Libra? Remember that? The “cryptocurrency” introduced by Facebook took the market by storm recently. However, the fickle nature of the cryptocurrency space rendered the Libra “old news,” as Bitcoin broke the $10,000 mark. Welcome to the decentralized finance world, Mark Zuckerberg.
For a moment, let’s bring the basket of fiat currency-backed Libra back to the center stage. Despite the “cryptocurrency” only touted for a 2020 release, many within the cryptocurrency space are speculating on its objective, control dimensions, and actual framework. What is the Libra, they ask.
One of the people taking a guess is eToro’s Senior Market Analyst, Mati Greenspan. With all the talk of Libra’s backing and the growing fiat-pegged crypto market, the analyst quite bluntly stated that Libra will not be “a stablecoin.” Instead, Greenspan likened the Menlo Park company’s pet project to be more like an “asset-backed ETF.”
He added that the key difference between his comparison and Project Libra will be the nature of the yield, wherein “holders” will not receive the yield from investments that are backing the coin.
Greenspan’s worries about the whole Libra project was with respect to the dual role of the party receiving the yield and managing the fund, presumably referring to the “consortium,” which David Marcus has suggested will manage the internal governance of the “cryptocurrency project.”
eToro’s Senior Market’s Analyst had tweeted,
No, the #Libra is not a Stablecoin!
More like an asset-backed ETF. The difference is that holders won’t receive the yield from the investments that back the coin.
The thing that concerns me is that those who receive the yield are the same ppl who are managing the fund. pic.twitter.com/DgOcc6oagr
— Mati Greenspan (@MatiGreenspan) June 21,