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Company Claiming JPM and Intel are Working on a Stablecoin Probably a Scam

October 2, 2019

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Company Claiming JPM and Intel are Working on a Stablecoin Probably a Scam

There’s a trend on crypto-related websites spreading exciting news about JP Morgan and Intel joining forces to create their own stablecoin backed by the United States Dollar, supposedly called USD Digital or USDD. 

I am here to show you why this is not the case, and why you should avoid this high-potential scam from the beginning. 

For starters, the supposed issuer of the coin is a company called Global Currency Organization (GCO), and no, it has nothing to do with any government body or central banks despite its delusive title. It’s a private company with practically unknown real owners. 

Crypto media outlets such as Coindesk covered the topic saying that the team consists of former employees of JPM and Intel, and somehow TrustToken is also involved. Therefore there are no links to official JPM or Intel respective businesses despite the, I am afraid cheap, attempt to spark a hype among potential investors.

Do we really need another USD-pegged crypto?

GCO promises not only a USD-pegged digital currency but also a revenue-sharing model that will benefit its users. Basically, that means that while you think you own USDD’s, they are trading your funds in other volatile cryptocurrencies such as Bitcoin, and compensate you with a fraction of their earnings, while your initial contribution is stable in USD terms, similar to a traditional banking institution’s services. 

The company claims that the currency will be developed to be used by exchanges, traders and OTC desks who are looking for a stablecoin but unwilling to develop one on their own. 

My questions are: 

  • Why wouldn’t they choose USDT, or something analogous, instead of a new coin that hasn’t even developed yet?
  • How can you brag about offering an original service for those who can’t build one, when you’re basically utilizing Ethereum’s blockchain to run the project?

I mean, I have nothing in particular against stablecoins, but I just can’t stand ‘companies’ who are convinced everyone has a two-digit IQ. 

“Let’s say you’re a Japanese student living in the U.S. and you want your parents to send you funds. With the current process, you’d either need a U.S. bank account or be subjected to long delays and conversion fees. With our stablecoin, you should be able to receive your funds in a matter of days.”GCO’s representative Mr. Vellanikaran told CoinDesk

Again, this is funny at best, if you consider that we actually need 2 days to transfer funds via the traditional banking system anyways, so a crypto asset that tries to convince me that this is their strongest point, is lacking some important attributes.

Bad math x good promo = extremely risky business 

Cryptocurrency transactions usually take anywhere between a couple minutes to a couple hours to confirm, and when USDD’s says it can do that in 2 days, I really don’t see the point of using it, and AGAIN, before it is even launched. 

The same representative also quoted, pretending to be educated and important in the sphere: “worldwide adoption of blockchain-based currencies will come in the next 10 to 20 years” and only with institutional support he added. 

This person is either sleeping on what’s currently happening on a worldwide political level, as stablecoins and cryptocurrencies are already a thing, and we definitely won’t need 20 years to adopt them, or he’s simply a modern era Bitcoinnect guy. I mean, most likely in 20 years, some of us will be living on Mars, not to mention cryptos will be a norm. 

Concluding, this is not the first, and certainly not the last attempt to promote a potential scam using fancy tech and banking names.

You should always do your own research and put your organic processors in motion. Some of the math regarding this project simply doesn’t add up, no matter how uneducated or inexperienced you are when it comes to blockchain technology. 

This is just an opinion based on currently available facts. Hit me on Twitter to discuss it further if you think I am wrong.