Report: Stablecoins Are Here to Stay | Token Spoken
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Report: Stablecoins Are Here to Stay

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At the moment, you can find a new stable coin project almost every day of the week. Lots of people trying to launch a coin that pegged on a specific asset, and it seems the trend is growing by each passing day.

Currently, we have 57 assets and 23 of them are fully launched and the others currently in the pre launch phase. Researches studied the evidence they said despite having more than fifty projects right now, only a small amount of them able to survive:

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“Stablecoins have had success gaining listings on major exchanges, with eight stablecoins (42% of live coins) featuring one or more Tier-1 exchange listings: Tether (6), TrueeUSD (5), SteemDollar (4), NuBits (2), BitBay (2), Gemini (2), Paxos (2), Numins (1), STASIS (1), HelloGold (1),”

Tether (USDT) currently the leading stable coin as they make up more than 90 percent of the entire business. Additionally, Ethereum based ERC 20 Tokens also seen as a great way to launch stable coins and others using NEO or Stellar to launch their projects.

Research shows that stable coins are still in the very early stages of their development, and more importantly, their effect on the cryptocurrency system is currently unknown. The report reads:

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“While there is a great deal of excitement surrounding stablecoins, the technology is still nascent and it is highly unlikely that the perfect stablecoin design exists at present; further experimentation (and innovation) is expected.

Also, there’s another asset class in the stable coins called Algorithmic coins but their effect has yet to be tested on the live trading platforms. These are not pegged to a currency like Dollar and Euro but instead, they are pegged to some sort of algorithm.

“Stablecoins will continue to see an increase in listings on more cryptoasset exchanges, and these listings will be motivated for reasons beyond simply offering traders options to reduce exposure to market volatility e.g., algorithmic stablecoins may prove popular to list as they could attract ‘Sorosattack’ trading (and significant trading volume) aimed at breaking the automated stability peg,” explained the researchers.

Also the other primary concerns regarding regulations, as the researches don’t believe stable coins have what it takes to compete with fiat currencies.

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