Stablecoins have always been an excellent asset for anyone that owns them, and even with the current downtime, they haven’t experienced its effects as much as other volatile cryptocurrencies.
What Are Stablecoins?
Stablecoins are cryptocurrencies designed to have a price that is deemed relatively stable, which typically happens through it being pinned to a commodity or a currency or by having the supply regulated by a particular algorithm.
Its value is often pegged to a specific currency; in most cases, it is the U.S dollar, and it is always set that one unit of the Stablecoin also equals one branch of the currency.
Stablecoins are seen as more valuable than cryptocurrencies as they are seen as volatile as a medium of exchange. They often pursue price stability by maintaining a reserve asset as collateral or through the algorithmic formulas known to control supply.
Stablecoins are powerful and essential to the Crypto ecosystem as they may not be as popular as Bitcoin and other significant cryptocurrencies. Still, they are reliable, and investing in them comes with an air of security.
The New Cryptocurrency In The Works
FTX is teasing its Stablecoin, but it leaves you wondering how it would go. The company recently confirmed its interest in creating and launching its Stablecoin.
The cryptocurrency exchange company has been investing in the blockchain business since the innovation of its rescue campaign earlier in the year. FTX was able to pull out a significant number of struggling crypto brokers during the chaos of the market, which centered the company’s CEO as a knight in shining armor.
FTX teasing their own Stablecoin has a high chance of being met with acceptance. Although the Stablecoin will come at a time not too far into the future, the news will still receive its fair share of excitement.
FTX will be collaborating with significant crypto entities to issue their Stablecoin, and they have teased that it’ll be a stablecoin that will rival others with how well-created and unique it’ll be.
FTX has not stated any specific dates or rollout plot for the Stablecoins, but there is an assurance that the cryptocurrency is in the works and it will be a well-planned one. Currently, FTX boasts of several Stablecoins like Tether (USDT), Binance USD (BUSD), and Pax Dollar (USDP), among others already on its platform, with Tether holding its space as the world’s biggest Stablecoin, currently.
The Stablecoins Market
The Stablecoin market is thriving, especially with the crypto downtime, making them the best way to save if you are interested in crypto. Stablecoins are the right way to go, as they are rarely affected by the volatile nature of crypto.
The Stablecoin market would welcome a new Stablecoin. It may, however, face controversy or receive mixed responses, as people may deduce that it is being created to cause competition. Still, it may be to the advantage of not only the Stablecoin markets but the blockchain ecosystem’s benefit if a new coin comes in and surpasses all expectations.
It would draw in wealth and also drag in an inflow of people.
FTX announcing their intent to create a Stablecoin was not met with all good opinions but also whispers of it being developed to compete with Binance. While Binance has surpassed FTX on the market front for stablecoins, it also has the majority spot for future trading market shares.
FTX may have an excellent plan for their stablecoins. Still, the critical part is their ability to fully actualize it and create a cryptocurrency that would surpass every expectation laid out for it.
The blockchain ecosystem requires good news like this and will welcome innovations. The downtime has lasted for a long time. New cryptocurrencies will open a new path for the blockchain ecosystem to thrive. In contrast, FTX may have just announced their Stablecoin, but others are interested in creating new cryptocurrencies; coins are being thought out and started as time continues. It’ll be interesting to watch the progress that would be made with the use of crypto innovations in the not-so-distant future. From Stablecoins to meme coins, there will be more cryptocurrencies that will find their way into the market and create a boost for the end of the cryptocurrency space.