The Gemini Dollar Buzz
As trustworthy as Gemini may seem, recent studies of the code by two researchers namely; Alex Lebed and Alexey Akhunov have taken the internet by storm. The research posted on a blog states that the Gemini Custodian has the ability to create as many tokens as possible or freeze all tokens or make them non-transferrable and completely change the implementation of the token every 48 hours.
The white paper states “[Gemini can] pause, block, or reverse token transfers in response to a security incident (i.e., catastrophic event)
Alex Lebed further goes on to say
That’s why truly decentralized solutions are absolutely necessary for a global medium of exchange of the future
More Facts on The Gemini Dollar
Gemini dollar is a new cryptocurrency by Gemini Exchange which is regulated by New York State Department of Financial services and backed by the U.S dollar in order to give it a stability of the fiat currency.
It is a stable like a coin like many other but it is equivalent to the USD at all times, i.e.1 USD=1 Gemini Dollar
To avoid the recent plagiarisms, the Gemini company has partnered with State Street and is regulated by NYDFS, which allows it has a competitive edge over its competitor Tether.
Gemini dollar is built on the Ethereum network based on the ERC20 compliance standards. However, the code is maintained by Trail of Bits. It is quite fair to assume that Gemini dollar will further be used by DAPPS for transactions. This can be to avoid transaction fees present in PayPal or other trusted third parties.
What is Gemini Trust Company?
Gemini Trust Company LLC is a New York Trust company, operating as digital asset exchange and custodian, launched by the Winklevoss twins in 2014 for the customers to buy, sell, and store digital assets (cryptocurrencies).
Is it safe for stable coins like Gemini Dollar to be centralized and controlled or as and when desired ?
Or is it best to stick with the decentralized coins as suggested by Alex Lebed?