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.
Overstock CEO Patrick Byrne resigns
The CEO of Overstock (NASDAQ: OSTK), Patrick Byrne, who has openly supported Bitcoin, announced his immediate retirement.
Although the entrepreneur has not mentioned about his future endeavors, he mentioned in his letter that “the blockchain revolution will reshape key social institutions.” Hinting towards the company’s inclination on blockchain, he further added,
“We have designed and breathed life into perhaps the most significant blockchain keiretsu in the world, a network of blockchain firms seeking to revolutionize identity, land governance (= rule of law = potential = capital), central banking, capital markets, supply chains, and voting.”
Crypto advocate Anthony Pompliano also tweeted regarding the incident, crowning Byrne as the “only verbal supporters at the helm of a public company.” Moreover, crypto enthusiasts are optimistic about the fact that other crypto ventures such as tZERO will receive the much needed attention and deliver real value in the crypto space. One of the popular comments on Twitter read,
“Ouch, he was the guy that basically shifted things hardcore into crypto last year, right? Big risk and I’m guessing the shareholders and board are pissed wanting results. Damn shame.”
Binance CEO Changpeng Zhao Awarded With The “Dumbest Crypto Tweet” By Community
- Changpeng Zhao gets trolled for having a conversation with a 14-year old refusing to “discuss numbers in USD” rather insisting on BNB numbers
- Meanwhile, just a day before this, Binance jersey Twitter got hacked while KYC hacker is “warming up” to release new leaks.
On Aug 17, Changpeng Zhao, the CEO of the world’s largest cryptocurrency exchange Binance got trolled for his tweet that actually sounds “dumb.”
Zhao apparently had a conversation with a 14-year old who is a fan of BNB — Binance’s native digital currency, Binance Coin.
This didn’t go well with the crypto community and they simply refuse to believe anything of this sort actually took place.
Popular cryptocurrency podcaster Dr. Peter McCormack hoped that Zhao referred the “14-year old” to the Binance’ terms of service.
“I’ll take “things that never happened” for 50 BNB Alex,” trolled Mansa_Godson, Bitcoin accumulator and founder of Mutual Capital.
This has the Dumbest Tweet Hub, a Twitter page featuring the daily dumbest tweets from crypto Twitter nominating Zhao for the “Dumbest Tweet of Crypto Twitter,” that he finally won.
“Had an interesting chat with a 14yr old Today. He refused to discuss numbers in USD, and insisted on Pokémon monster values instead. The next generation will catch them all,” wrote the Dumbest Tweet Hub.
A Series of Hacks
A day before Zhao took to Twitter to share his experience of talking to a 14-year old about BNB, Binance Jersey’s Twitter account was hacked by an anonymous user called @LightningNetwo9.
Per the tweets posted by the hacker, the individual is a security researcher claiming to have done so with altruistic motives.
The Twitter hacks came about three months after the successful hacking of Binance’s exchange that cost them over 7,000 BTC and around 10 days after a hacker exposed KYC images of 10,000 Binance users on Telegram, demanding 300 BTC in exchange.
Binance said in a statement it was false KYC leak and that there was no evidence that confirms the images obtained are actually from Binance.
In the latest series of Tweets, the hacker is “warming up” for another set of KYC leaks.
The hacker with the Twitter account ‘Bnatov Platon’ is preparing to release further material that “will be released day by day” while asking people to “be aware of scammers” as he is not asking for BTC from them.
While no time frame has been provided for the KYC release, the hacker also shared records of Telegram chats, with a user described as a member of Binance’s customer service team.
Swiss SIX Digital Exchange CEO Departs Due to ‘Strategic Differences’
The CEO of Switzerland’s SIX Digital Exchange (SDX), the cryptocurrency-focused arm of the the country’s principal SIX Swiss Exchange, is departing the company, local news outlet SwissInfo reported on Aug. 14.
CEO departs before SDX launch
Martin Halblaub will step down after eight months into his job when his contract expires at the end of August following disagreements on how the trading platform should be run.
Halblaub reportedly wanted SDX to launch as an independent company, while the board of the parent company — SIX Group — disagreed. He commented on the decision:
“I fully support SDX’s ambition and business model and would have loved to lead SDX into the future. However, I have decided with a heavy heart — given our differing ideas on strategy, combined with the stretch the role is for my life model — that I cannot engage in a long term commitment as Head of SDX.”
Halblaub’s temporary successor will be Tomas Kindler, who will take place as the firm’s CEO on Sept. 1. SIX Group CEO Jos Dijsselhof also thanked Halblaub in an internal company memo, saying that he successfully led the company through its initial phase.
SIX Digital Exchange known for pioneering crypto products
SIX is known for being one of the first stock exchanges in the world to offer a Bitcoin and crypto exchange product. In November 2018, SIX listed a pioneering cryptocurrency exchange-traded product, which tracks five major cryptos including Bitcoin.
As Cointelegraph reported in May, a top SIX Exchange executive has revealed the company will look to issue its own digital tokens as part of its forthcoming blockchain-powered digital exchange.
In July 2019, SIX also announced that it hopes to become the first market infrastructure in the world to offer a fully integrated end to end trading, settlement and custody service for digital assets.
Ultimately, SIX expects its blockchain-based SDX digital exchange to supersede its existing marketplace within a decade. The company is also considering launching its own Security Token Offering — pending regulator approval — which will offer investors an equity stake in exchange for capital.