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Stablecoin projects are paying rebates to traders, and it caused a big headache for Paxos

by Frank Chaparro

January 4, 2019, 1:05PM EDT  ·  4 min read

Quick Take

  • Stablecoins are offering rebates to drum up business 
  • Crypto sharks saw the arbitrage opportunity from one coin’s rebate
  • And that was a headache for Paxos, the firm’s CEO said

by Frank Chaparro

January 4, 2019, 1:05PM EDT  ·  4 min read

When crypto exchange Gemini launched its much lauded stablecoin in 2018, it hoped the market would view its dollar-pegged coin as a regulated and more trustworthy alternative to Tether.

Still, things got off to a slow start, with GUSD lagging behind its competitors. Gemini dollar currently has $90.3M in circulation while Paxos has $132.2M and USDC has $287.2M.