Last night, Tether announced the release of its latest stablecoin, Alloy.
On June 17, 2024, Tether, the world's largest stablecoin, launched a new synthetic dollar backed by gold.
We know that after the collapse of the Bretton Woods system, the US dollar was decoupled from gold! The stable currency USDT Tether has started financial innovation.
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Deep Learning:
Tether’s launch of Alloy, a gold-backed stablecoin, reflects its attempt to enhance the appeal and trust of stablecoins through physical asset support. This shows several key points:
1. Diversified asset support: Compared with traditional USDT, which is mainly backed by US dollars and short-term debt, the gold-backed stablecoin represents Tether's efforts to diversify its asset support base. Gold is seen as a long-term store of value, which may make this stablecoin more attractive in times of economic uncertainty.
2. Enhance user trust: After the decoupling of the US dollar from gold (the disintegration of the Bretton Woods system), the US dollar's position as the world's main reserve currency remains solid, but it is still affected by various macroeconomic factors. Tether may try to enhance the security and trust of its stablecoin by introducing gold support to attract investors who seek more physical asset support.
3. Avoid the risk of fiat currency volatility: Stablecoins pegged to fiat currencies (such as the US dollar) are vulnerable to the volatility and monetary policy of the fiat currency. Gold-backed stablecoins can provide a way to avoid the risk of fiat currency volatility, especially in an environment with high risk of inflation or currency depreciation.
4. Market demand and competition: This is a response to market demand. In recent years, the stablecoin market has been highly competitive, and companies have continuously launched new products to attract more users. The launch of a gold-backed stablecoin is also in line with some investors' preference for traditional asset support.
Summary: Tether launched a gold-backed stablecoin, aiming to enhance the diversity and stability of its products by pegging it to a traditional value reserve (gold). This may improve its competitiveness in the market and enhance users' confidence in its stablecoin. However, whether this stablecoin is more "safe" also depends on the market price volatility of gold and the transparency and reliability of Tether's gold reserve management.
——ChatGPT explained
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Tether launches new synthetic dollar alloy backed by gold Overview:
* Tether, the world's largest stablecoin issuer, launched a new synthetic dollar alloy backed by gold.
* alloy aims to provide a more stable alternative to traditional fiat currencies.
* alloy is still in the early stages of development and is currently only available to institutional investors.
Potential effects of alloy:
* Help stablecoins become more stable and transparent.
* Attract more institutional investors to enter the stablecoin market.
Details of alloy:
* alloy backed by 60% gold, 30% silver and 10% copper.
* alloy is issued on the Ethereum blockchain.
* alloy has been fully audited by a well-known accounting firm.
* Tether has disclosed its alloy reserves.
Alloy's future prospects:
The launch of Alloy is an important development in the stablecoin market, with the potential to make it more stable, more transparent, and attractive to more investors. But Alloy is still in its early stages and its future success remains to be seen.
——Gemini explained
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Tether's Alloy (gold + silver + copper, several precious metal-pegged stablecoins!)
It will be even more competitive! It will beat all blockchain algorithm stablecoins in seconds😂🤝
Baige understands
