Can Tether Actually Back a New Stablecoin like GBPT?

Tether has announced earlier today that it will be launching a new stablecoin to be pegged to the price of the British Pound Sterling, and will be appropriately named GBP₮. It should also be noted that the token will not be available to users whose keyboard does not contain the ₮ symbol.

For those with fancy keyboards, Tether’s new stablecoin is due to launch in early July and the Initial blockchain support will include Ethereum.

GBPT is going to be Thether’s 5th stablecoin product alongside USDT, EURT, CNHT and MXNT.

How will it be backed?

Given the state of the market (ps — it’s bearish) and the fact that the Terra and UST crash is still relatively fresh in the collective mind of the cryptoverse, it’s natural to be apprehensive of a new stablecoin offering.

The reason Terra LUNA failed is because the entire system has one giant flaw: in its pursuit to be decentralised it opened itself to an outside exploit, whereby the attacker could dump a large amount of UST and BTC onto…