The Winklevoss twins are desperate to make it in the crypto world, that much is obvious. This has resulted in the twins applying for almost every patent and product possible. While the twins have been unsuccessful in their quest for a Bitcoin ETF, they’ve now turned their attention towards securing their own stablecoin.
Stablecoins will likely prove important when it comes to crypto trading in the future. This is because rather than paying extortionate fees to pull cryptos out of an exchange before a price drop, traders can simply move their investment over to a stablecoin for safekeeping in a fiat-linked token. The price of a stablecoin is pegged to the value of a fiat, meaning it’s largely immune to crypto market corrections.
The Gemini Dollar is Next Generation
There is a huge number of stablecoins available on crypto exchanges around the globe, with Tether ranking as the most well-known. The stablecoin concept has caused some controversy over the years, as it was at the center of a Bitcoin price manipulation scandal – however it was cleared after an independent audit.
Most stablecoins aren’t regulated by any government body, therefore are often touted as money printers. The Gemini Dollar, however, is regulated by the New York Department of Financial Services, making it only one of a handful of regulated stablecoins – thus it’s widely considered to be a safer, next-generation form of stablecoin.
Winklevoss Twins Playing the Long Game
Often the crypto industry and its related companies – especially some ICOs – are accused of trying to get rich quick. Yet, this doesn’t appear to be the plan for the Winklevoss twins. Instead of simply going to market with all their ideas, they are carefully patenting each one and applying for covering regulations. While this approach costs a lot of money and takes a lot of time, it will benefit them in the long run, as they’ll have built the perfect foundation for their crypto exchange.
Is the Gemini Dollar Another Vanity Project?
There is already a vast amount of stablecoins out there that are pegged to the USD – the Gemini Dollar simply adds to the number. As a coin, it is unique in the sense that it is federally regulated, but will people realistically stop using Tether and make the switch? This question has echoed throughout the crypto community. The new Gemini Dollar took a lot of flak on Twitter. Meltem Demirors – CoinShares strategist – pointed out that the new stablecoin isn’t innovative or game-changing at all, it’s simply the twin’s own currency that they can print at will.
so basically we have more tether? feel like USD-collateralized stablecoins are only marginally interesting at best. there are dozens of efforts under way, and i don’t see natural demand for these assets. hope this makes them $$$, because it sounds like it was expensive to print! https://t.co/EFMnxy1LAg
— Meltem Demirors (@Melt_Dem) September 10, 2018
The Winklevoss twins appear desperate to succeed in the crypto industry and take it by storm, but simply copying someone else’s product and getting it regulated isn’t game-changing. For the twins to grip the crypto world by the throat they need to create a new and innovative product that nobody else has. Their love for patents and regulation is admirable, but they appear to be stuck in the mud and – according to data from coinmarketcap.com – Gemini is currently ranked at a lowly 62 by trade volume.