A community of day traders, Whalepool recently tweeted that not even a single USD-supported stablecoin, including Gemini [GUSD], Circle [USDC], Paxos [PAX] and TrueUSD [TUSD], has issued complete audits.
These stable coins platforms have been indicted for only offering evidence which proved their reserves, while, there was not enough proof of complete audits.
The founder of Winklevoss Capital Management, Cameron Winklevoss replied to Whalepool’s tweet saying that they were blaming the platforms without even perceiving the fact that these platforms cannot be audited and only have to go through attestation.
A Bitcoin trading group called BTCVIX joined the discussion on twitter stating that the only thing they have been saying all these years was that ‘Full Audit’ was an imaginary term and they are not against the process of using a third-party attestation.
Winklevoss further stated that Whalepool’s claim that they were not criticizing the audit process is double-dealing at best as they had quoted “just attestation” which denoted that the platforms had another option. However, unfortunately there is no alternative.
Whalepool commented that Winklevoss actually did not understand their point and further invited him to join them in the discussion of cryptocurrency ecosystem one day.
An ensuing Twitter Altercation
Whalepool’s tweet read: “We were attempting to illustrate that gusgd, pax, usdc, usdt etc, all generally do not issue full audits but attestations alone. We hope one day you can join us on teamspeak to discuss crypto.”
Cameron, in connection with stablecoins, said that there was no financial report to audit the conformity and an audit cannot be conducted on a stablecoin. Thus they could only depend on the third party attestation in which the affirmation is exact.
He advocated his opinion saying, “Fighting FUD w.r.t to a product that is issued by an unlicensed issuer and does not disclose where the fiat is located- isn’t that like arranging deck chairs for Titanic?”
Whalepool made it clear to Cameron that they were fighting Tether FUD and especially that tether falls short at addressing some industry standards wrt to auditing. They further added that “the information available says this is not true- this is what we were saying. Less about Gemini dollars more about stablecoins.”
They also said that Cameron thinks GUSD is really special because it is licensed and Tether is FinCEN administered by the way.
“Twinkle: newsflash, you copy pasted Tethers white paper and got some stupid New York state approval. Your meme coin is just not that interesting,” they added.
Cameron concluded by stating that they again don’t understand what actually an audit is. And that they are using the term without getting to know that one cannot perform an audit on a stablecoin.
“You must use an “attestation.” Sophisticated market participants understand this and get it. Full stop,” he commented.