[reginold]

The Novi site for the Whatsapp partnership says this:

> "When you add money to your Novi account, we convert it to USDP (Pax Dollar), a stable digital currency issued by Paxos Trust Company, a regulated financial institution. USDP is designed to have a stable value relative to the US dollar. So on Novi, 1 USDP is equal to 1 US dollar."

To me that implies it's done on chain...I guess it could just be in their centralized database though.

Curious what the Whatsapp UI does for moments when USPD hits $0.99 like December 1 2021 when it hit $0.989.

Source: https://www.novi.com/WhatsApp

[vmception]

Protip: this is how Tether works but people in the west dont want to believe that people in the east actually deposit fiat into bitfinex.

Multiple US regulators came to the same conclusion. One regulator said “well you usually create tethers 1:1 in response to deposits the vast majority of times and vast majority of amounts, but for the brief few times you didnt at least put a disclaimer up, also here is a fine for not having the disclaimer up”

[BbzzbB]

Here's one blatantly noticeable difference that makes me more trustful of USDP than USDT even without being informed about Pax : total USDP in circulation ("market cap") went down nearly 50% when Bitcoin and cryptos crashed in May-June [0], as you would expect if they indeed offer an off-ramp to USD as people will be bailing out in downturns and if the coin is pegged to cash flows.

USDT? Up and up, it has not once significantly went down [1]. Do people truly believe that they are pegged to treasury and money flows to Bitfinex (despite knowing it is BS) and that they've never been in a significant out-flow period? (Edit: There is one I notice in October 2018 of also nearly 50% from $2.8B, much later than the actual 2017-18 crash. Doesn't take away from the peculiarity of the rest of the chart, but gotta point it out in fairness.)

Anyone with significant money in crypto should be terrified by these sketchy money printers (the irony) rather than complacent of. If and when something like Tether blows up, these are dozens of billions in liquidity that will go poof over night.

[0]: https://coinmarketcap.com/currencies/paxos-standard/ (click market cap)

[1]: https://coinmarketcap.com/currencies/tether/

[pjc50]

> usually create tethers 1:1 in response to deposits the vast majority of times

This as quite often been in whole round billions in the middle of the night on a weekend ...

> people in the east actually deposit fiat into bitfinex

In non-convertible RMB?

I appreciate that the demand for a way round currency controls is a big driver for cryptocurrency, but I'm still not clear how that sustainably functions.