Stablecoins have taken the crypto world by storm during the bear market. With prices spiking up and plunging down in a matter of minutes, investors and the general people in the crypto arena have started to question the credibility of this world. Are cryptocurrencies supposed to act like stores of value or are they to be used as a means of making payments? And with price fluctuating at a very rapid pace, usage as a source of making payments does not seem too natural. Stablecoins present a solution to this.
Stablecoins are those cryptocurrencies that are backed by fiat or any other exchange-traded commodity. So the price fluctuation aspect of regular cryptocurrencies vanishes from the scene for stablecoins. All the inherent features of blockchain such as trust, transparency, and privacy are also made available. But on the other end, the drawbacks such as inflation of fiat and other commodities also get transferred. So are stablecoins better than regular cryptocurrencies?
The Chief Executive Officer of Anchor, Daniel Popa, recently got in touch with BlockPublisher as he gave his insights regarding stablecoins. Answering this question, he said:
Daniel: “Most stablecoins aim at nothing more than to mirror a fiat currency or commodity to which they are pegged. Fiats and commodities regularly fluctuate and are susceptible to inflation, therefore inevitably losing their original value, and so are the stable coins pegged to them. Although stablecoins offer lower volatility than a typical cryptocurrency, so does virtually any other type of investment out there in comparison to the current crypto market. There is, however, a future for stablecoins that are actually capable of preserving and increasing in value over time through smart design, ingenuity, transparency, stability, and predictability.”
Stablecoins have their own perks and features that give them the importance they have. While staying in touch with the traditional fiat framework, stablecoins present forward the important features of the crypto world such as transparency, trust etc. They essentially mirror fiat currencies in the crypto world.
Further adding on to his statements, Daniel also said:
Daniel: “At Anchor, we have a team of financial experts, business leaders, and PhD mathematicians who have created a dual-token stablecoin that is pegged to a new index, the Monetary Measurement Unit (MMU), which represents the global economic growth. Leveraging key macro and micro economic factors of about 190 countries in the world, the MMU is an algorithm that calculates the total value of the global economic growth. The world’s economy is on the rise year after year, whereas fiats such as the US dollar, for example, have been losing about 50% on average of their value over the last 30 years. Anchor is safeguarded against inflation, impervious to cryptomarket volatility, and is a financial anchor that can stabilize other currency systems as well as the overall global economy.”
Stablecoins seemingly form a bridge between the crypto world and the world of fiat. Benefits and drawbacks of both the worlds seem to be merged in one entity. They do carry much importance in the crypto world as they help different people understand the prospects offered by blockchain which in turn leads to more adoption of this technology and the crypto world.
We are still early in the crypto arena. There’s a lot that needs to be explored, a lot that needs to be put in place. Even the role of bitcoin is not defined clearly in the mainstream financial market yet. It will be very interesting to see how things pan out for stablecoins as we move forward.
QuadrigaCX CEO’s Was Afraid of Being Kidnapped, May Have Set Up ‘Dead Mans Switch’
QuadrigaCX CEO Apparently Feated For His Life Former Colleague Says
The QuadrigaCX controversy seems not to have an end. This time, a former colleague and friends, said that the CEO of the platform, Gerald Cotten, feared for his life due to the large number of funds he exclusively controlled. The information was released by Global News on April 19.
QuadrigaCX CEO Feared For His Life
As per the colleague, Cotten mused to him about being kidnapped due to the large fortune controlled. Adam O’Brien explained that it was difficult to know how seriously Cotten’s references were. O’Brien is the owner of a cryptocurrency business.
On the matter, O’Brien commented:
“Gerry was holding, we know, over $100 million, almost $200 million dollars in funds. That makes people do some pretty crazy things. And I think Gerry was aware of that, and I think he was kind of worried that something might happen.”
At the moment, the funds that people held in the QuadrigaCX exchange are locked and cannot be recovered. Mr. Cotten, who passed away back in December 2018, was the only person that knew the private keys of the wallets where the funds were stored.
O’Brien mentioned that he was shocked about Cotten’s death and that he doesn’t believe in conspiracy theories that suggest that Mr. Cotten faked his death. At the same time, he mentioned that he does not believe that customers will recover their funds.
As O’Brien explains, it will be good for Bitcoin and the industry to have one leg up in a dead man’s switch. A dead man’s switch would allow the funds to be moved to another address if the users do not enter their wallets for a specified amount of time. At the same time, the switch activates by itself and it sends the encryption codes to someone that the user designates before.
At the moment, there is an ongoing investigation related to the funds lost by QuadrigaCX. Nonetheless, there is no information about the funds lost.
CEO Arthur Hayes explains why BitMEX is not likely to add another crypto
Arthur Hayes, the co-founder and CEO of cryptocurrency trading exchange BitMEX explains why his exchange is unlikely to add another cryptocurrency.
CEO Arthus hayes explains during a Youtube interview with cryptocurrency trader, Luke Martin, also known as the Venture Coinist, why BitMEX is unlikely to add another cryptocurrency to its exchange.
The CEO of BitMEX talked about developments in the crypto-space and the future of BitMEX and gave the answer to the much-asked questionin regards the addition of another cryptocurrency to BitMEX.
Read more: Interview with BitMex founder Arthur Hayes: “BTC to $50k within 2-5 years”
As BitMEX is hugely popular among Asian traders and numerous new tokens are added to the crypto markets at a rapid pace, the question everybody seems to have is when will BitMEX add more tokens to its current list, which only includes 8 cryptocurrencies at the moment.
However, despite many traders hoping for more coins, Hayes made it clear that BitMex would not be adding any cryptocurrency because derivatives required sufficient liquidity in the spot market.
Hayes started out by saying that BitMEX would never have as many coins as Binance due to that same reason.
‘So you know, in my opinion, the futures market should always be tighter and trade larger than the underlying of this derivative. And that only happens if you have sufficient liquidity in the spot market.’, hayes said.
‘So, are we gonna list like number 200 on CMC? No, because the market makers would be unable to hedge the risks.’
Binance has a long list of coins where the market makers want to price a derivative, in such a case, it will spread too wide, which according to the CEO is terrible for clients.
‘From a client perspective, as a terrible experience, I’m treating a leveraged product that has a wider spread, then the underlying on the spot market and I’m just increasing my risk of getting liquidated. And that’s something that we don’t want to do.’
Read more: ‘Bitcoin will crash to $2,000, followed by HODLers screams’
So now we know that BitMEX doesn’t seem all to eager to add any new coins out there. Asked and aswered.
Arthur Hayes talks about upcoming interest earning product for BitMEX, reveals other products in pipeline
The CEO and founder of BitMEX, Arthur Hayes, spoke on a Venture Coinist podcast and revealed future Bitcoin products that would allow users to earn interest by holding it, and the other plans of BitMEX.
Speaking about the product that will let users earn interest by lending their Bitcoin, Hayes stated that he was exploring, on a small-scale level, about making it work for Bitcoin. He stated:“I want to create a future where the highest quality exchange and miners issue short term Bitcoin bonds to the ecosystem.”
He said that this would create a “credit curve” for Bitcoin and people could start natively borrowing it and create businesses using Bitcoin without having an outside currency exposure. He also added that this would create a “ubiquitousness of the use of Bitcoin and other cryptocurrencies” and that it would propel the crypto-space as a whole to a new level.
Hayes continued that he would work on it and hoped that he could come up with a test transaction to gauge the interest of the audience for the fixed income market. He said:
Speaking about the next upcoming product, Hayes gave his insights into the ability to buy Nasdaq Indices with Bitcoin. Hayes added:“We have funded a start-up in their seed around who I’m not gonna give out the name yet because I want to put undue pressure on them to deliver but hopefully, by summer of this year you will be able to use Bitcoin and purchase the S&P 500 and Nasdaq’s indices using Bitcoin.”
With the new feature, users can buy a swap for the available Nasdaq’s indices using Bitcoin and can sell their swaps to receive Bitcoin. Hayes said that he hopes to merge the crypto and the traditional markets. He also confirmed that this would be a side product and that it would be accessible through BitMEX.