It may be December, but the Year of the Stablecoin is just beginning. As we have reiterated time and time again, Tether provided all its’ competitors with a major opportunity when it refused to continue its’ one and only full audit. Now, it seems that any Stablecoin which is willing to finish this process and even consider repeating it regularly might be able to differentiate itself from the growing pack.
Earlier today, it was announced that one Maltese Stablecoin project is aiming to do just that. According to a report from Coindesk, Statis, the firm in question, has already hired BDO Malta to run regular audits of its’ reserves after only just launching this summer. This, of course, brings the logical question: why haven’t existing Stablecoin projects done the same?
While answering this is not at all easy, one thing seems clear. Across the Crypto space, it is a commonly held belief that running a full audit on a Stablecoin is not possible or too difficult to do. For a prime example of this, look at Cameron Winklevoss’s response back in October to one Twitter user’s allegation that the Gemini Dollar was not really audited, despite the company’s regulated status.
When the user cited the company’s September report from its’ independent accountant on the subject and said that it essentially proves nothing, Winklevoss responded by saying that this was just another example of Crypto twitter professing to understand things it really does not. He clarified this by stating that doing so would be essentially impossible.
In the end, regardless of his opinion, the allegation appears to be true. Neither Gemini nor any other Stablecoin project has truly produced a full audit. Instead, most of them have produced attestations which they have phrased as if they are akin to audits.
In reality, however, an attestation seems to be nothing more than an audit without any consideration for whether a company’s dealings conform to global accounting standards.
As this saga unfolds, if Stasis can be the first to prove that it has the cash reserves it says it does, it is reasonable to assume they will come out on top in the Stablecoin niche. On the other hand, it is just as likely that another project will beat them to it.
By: BGN Editorial Staff