Lionel Messi. Credit: AP; Mike Sullivan
Crypto Global
Crypto

Stablecoin Shakeup; Messi’s Crypto Compensation

Photo: Lionel Messi. Credit: AP; Mike Sullivan

Two news items are adding to doubts over whether stablecoins—a digital currency supposedly tied to a hard asset such as the U.S. dollar—can live up to their name. 

Tether, the Hong Kong-based company that manages tether, the biggest of these cryptocurrencies by market cap, gave more details on just how much of its holdings are tied to commercial paper rather than greenbacks. And crypto exchange Coinbase has removed a statement on its website indicating that each USD Coin is backed by $1 “in a bank account,” instead saying that they’re pegged to “one dollar or asset with equivalent fair value,” according to Bloomberg. 

Both pieces of information further sully stablecoins’ reputation. Stablecoins were supposed to remove some of the volatility of other cryptocurrencies because each unit was tied to a hard asset like dollars. But in recent months, more reports have emerged that the most widely held stablecoins are actually backed by dollar-based debt—or even, in some cases, other cryptocurrencies. 

Get access to exclusive coverage
Read deeply reported stories from the largest newsroom in tech.
Latest Articles
 
Exclusive Venture Capital Enterprise
Blackrock Values ‘Space Carpool’ Startup Loft Orbital at $550 Million
Rendering of the YAM-4 spacecraft bus by Blue Canyon Technologies for Loft Orbital. Image provided by Business Wire
Commercial space startups have had a mixed track record as investment prospects: While shares in space tourism outfit Virgin Galactic have doubled in two years, satellite internet provider OneWeb ended up in bankruptcy court last year. Even after that bumpy ride, investors are still keen on the sector, which they see as a way to bet on the next generation of big-data and internet-connectivity...
Latest Briefs
 
Google Hopes to Settle EU Antitrust Probe Over Online Ad Business
CNN Announces Programming Team for Streaming Service
Europe Wants One Mobile Charger To Rule Them All
Stay in the know
Receive a summary of the day's top tech news—distilled into one email.
Access on the go
View stories on our mobile app and tune into our weekly podcast.
Join live video Q&A’s
Deep-dive into topics like startups and autonomous vehicles with our top reporters and other executives.
Enjoy a clutter-free experience
Read without any banner ads.
Rendering of the YAM-4 spacecraft bus by Blue Canyon Technologies for Loft Orbital. Image provided by Business Wire
Exclusive Venture Capital Enterprise
Blackrock Values ‘Space Carpool’ Startup Loft Orbital at $550 Million
Commercial space startups have had a mixed track record as investment prospects: While shares in space tourism outfit Virgin Galactic have doubled in two years, satellite internet provider OneWeb ended up in bankruptcy court last year.
Gorillas founder Kağan Sümer. Photo provided by Gorillas
Exclusive Venture Capital E-commerce
Gorillas Raising $950 Million Amidst European Delivery Wars
Gorillas, one of the biggest of a crop of European startups in the convenience delivery market, has finalized a $950 million series C fundraising round, valuing the company at $3 billion, according to two people with direct knowledge of the situation.
Fortnite characters sporting Balenciaga outfits, a recent metaverse-forward partnership. Credit: Epic Games
Reality Check Facebook AR/VR
Epic’s Metaverse Needs Mobile Eventually
Fortnite won’t be coming back to iOS any time soon, and the outcome of Epic v. Apple doesn’t exactly augur well for Epic’s prospects of prevailing in its pending lawsuit with Google either.
Illustration by Haejin Park
Exclusive Google
How Google Spies on Its Employees
At Google, a seemingly innocuous action can earn an employee the attention of the company’s corporate security department.
Epic CEO Tim Sweeney. Photo by Bloomberg
The Briefing Facebook Apple
Today’s Lessons in How Apple Wields Power
Apple’s legal battle with Tim Sweeney of Epic Games is turning into one of those off-putting television dramas where none of the characters are likable.
Art from the Axie Infinity NFT game. Photo: Axie Infinity.
Crypto Global Crypto
NFT Game Axie Infinity Targets $1 Billion in Revenue, Launch of Crypto Exchange
Online video game Axie Infinity has emerged as the most successful of video games built on blockchain technology, which underpins how players make money in the game.