The crypto world is already filled with a lot of different kinds of coins and tokens. Utility tokens, security tokens etc. have gotten a lot of heads spinning already, and among these have risen a new breed of crypto coins, the stablecoins. So what are they all about? Are they better than regular cryptocurrencies?
Stablecoins essentially tackle one of the burning issues of the crypto world, volatility. Bitcoin, ethereum, XRP and other major cryptos in the game are the subject of large-scale volatility. Prices fluctuate too often and too much. Stablecoins bypass this issue by having a peg with the fiat currency or some other exchange-traded commodity. By doing this, stablecoins inherit the feature of stability but at the same time, drawbacks of the fiat world also get transferred. Although the features that blockchain presents forward in the form of trust and transparency also get transferred. So are stablecoins better than normal cryptocurrencies?
Henry Stanley, the Chief Executive Officer of ICOAxiom.com recently got in touch with BlockPublisher as he answered this question in detail. He said:
Henry: “Are Stablecoins better than normal cryptocurrencies? Yes and No, That may not be the direct answer you were looking for but I will go over two situations in which where stablecoins are better than cryptocurrencies and are worse then cryptocurrencies.
What it really comes down to what is your intention with stablecoins. If your a retailer selling goods online, you don’t want to be subject to the volatility of cryptocurrencies, a 20% price swing if it goes up can increase your profits, however if it goes down, you may end up getting less money for the item that you sold then what it cost you to purchase it, so in that situation stable coins are better.
However, if you see cryptocurrencies going up 20% a week and want to jump in and hope to catch some of that appreciation, your highly unlikely to get that from stable coins. which makes them worse for investing and trading. Additionally, many cryptocurrencies are used to purchase services from the companies that issue them. If you would like to purchase or utilize the services you would need to exchange the stablecoins for the cryptocurrencies that you desire.”
The issue of volatility that stablecoins tackle might not be that bad at all. Quick price jumps are one of the reasons why people step into the world of cryptos, to gain a quick profit. With stablecoins, this aspect is thrown out of the window. On the other end, stablecoins make the most sense for performing large-scale massive transactions since the price does not fluctuate too often. All in all, stablecoins essentially form the bridge between the fiat world and the world of cryptos. Although they might not be termed as ‘pure’ cryptocurrencies, they sure possess the potential to increase the adoption of the crypto world overall.
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.