Tether’s Follow-Up: Traders Look For New Stablecoin
Tether stablecoin (USDT) crumbled on Monday. Nature abhors a vacuum, so traders are searching for another dollar equivalent. One of them is Gemini Dollar (GUSD) whose sale has increased lately.
We reported on Monday that USDT, a stablecoin owned by Tether Limited, dropped significantly. There were rumors that Binance, a crypto exchange, wanted to delist the coin from its platform. The USDT is still on the exchange, though.
Gemini volume doubles
The Tether turmoil has caused a lot of new opportunities for others. Bibox, the ninth– biggest exchange, has reported that the trading volume forof the GUSD has approximately doubled after the Tether crisis. At the same time, the USDT trading volume has fallen by roughly 70 percent. According to Aries Wang, the Bibox’s co-founder, traders “have less incentive to trade USDT as a method to hedge risk.”
The Gemini Dollar is issued by Gemini Trust Company, a New York trust firm founded by the Winklevoss twins. The Gemini website claims that GUSD is the world’s first regulated stablecoin. Gemini started selling its coin on September 8th this year. The Dollar got listed on Bibox in late September. Wang said that his exchange was the first one to register GUSD. A week ago the stablecoin was only on two exchanges. According to the website, the coin is listed on fourteen platforms right now including HitBTC, OKEx, BitForex and Bibox.
The GUSD volume has risen to $2 million, however, it is still diminished in comparison with Tether. USDT volume is near $50 million, even after the turbulence. Wang said:
“I think USDT still has a dominant trading volume among all other stablecoins,”
Gemini dollar reached an all-time high $1,19 price on Monday.
How true is TrueUSD and others?
Another alternative for tether is TrueUSD. The TUSD is backed by the US dollar. At least, that what its website says. TrustToken has launched the stablecoin earlier this year. Similar to the GUSD, the TUSD saw its price rising over Monday and Tuesday when the USDT dropped.
Traders have few other options. One of them is USD Coin (USDC). Circle, cryptocurrency financial firm, developed the USDC in April this year but released to the world four months later.
Paxos Standard (PAX), stablecoin owned by Paxos, was officially launched last month. Dorothy Jean Chang, vice president of marketing and communications for Paxos, on Monday revealed that the company had issued over $50 million in cryptocurrency.
We *just* announced 2 hrs ago that @PaxosGlobal had issued $36M a month after launch. And now… we are over $50M already. Demand for $PAX is accelerating faster than I can tweet up with. https://t.co/DfOwjFlk4i
— Dorothy Jean Chang (@dj) 16 października 2018
The buzz with the tether has forced popular exchanges to list more stablecoins. For example, Huobi exchange and Bit-Z said, they would list the four stablecoins above. Other platforms are planning to do the same thing.
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