Code-analysis of the Gemini of dollars: providers can freeze accounts
Home News Code analysis to the Gemini of dollars: providers can freeze accounts
Matthias Nemack –
In the last week, it was announced that the New York financial supervision will allow two so-called stable coins with a peg to the US Dollar. One of the two new currency of the Gemini dollars. A new analysis now shows that the accounts of the Gemini-owner of the issuing trading stock market “can be frozen”.
Coin-interested persons are informed on the risks
Behind the “study” of the code to the Gemini dollars (we reported here about his planned admission) is none other than Alex Lebed, who has been dealing for years with the opportunities and risks of the Blockchain technology. The expert has looked at the Code of the Stablcoins of the provider, Gemini Trust, the stock exchange acts as Issuer through its trade, exactly. While Lebed comes to the realization that the crypto-Company could freeze the accounts of your Gemini investors. At the same time, evaluation shows that the Token can be converted, in the case of the cases in the “non-transferable assets”. A total of Lebed – of his character, the “stable unit”-founder and co-developer of a decentralized and supposedly less volatile Stablecoins – attests to the new centralized Format for a certain risk potential.
Acute system changes and exchange refusal as a danger?
The analysis shows, first, that the Gemini dollars (USDG) to a model based on the Ethereum-a Blockchain with Ethereum-typical Smart Contracts. As a centralized Stablecoin of the Gemini Dollar has, according to Lebed also Similarities to the Catheter System. At the same time, the expert announced that the issuing Bank can correct the implementation of your implementation approach, strictly speaking, at intervals of 48 hours. Important for investors: Lebed stressed, the provider could generate basically unlimited new Coins. At this point, the expert sees a considerable risk for the young model also, because the provider companies at some point, theoretically, the conversion to the US Dollar could refuse.
Also, in the case of the Tether, many observers on social media had noted that the controversial organization could freeze Tether Limited accounts without Further notice. The criticism here is mostly that there are such offers on the market only a database, but not a “real” crypto-currency like Bitcoin.