Nu has a serious imitator already

After reading a rather amusing piece of altcoin story, I try to find more information on the BitBay fiasco. Lo and behold, I find this in the BitBay announcement thread (boldface added by me):

After the debut of the markets, we will fork the coin into a hedging coin. This will greatly reward investors who get in on the ground floor, and it will eliminate volatility using a similar system to NuBits. This is all possible because of time locks that allow us to park coins.


Q: Please explain how pegging will work. I watched the whiteboard videos and don’t understand.

A: For properly holding a price to a coin such as in NuBits, you need to control some factors of the coin. …

then David Zimbeck, the lead developer of Blackcoin Halo and Bitbay, wrote on reddit,

We will be connected to some major Chinese exchanges and have a good chance at having something to hedge against (you should check NuBits to understand what that is…) this part alone can bring BC to a dollar. We can use hedging techniques to peg BC.

So Nu has a serious imitator already, and a strong one at that (forget what was told in the story above for a moment). This on one hand shows strong competition coming on pegged cryptocurrency but on the other hand confirms that Nu is in the main stream of where the action is in cryoto world.


Good to hear.

Looks like there is another new competitor

It seems it is already possible to convert CoinoUSD to fiat USD on PerfectMoney, EGOpay, OKpay, and BTC-e and creditcard. Buying CoinUSD with fiat is already easier than buying nubits because in order to buy nubits one has to get fiat on the payment gateways (PM, EGOpay , OKpay…) then get the money to an exchange then place a buy order, then get nubits to your wallet. With CoinoUSD the coin is bought and sent to the wallet on the gateways.

CoinUSD is more an asset on the nxt platform than a coin so it’s not a direct competitor yet. Still, as has been discussed before, besides deploying bots on exchanges, nubit should be made accessible through the payment gateways, quick.

The way CoinoUSD does it seems to be setting up pages that use the gateway APIs to do the exchanges. Way easier than getting a bot running on the exchanges, it seems.

I am wondering how providing the pegged token only through gateways would be able to maintain the peg since I assume that the token is transferrable easily and freely to any exchanges outside the gateways and it is not difficult to create such an exchange.
According to this, tokens such as CoinoUSD won’t be able to keep the peg longtime.

It doesn’t matter as long as CoinoUSD issuer saves all the USD users pay to buy CoinoUSD as the reserve. No matter how many times a sold coinoUSD has been exchanged, when it comes back to the gateway, there will be a dollar ready to buy it back.

All right. So it gets back to this. Why don’t we do the same for Nu instead of having to handle BUY/SELL walls through custodians?