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Tether founder Craig Sellars tells an interesting story about a billion dollar opportunity that Goldman Sachs missed.
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After Goldman Sachs’ report on Bitcoin and Gold, Crypto Twitter goes into what was meant to be criticism. Leading Bitcoiners criticized their view and the general consensus was that the multinational bank was trying to mislead. Tone Vays, derivatives trader and cryptanalyst Notes,
The only logical explanation for the way #Bitcoin
is explained in @GoldmanSachs Report is for them to buy $BTC While it’s cheap then sell it to their customers on top of the next bubble … won’t be the first time GS is right
However, this isn’t the first time Goldman Sachs has turned down the blockchain space. Tether Creator, Sellars, tells an interesting story from a proposal meeting in 2015. He tweeted:
In 2015 I went to Goldman Sachs and said, “Tether is a central bank in a box. Do you want it? “They asked,” Why would anyone want a dollar on a blockchain? “I replied,” Because it’s the dollar. On a blockchain. “
They laughed at me from the room.
Currently, Tether has issued USDT of over $ 9 billion, making it the third largest cryptocurrency in terms of market capitalization.
A jibe at USDC Circle too?
Sellars not only belittled Goldman Sachs with the success of Tether, but also criticized the USDC. It is the second largest stablecoin with around $ 740 million issued in the markets. PAX follows Circle with 1/3 of the USDC offering.
Current supply of stable coins (USDC, TUSD, GUSD, HUSD, DAI, SAI) (source)
Sellars Wortspiel criticizes the design behind Circle. He says,
Yeah, a dollar. On a blockchain. Kinda. With some other rules and stuff.
Maybe they’ll use it if… we pay interest? ?
— Craig Sellars (@OmniCraig) May 28, 2020
Notice the replacement of “the dollar” with “one dollar” with the addition of “kinda”. Circle is an established blockchain start-up with investors such as Goldman Sachs Group, Baidu and Bitmain. According to the Circle website
USDC is issued by regulated financial institutions and backed by fully reserved assets and is redeemable 1: 1 for US dollars.
While it doesn’t say the US dollar will support 1: 1, neither does Tether. Tether is also covered by its reserves. It includes “traditional currency and cash equivalents and may from time to time include other assets and receivables from Tether loans to third parties”. Nevertheless, the criticism from Sellars seems to indicate less transparency and more control by the circle management.
What do you mean, what Sellars meant by “Kinda”? As we are waiting for an answer from him, please feel free to give us your opinion.
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Disclaimer of liability
The content presented may contain the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication assumes no responsibility for your personal financial loss.
About the author
Engineering Background’s Nivesh is a full-time crypto analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that cryptocurrency is a necessity to prevent corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or email him at nivesh (at) coingape.com
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