Recently, Whalepool, a community of day traders posted on Twitter that not a single US Dollar backed stablecoin provided their complete audits which included TrueUSD [TUSD], Gemini [GUSD], Paxos [PAX], and Circle [USDC]. The stablecoin platforms were accused of only providing attestations which proved their reserves but there was no proof of a complete audit.
Cameron Winklevoss stated that Whalepool was accusing the platforms without understanding the fact that these platforms could not be audited and only had to go through the process of attestation. He added:
“With that said @Whalepool thank you for continuing the long-standing tradition in crypto where the default position is to go out half-cocked without any expertise or knowledge in an area and pretend to know what you are talking about.”
According to a Bitcoin trading group, BTCVIX the only thing they have been stating for all these years was that “Full Audit” was a made up term and they did not criticize the process of using a third-party attestation.
Cameron stated that Whalepools claims of not criticizing the audit process were disingenuous as they stated “just attestations” which implied that the platforms had another option but unfortunately there was no alternative.
Whalepool opined that Cameron did not understand the point made by them and further invited Cameron to join them someday in order to discuss the cryptocurrency ecosystem. They added:
“We were attempting to illustrate that USDT, GUSD [Gemini], PAX [Paxos], and USDC, etc. All generally do not issue full audits but attestations.”
Whalepool further stated that they were only fighting against the Tether FUD and specifically believed that Tether was unable to address certain industry standards with respect to “auditing”. Whalepool stated:
“The information available says this is not true— this is what we were saying. Less about Gemini dollars more about stablecoins.”
In the context of stablecoins, Cameron stated that there was no financial report framework to audit conformity. Thus, an audit could not be performed on a stablecoin instead they could only rely on a third party to attest whether an assertion is accurate. He added:
“Fighting FUD w.r.t to a product that is issued by an unlicensed issuer and does not disclose where fiat is located — isn’t that like arranging deck chairs on the Titanic? You clearly missed the forest for the iceberg.”
The post Gemini’s Winklevoss says Tether is an unlicensed issuer and does not disclose where fiat is located appeared first on AMBCrypto.