The Stable Coin Frenzy: We Take a Look…
We can see a new stable coins launching each day recently and that is a quite interesting issue to deal with it. Stable coins widely market themselves they have the all necessary attributes to become a cryptocurrency except volatility, a thing that concerning most of the investors in the current state of this market.
This frenzy first began when the controversies around Tether (USDT) become more and more relevant as the experts thinking the USDT is using to manipulate Bitcoin price. Despite Tether claiming they have sufficient funds to prove each dollar will be tied to one USDT, lots of investors have already lost their confidence and that resulted in new stable coin projects to be launched.
Stable coins used as a trading pair on exchanges and in crypto to crypto exchanges they are actually offering a lifeline. For example, if you are trading on crypto to crypto exchange and want to see how things will evolve in a specific time period you can just switch to stable coin and while planning your next move.
But after US Commodity and Futures Trading Commision send subpoenas to Tether, the whole sector reacted and there’s a lifeline for new stable coin projected. That resulted in this stable coin offerings skyrocket and many projects claiming they have what it takes in terms of credibility, accountability and regulations to be ‘new and better Tether’.
Stable coins currently are in the works of some major companies including IBM, Circle and Gemini. A small different set of features currently differing themselves from others as they proving they are the right fit for the investors.
Also, not only dollar pegged stable coins, we now see the fiat currencies Euro and Pound also used in new stable coin projects. Most recently, a cryptocurrency company called London Block Exchange, which does OTC crypto trades announced that they have received a permission from the unnamed banking partner in England to launch pound pegged stable coin.
In their press release, LBX’s CEO Benjamin Dives said:
We would be ready for the first crypto pound to be minted in the next 10 days. The primary use case will be a settlement for OTC trades in the London market, then commonwealth exchanges where they don’t have fiat banking, and then securities tokens who want to pay dividends in a crypto pound.
Around the industry, many experts think this frenzy is similar to ICO craze back in the late 2017 and early 2018. They stated lots of this projects will die before they even listed on some exchanges but we can say that the stable coins produced by the companies like Gemini, Circle and IBM have the best chance to survive in that matter.
Soon enough, we will see how the things going and it’s safe to say it is pretty interesting to see what will happen next.