280MM USD stable coins secured by the Ethereum blockchain

PAX, TUSD, USDC and GUSD are USD stable coins regulated in the USA that exist as ERC-20 tokens. Together they amount to 280MM dollars and that number is rising rapidly with TUSD growth going from 5MM in March to over 161MM in October based on the attestation reports. Of interest:

  • If other stable coins like DAI and the value of all other projects built on top of ethereum are ignored we have a 20B (by market cap) ethereum blockchain securing 280MM USD which is a 71 fold difference in value. It is not possible to value ETH like shares in a company but the value of ETH must at some point start to also reflect the value running on top of it.
  • The USD stable coins are moving out of the USA onto exchanges of Chinese origin like Binance, Huobi, OKex (see links above for major token holders).
  • Some of these USD coins are regulated by the New York State Department of Financial Services. The same state that has caused so many problems for crypto businesses over the years but where Genesis Capital provides a loan service to allow institutions to short ETH. Yes, Virginia, the institution herd is real but they only came to short the small guy. This is why we can't have nice things.

Question: Did institutions and hedge funds not understand crypto-markets and in 2018 accidentally crash both BTC and ETH too far turning them into stable coins without liquidity and volatility and are now searching for yield by introducing USD stable coins or are banksters attempting to control crypto-markets? Asking for a friend who wears a tin foil hat.

Advertisements