even asked for any audits.


Thanks for your kind words.

I am always happy when there is a quality discussion and that is why I was missing valuable comments during your last detox   from the forum.

@wwzsocki as usually great thread - you managed to encourage a lot of people to discuss.


You are absolutely right although it is hard for me to imagine a technical solution by securing coins with the right amount of products (options on them) from commodity exchanges...
Anyway I think that the name "stablecoin" is misleading. In fact, these coins should not be called "StableCoins" but rather "EquivalentCoins" because it much better reflects their character. Among the examples of coins secured with precious metals, ores, "real" securities, shares and fiat currency, the last is the closest to the name "stable", despite the vulnerability to inflation, deflation or exchange rate fluctuations (although only for people who use a specific fiat currency on a daily basis) - in all other cases these currencies will not be stable but remain risky and exposed to exchange rate fluctuations. Unfortunately, the name "stable" sounds definitely better in terms of marketing and gives a "sense of security" besides, it has already adopted in the crypto world.

Imagine that this ball is still rolling, only because Bitfinex is not closed yet, they keep printing Tether from the thin air and now expand even more with the tokenized gold product. If there will be such a black time on the market and many will exchange their USDT to USD (or any other currency) and withdraw to bank accounts, believe me, this will be the day when Tether collapse because there is not enough money in the bank to afford such massive withdrawals. So simple is that.

There was even lately a special movement created to do a "check the exchanges day" and coins like Tether, how they really stand out and to withdraw for one or a couple of days all the money and coins from exchanges and services as Defi. Of course, it was a total fiasco and nobody heard about it, only a few people.

Now let's try to guess why media and crypto influencers haven't advertised such a great case?
Because such day will end up the crypto market once for all and all crypto prices will fall to zero in no time, believe me. That is why nobody mentioned it.

Despite everything, I understand that in the end, everybody will choose Tether Gold if will have a choice.

Probably the biggest player in this game would be Tether GOLD because it is the largest company and with its influence they can easily dominate the market.
But, there are some smaller projects that offers more interesting solutions, for example Anchor token that is backed to global economy growth, so there is a chance of earning some profit in the future.

This is exactly what they count for in Tether. They will overtake this still very small market because there is no competition for them. I see such comments as yours overall, all people are happy that Tether launched this new backed with gold stablecoin and that this is really a good and trusted company, so suites great as a guarantee for our money. I am shocked!!!

We all know that they printed billions of dollars from thin air and now there is still ongoing investigation where hundreds of millions of dollars are missing in bank accounts, that should be secured because USDT is (or rather should be) "pegged" to this money. This hall thing is still ongoing, only because courts will not kill them instantly because only customers would be affected with losses, nobody else and we are talking about billions here.

Imagine that this ball is still rolling, only because Bitfinex is not closed yet, they keep printing Tether from the thin air and now expand even more with the tokenized gold product. If there will be such a black time on the market and many will withdraw their USDT to USD or any other currency, believe me, Tether will collapse because there is not enough money in the bank. So simple is that.

Despite everything, I understand that in the end, everybody will choose Tether Gold if will have a choice.

This question was already answered multiple times in this thread, so it is enough to read and we have only two pages as for now  .

Anyways, I will quote my answer one more time, to make it easier for you.


Remember to read threads before commenting (especially short once) because normally I put on IGNORE such members who comment like this.

I hope you understand, such comments are annoying for the thread author and show that you haven't read the thread at all because this question was also answered in the opening post.

There is such a good unspoken rule, we read the whole short threads and long once (depending on the length) at least a few first and last pages always.

To be able to take an important part in the discussion, and not to duplicate previously asked and answered questions. I hope you will take this advice seriously.

I think it will just throw money away, considering that no one does such a thing, people like it when prices go up and down, because they can produce from the difference in value.
because I don't think it needs to be really done, unless there is a certain reason for it.

According to what i say even a BEP-2 BTCB (BTC backed token) is a stable token because it's price remain stable compared to base product - BTC.

To have really stable coin with stable value you would have to create:
1- some sort of actively managed fund backed by "basket of goods". But this will be extreme inefficient and its annual management cost will most likely exceed the inflation rate.
2- ETP backed by basic materials and products (iron, steel, wheat, gold, oil, copper, natural gas, cotton, corn, sugar, coffee, aluminium and more) - that way you will recive almost inflation/deflation free product which management cost will be acceptable.
3- product not backed by anything but with fixed exchange rate - something like this fund that allows betting on US STOCK volatility (f.e. you earn if volatility will increase) - same thing but allows you to bet on increase/decrease of USD value.

I would buy Tether gold because it seems like the most trusted gold backed stable coin, even Tether has problems in the past, it is backed by one of the biggest crypto exchange - Bitfinex. Other gold backed stablecoins are just newcomers that promise legitimity and this can´t be trusted.

so clearly, nothing is really stable if you say so 

I love the concept of Digital Gold, had read their whitepaper, they said they have equivalent Gold in the vault in relation to the amount of token issued. This way the price can be well monitored. I just hope this stands true for all time.

USD value also fluctuates. Especial compared to other currencies. That's why people trade it on forex.

Does this chart shows that for Turkish guy USDT is not stable coin?



USD value changes even compared to USD itself:


Stable coin means that it is backed by other asset and it is stable to that asset. Not that it's value never change.

if you say GOLD is part of a stable coin, so how do you call gold itself where it is a commodity that has long been traded by people to benefit and avoid inflation, because the value of gold also fluctuates and will not remain (even though the fluctuations are not as high as crypto).
and other benefits of gold is more liquid than crypto. the rest I think it's the same as crypto which is a commodity 

I have read thread here on bitcointalk before some stablecoins have the ability to froze your funds it is quite alarming right? Only DAI doesn't have those rights and the rest of these stablecoins can freeze any accounts, so if you are holding big amounts we need to be careful with these stablecoins.
Don't get offended but in previous years I encountered two or more projects claiming to be backed by gold and end up being scam. I hope digital gold is not one of them. Did anyone know a coin that is backed by gold that is already on the market right now?

As i know tether is also working on stable coins backed by gold (https://cointelegraph.com/news/tether-launches-gold-backed-stablecoin-and-begins-trading-on-bitfinex). I wonder if they will steal "gold token" customers and dominate industry or will increase awareness of such assets and in fact bring more customers to gold token - those who are sick of tether scams and tether fud.

I like to see that you can now invest in gold by buying crypto asset but i think that it is only the beginning. We should see silver pegged stable coin, platinum, S&P500, NASDAQ, google share, Netflix share etc. Over a year ago i was writing about that while everyone was waiting for bakkt.

https://bitcointalksearch.org/topic/m.48962463

Why are so focused on listing bitcoin and other coins on regulated markets? We should focus on creating better trading/investing environment and make those old guys from wall street come to us.

I advise you to read the discussion in the Digital Gold announcement thread because there are many questions like yours answered in detail.

Even here in this thread, you will find answers to your doubts "if the stablecoins are really backed by any gold?".



As you can see almost all important websites and other pages are clickable in these quotes, so I advise you to check them by yourself to verify everything.

Believe me, I will not advertise this project if I would be not convinced that this is not a scam.

Of course, nobody can be sure 100% and in the end, there can be an exit scam but this is the problem with all centralized cryptocurrencies not only stablecoins like GOLD token.

My doubts about coins backed by gold will always be around just like i used to doubt A.I projects that have no proof that they have any Artificial Intelligence platforms or tools or machines, we are been only told that a certain coin is backed by real gold and that is not good enough to change a tough mind like mine

So are you asking me a question and don't want to hear the answer, looks like your own answer is more than enough?

No, it is not paid article, as you know Digital Gold bounty campaign doesn't offer such a possibility.

This thread is not only about Digital Gold and their GOLD token but also about MakerDao, Basis, Tether and all kinds of stabelcoins but many members noticed and wanted to talk about the Digital Gold token, which is very good, of course, because it's a good project, which is really worth attention  .

If you would do a little research before accusing me, you will see that I work and have worked in the past with many projects and maintained threads for them.
I do it already for a couple of years and never got any incentive. For me, enough motivation is to be invested in these projects. This is obvious, I assume, for every investor.

Additionally, as you know Digital Gold project offers a bounty for Ambassadors and to be one of them you have to do something for the project, so to mention them in my thread is a very good idea because Ambassadors are the people who spread the word about the project. I have already written a couple of articles about Digital Gold in two languages here on the forum and will try to spread the word further, maybe finally they will take me as an Ambassador.

So that was my motivation.


PS

WELCOME ON MY IGNORE LIST.

I think the project is a good one although most backed coins are not really backed by anything.

The project had a good bounty campaign. Will you mind to answer my question whether the above article was paid one or there was no financial motivation behind the article? Never mind. It seems a paid article to me.

I understand that you are talking about the Digital Gold project and their GOLD token because this is the only stablecoin that had/has a bounty campaign on our forum to which I am also enrolled.


I don't think this opinion past to stablecoins because as for now I haven't heard about a scam with a stablecoin project.

Of course, I don't think about Tether (USDT) and ongoing scam with market manipulation and money printing from thin air but an outright scam that some stablecoin project made, let's say an exit scam or something like this. Truly I haven't heard about something like this and I am talking about well-known stablecoins, so maybe there was a minor project which already started and scammed people just after. If this is the case then please let me know what for a project that was?

Still, you are right and the centralization of stablecoins is a big concern for users and to be honest, the best once are the most centralized once.