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Cryptocurrency, Stablecoins-While most investors will remember 2018 as one of the worst bear markets for cryptocurrency, those on the development and adoption side will hail it as the year of the stablecoin.
As Bitcoin slips back under $ 4000 again to put an exclamation mark on his worse The month of losses since August 2011, the stablecoins landscape anchored to prices is becoming a more attractive alternative for developers and those looking to integrate the cryptocurrency in a mercantile way that does not imply price speculation. Most investors have become familiar with Tether and the USDT currency, which is currently the seventh largest crypt by market capitalization (having turned over Litecoin today). With over $ 1.8 billion USDT coined and widespread in the market, Tether managed to provide a stable currency at a price that is anchored to the value of a single US dollar. However, the company has also been involved in a series of disputes, ranging from its somewhat controversial report with Bitfinex, to questions regarding exact bank positions, including the amount withheld in reserve that is supposed to support each USDT.
With Tether that does not inspire investor confidence in relation to its position in the market capitalization rankings, it leaves the door open to more enterprising people to invest in the development of new stablecoins. On December 3rd, the Chinese billionaire of the cryptocurrency Li Xiaolai announced the creation of a stablecoin project that would operate in Hong Kong's blockchain fund, Grandshores Technology. Rather than paying for the project, Xiaolai will have a hand in the development of the currency, including the launch of the currency. Xiaolai is also experimenting with the creation of a database based on DAG and other blockchain products, in addition to the stablecoin mentioned above.
Although the announcement did not include details on how the value of the stablecoin would be anchored – whether they would opt for a traditional fiat currency or follow the path of other currencies to reflect that of precious metals – the press release said it would focus on global , traditional currencies. Grandshores Technology's previous reports included the creation of three stablecoins, with values related to the Japanese yen, the Hong Kong dollar and the Australian dollar.
However, the currency led by Xiaolai could constitute a new entity or a division of one of the projects already announced. Despite being in the driver's seat for the project, the announcement comes just months after the billionaire investor made public that he would no longer invest in blockchain-based projects due to lack of regulation and regular criminal activities, including hacking, associated with the sector.
Giving the current state of the prices of Bitcoin and altcoin, and the general downward trajectory for the crypto markets, it is not surprising that the focus has shifted to the less convenient volatile field of the stablecoin. While economists have stressed the problems related to the anchoring of a fiat outside a digital resource and if governments will continue to allow such an event to occur, it has provided a renewed interest in the development of blockchain-based tokens, although lack of price appreciation and evaluation of the market that have become an integral part of the image of Bitcoin.
