On July 4th, AMBCrypto released a message saying that in the past seven months, the total market value of GUSD has shrunk by more than 88%. According to Coinmarketcap data, the total market value of GUSD reached its highest point on December 20 last year, at 1.0391. Billions of dollars, and its latest market value of 12.16 million US dollars.
GUSD was officially launched on September 10, 2018 by the digital currency exchange Gemini. According to the GUSD white paper, GUSD will be “linked strictly in accordance with the US dollar 1:1 ratio”. In order to ensure the authenticity of the strict link between GUSD and US dollar, Gemini will hold the same proportion of US dollar assets in US State Street Bank. BPM Certified Public Accountants conducts regular independent audits and the audit report will be released publicly.
In addition, in order to reduce the risk of GUSD, Gemini also purchased the relevant insurance from the Federal Deposit Insurance Corporation (FDIC). If the company fails to pay the GUSD in the hands of the user, the insurance company will pay the user the same value of the US dollar.
Therefore, GUSD is called "the world's first regulated stable currency." In the early days of launch, many industry insiders believe that the emergence of GUSD will change the pattern of stable currency market, but in fact, after nearly 10 months of launch, GUSD has become less and less in the market, and its market value has always been It is in a downward trend.
In sharp contrast, it is the USDT that can be described as a “smooth and smooth water”. In 2014, Tether was incorporated in the British Virgin Islands. Since then, in less than four years, Tether's digital currency stabilization currency USDT has dominated the global stable currency market with absolute advantage.
In the development of USDT, although the issue of random issuance, financial opacity, random appropriation of user assets, and strict 1:1 redemption ratio with the US dollar triggered multiple trust crises, USDT still occupies the stable currency market so far. The absolute share.
In June 2019, USDT issued a total of 374 million US dollars, with a total circulation of 3.682 billion US dollars, including a total of 350 million USDT to the Ethereum network. The USDT is only issued in June, which is equivalent to the total circulation of stable currencies such as TUSD and PAX. According to DApp Total analysis, due to the additional reply of USDT in June, its market circulation increased further to 80.6%.
In the stable currency market, whether it is a long-launched TUSD, USDC, PAX, or a regulated GUSD, or just launched USDK, BTCB, it is difficult to break through the stable currency besieged by USDT.
According to RATINGTOKEN data, the market share of GUSD in the same period was less than 0.1%.
According to a close-to-regulatory person in Europe, he said that in the stable currency market, he is most optimistic about GUSD, because GUSD is a stable currency that is regulated and financially transparent.
Unlike the freely issued USDT, the main issuing mechanism of GUSD is based on the amount of US dollars held in its account. When the customer refills the Gemini bank account, the system will create a new GUSD, and when the customer will GUSD When you convert to US dollars or withdraw US dollars, GUSD will be automatically destroyed. In addition, GUSD has a unique hosting mechanism that will ensure that the number of GUSDs in circulation will never exceed the true reserve of the US dollar.
According to the Planet Daily, Coin and Gemini were unable to agree on the terms of the exchange, so “no online money security” is an important reason for the decline in the GUSD market.
But so far, there is no clear evidence to support this claim.
The above-mentioned people close to European regulation believe that the main reason for the decline in the market value of GUSD may be that it must comply with regulatory requirements, so it tends to be weak under the “siege” of other stable currencies, “just like their exchanges.”
According to the chain of finance, the number of trading currencies introduced by the digital currency exchange Gemini is still in single digits.