Why is suddenly everyone in such a rush to create a regulated IOU stablecoin?
While some of the marketing speak surrounding stablecoins revolves around creating a fully independent crypto ecosystem without the greedy banks, banks are the ones capitalizing here.
Adopted from the Weekly Market Commentary from TradeBlock, October 15, 2018:
Circle recently launched its own IOU stablecoin, USDC, backed by USD reserves. Circle has built out a separate entity, CENTRE, to act as a governance structure and networking entity that financial institutions opt into in order to mint new USDC stable coins. CENTRE is not the issuer of the stablecoin, the member institutions are.
According to CENTRE white paper, these member institutions are then responsible for issuing the coins and are audited by CENTRE to make sure the reserve is there.
This process works in a similar way for all IOU stablecoins: Verified customer sends a cash deposit to a member of CENTRE, the member then mints the stablecoin equivalent and sends the amount to the customer.
The issuing member now holds the cash deposit, the customer holds the stablecoin.
The issuing member is a money business or a bank: In the case of CENTRE, the only issuer (for now) is Circle. In other IOU stablecoin solutions, as well as with USDC in the future, the deposit may go to a regular bank. Circle itself is actively looking to become a federally licensed bank in the US.
But unlike with a regular customer deposit, in this case the bank is not paying interest to the depositor.
TradeBlock suggests that for USDC these banking institutions would hold the cash deposit with the Federal Reserve Bank: “As the FED raises interest rates (another rate hike is expected in 2018 and three rate hikes for 2019) these banking institutions could stand to benefit as greater interest is paid on these cash holdings.”
In other words, according to TradeBlock banks lucky enough to partner with an IOU stablecoin might stand to earn more money on customer deposits than they would if you simply held your fiat with them, because then they’d have to pay you interest.
Tether is in a vulnerable position
This fact suggests that banks would now want to compete for depositors. Decreasing trust in a vulnerable competing stablecoin solution is probably very good news everyone else in the same line of business.
The CENTRE whitepaper mentions the problems we have seen Tether have, albeit without naming any names. It simply states that they created a separate governance structure with independent stablecoin issuers to increase transparency and minimize adverse effects should issues arise (although it seems dubious to have a single, supposedly fungible token issued and backed by different independent institutions).
Tether seems to be too inter-related with Bitfinex to salvage any transparency for now: The executive members of both organizations are the same people, both companies are BVI entities, most information is tied up in non-disclosure agreements and on top of it, due to banking problems it appears that Bitfinex is now the actual issuer/de-issuer of Tether. Which is fine, if the USD reserve is there, but that is an information that is not to be publicly disclosed.
It cannot be said convincingly whether Tether is solvent or not but given the current situation it would be strange if nobody attempted to profit from this vulnerable position that Tether and Bitfinex are in.
BitMEX (10% fee off) @ bit.ly/melancholic-100x
TradingView (~ 50% off in BTC) @ bit.ly/tradingview-moon
Conbase (no offer but you still click this lol) @ bit.ly/plebtier
EthFinex (NEC token rebates for MM) @ bit.ly/ethfinex
TensorCharts @ bit.ly/tensor-charts
Upcoming and current airdrops February 2019
|Name||Date||How to access||Official URL||Additional Info|
|Cryptomillions $CPMS Airdrop||Capped||New crypto airdrop, simple social tasks will get you $8 worth of tokens that will be directly tradable.||join||web|
|COSS Exchange Valentine's Day Airdrop||14 Feb 2019 00:00 GMT+8 - 23:59 GMT+8||This is a special event from the crypto exchange COSS: On Feb 14 only you receive an airdrop of 25 CFT if you make one deposit and trade any cryptocurrency to qualify.||join||more|
|Valentine's Day at CryptoFlower game||14 Feb 2019||This is a special event from the dApp game CryptoFlowers: On Feb 14 only you can grow flowers with special pot and AR flying hearts. These flowers will be rare and can be sold later.||sign up||web|
|Genes Token Airdrop (ERC20)||As available||A tokenized project for genome storage service on the blockchain. You get 5 GENES for commenting on Bitcointalk.||join||web|
|Synchrotron / $STC Airdrop #9||30 weeks of airdrops (Airdrop #9 starts 11 February 2019)||Hybrid PoW/PoS payment cryptocurrency. The team drops 72% of supply (18 MM coins) during 30 weeks of airdrop campaign; there is additional budget for bounties. The bounties are announced on discord server. Each airdrop round runs from Monday 10AM UTC to Friday 10PM UTC. Validation runs weekends and distribution Mondays. You need to download a $STC wallet.||drop rules in this thread||info|
|DSTRA / $DST Airdrop #21||Biweekly, drop #21 runs from 11 Feb 2019||DSTRA is PoS Scrypt Masternode coin with limited supply that will be used in DEX environment and marketplaces. There are airdrops every two weeks, users need to register via discord. Regular payouts verified.||discord||rules|
|Agri Novus Bounty||As available||New blockchain-based project for organic supplies providers and customers. The team will pay out bounties for social media work.||more|
|Tratok Airdrop||February - March 2019||Tratok stands for Travel Token, it is a token of an application to make bookings for travel and hospitality. Follow the Tratok Project on their social media platforms and get 1000 TRAT for each approved action. Tokens distribute 20th March 2019.||join|
|LATOKEN Invite-Only $LA Airdrop||Capped||LATOKEN drops their exchange LA tokens to invited users who verify their e-mail address. LA is a token of a fintech project aiming to setup a distributed trading ecosystem. If you contribute with bounty work you can earn up to 3,140 LA. The token trades actively on the exchange against several cryptocurrencies.||join||web|
|HubrisOne Airdrop Round #5||Weekly (16 weeks of airdrops, each weekly round starts on Tue)||HubrisOne is a financial service that offers personal and business crypto-friendly bank accounts. There is a massive bounty campaign with weekly payouts. The work ranges from social media engagement or Bitcointalk signature to content creation, all must be properly reported. New round starts every Tuesday.||join||web|
|IoT Classic Airdrop (ERC20)||As available||IoT Classic is a decentralized supply chain tracking platform for the internet of things. The developers have background in the supply chain industry and are working on a cloud-based software solution that will make IoT supply chain tracking easy and scalable. The team drops 1,800,000 IOTCL tokens in total for social media follows.||join||web|
|Endpass Testers' Bounty Campaign||As available||Endpass is a new ERC20 wallet that is looking for testers. Everyone who downloads the app and signs up via Bitcointalk and Google form receives 0.1 ETH if they provide constructive feedback, the reward for every reported bug is 0.1 ETH as well. Additionally, there is a Bitcointalk signature campaign.||join||bitcointalk|
|Isibeli / $BEL Airdrop||Capped||New crypto for fast payments. Drops 200 BEL to the first 5000 members who complete simple social media tasks. There is a dubiously big giveaway on the homepage too, be vigilant with this one, don't use your main e-mail to sign up.||join||web|
|PMTC Airdrop||Ends 1 March 2019||A new cryptocurrency written from scratch using PHP, Python and MySQL. Its purpose is a betting system built into blockchain, it currently lives on testnet that needs to be tested. Therefore after signup you'll receive some testnet tokens. You will need to use them on the platform in order to climb in the airdrop ranking to later receive the real tokens.||join||info|
|CoinIMP Airdrop||Capped||CoinIMP is a Monero and Webchain CryptoNight JS web miner that claims to be getting around anti-viruses and adblockers. They are currently in a token sale for a utility token IMP that should be used for payments via the CPM advertising model. A total of 25 million IMP tokens will be distributed among users in an airdrop. You get 500 IMP for a set of social actions: You'll need to sign up, head to the "Buy" section and scroll all the way down.||join||web|
|Cargo Coin Bounty||Weekly||Cargo Coin, a token for transport & logistics with an ICO past the soft cap by now, is having a weekly extensive bounty. It spans from simple retweets to YouTube reviews - make your bounty hunter account and pick your poison.||join||info|
|AllForCrypto (WAVES)||Ends March 2019||A WAVES project for eBay-style marketplace on the blockchain. Drops $20 worth of AFCT, plus they have updated their bounty campaign.||join drop||bounty|