Unbacked stablecoins like algorithmic coins and (probably) Tether are not hedges, they are a huge source of potential danger for the industry. Although I guess that’s an argument in favour of Glo (assuming you’re legit).
In general, I think the idea is good, and if it works as planned, well, you aren’t gonna make 11 trillion of course, but you could displace some bad actors and generate some money for charities.
However, if I were an EA org, I would still hold off on getting involved with glo for now. The problem is that the FTX debacle involved SBF using EA’s reputation to help build his company up, which was then used to harm people. If we get unlucky and Glo ends up doing something similar (even if it’s, say, incompetence rather than fraud), then the credibility of EA in most eyes would be pretty much dead. Being fooled twice by the exact same trick is not a good look.
Again, I think you’re probably fine, and i think the situation is unfair to you. I think if Glo establishes itself as gold standard, beyond reproach company with full auditing and transparency, then it could be something great and worth endorsing, I’d just advise EA orgs to wait before getting involved.
For what it’s worth I think that holding off until Glo is more established is sensible. Others might have a different risk appetite.
I hope that Glo doesn’t come across as trying to ride EA’s reputational coattails—rather I would say that EA-aligned thinking inspired the project and we think that it will be of interest to at least some EAs.
And a note on nomenclature: I think the stablecoin label should only apply to coins that can maintain their peg in the event of a run. It was quite the marketing coup that so many not-so-stable coins got folks to call them stable. I think ‘algocoin’ would have been more appropriate, but the folks in the “exchange coordination” signal group have so far failed to consult me on the matter 😃
I added a caveat about “fully-backed” stablecoins to the comment above in light of your remark, BTW
Unbacked stablecoins like algorithmic coins and (probably) Tether are not hedges, they are a huge source of potential danger for the industry. Although I guess that’s an argument in favour of Glo (assuming you’re legit).
In general, I think the idea is good, and if it works as planned, well, you aren’t gonna make 11 trillion of course, but you could displace some bad actors and generate some money for charities.
However, if I were an EA org, I would still hold off on getting involved with glo for now. The problem is that the FTX debacle involved SBF using EA’s reputation to help build his company up, which was then used to harm people. If we get unlucky and Glo ends up doing something similar (even if it’s, say, incompetence rather than fraud), then the credibility of EA in most eyes would be pretty much dead. Being fooled twice by the exact same trick is not a good look.
Again, I think you’re probably fine, and i think the situation is unfair to you. I think if Glo establishes itself as gold standard, beyond reproach company with full auditing and transparency, then it could be something great and worth endorsing, I’d just advise EA orgs to wait before getting involved.
For what it’s worth I think that holding off until Glo is more established is sensible. Others might have a different risk appetite.
I hope that Glo doesn’t come across as trying to ride EA’s reputational coattails—rather I would say that EA-aligned thinking inspired the project and we think that it will be of interest to at least some EAs.
And a note on nomenclature: I think the stablecoin label should only apply to coins that can maintain their peg in the event of a run. It was quite the marketing coup that so many not-so-stable coins got folks to call them stable. I think ‘algocoin’ would have been more appropriate, but the folks in the “exchange coordination” signal group have so far failed to consult me on the matter 😃
I added a caveat about “fully-backed” stablecoins to the comment above in light of your remark, BTW
Yeah, i think that satisfies me for now at least. I expect I’ll have more to say on your post about the rest of crypto. Thanks for the conversation!