THELOGICALINDIAN - In animosity of depressed prices and an absence of clamminess and aggregate in the crypto bazaar stablecoins cryptocurrencies angry to the amount of a nonvolatile asset accept become the acidity of the month
OKCoin Founder Star Xu Announces Chinese Yuan-Backed Crypto
OKGroup architect Star Xu, who was reportedly the accountable of a Shanghai Municipal Police investigation, afresh bankrupt his radio blackout on Twitter to acknowledge his plan to barrage a Chinese Yuan-backed stablecoin.
Embracing the course of technology, the barrage of a #CNY backed #stablecoin is an assured trend, and it will decidedly advance the internationalization of the RMB. OKCoin USA will barrage a absolutely adjustable stablecoin.
— Star (@starokcoin) October 10, 2018
Much to the annoyance of decentralists, who affirmation that stablecoins alone aid centralized institutions, crypto adept Xu explained that this anatomy of cryptocurrency is cyberbanking banknote “in essence.” Elaborating on this somewhat anarchic comment, the industry baton claimed that the alone aberration amid government-issued currencies and stablecoins is the average that they are transacted through.
As the digitalization of the apple continues, Xu expects for the enactment of a CNY-backed crypto asset to be allotment of an “inevitable trend,” as innovators believe that the tokenization of currencies common will alone bolster the all-around economy. He wrote:
“Today, the bulk of banknote in China’s calm budgetary arrangement is not small. A dollar-pegged stablecoin adapted by the US government will strengthen the assimilation of the US dollar 100 fold. Embracing this course of technology, the barrage of a CNY backed stablecoin is an assured trend, and it will decidedly advance the internationalization of the RMB.”
Capitalizing on this credible “trend,” the OKCoin architect explained that his exchange’s USA analysis will barrage a “fully adjustable stablecoin” in the abreast future, but did not accord any added capacity apropos the matter.
Taking his beforehand comments into context, it can be affected that OKCoin USA is currently exploring options to code, back, and affair a agenda asset that will accurately represent the Chinese Yuan.
Too Many Stablecoins?
Xu isn’t the alone one bent on the stablecoin bandwagon, so to speak, as a endless cardinal of crypto-focused companies, from barter behemothic Gemini to lesser-known startups, accept bidding absorption in this subsector. MakerDAO, which is home to the decentralized DAI stablecoin, alike admiring a ample advance from Andreessen Horowitz’s centralized crypto fund, which reportedly purchased $15 actor account of MKR tokens.
However, abounding accept bidding their skepticism and disinterest in these projects, as it is bright that the stablecoin bazaar is ever saturated. Even afore Xu appear OKCoin’s affairs to access the stablecoin fray, Travis Kling, who aloof launched the Ikigai crypto fund, took to Twitter to altercate bazaar over-saturation and over-capitalization. While his animadversion was aimed at the crypto and blockchain industry as a whole, Kling accurately alleged out stablecoins, alluding to the actuality that these new projects aren’t necessary, abnormally amidst a buck market.
Crypto over-capitalizes adorable areas of advance so abundant they become bad investments-
Oh Exchanges accomplish money? Cool, here's 250
Oh USDT has $3bn of mkt cap? Cool, 40 Stablecoins
Oh Fat Protocol Thesis? Cool, $6bn for Hashgraph
Oh Mining is profitable? Cool, 4x difficulty— Travis Kling (@Travis_Kling) September 26, 2018
At CambridgeHouse’s Extraordinary Future 2018 conference, Alex Tapscott, the columnist of the world-renowned Blockchain Revolution, gave added acceptance to the anti-stablecoin sentiment, stating:
“I’m affectionate of agnostic on stablecoins because what they do is actualize agent and counterparty risk. So you accept this bread that you can absorb cool easily, but in the end, it needs to be redeemable for some asset. So whoever holds that asset, holds the risk.”
So while it would be arbitrary to immediately discount OKCoin’s stablecoin venture or any added fiat-backed activity for that matter, it is credible that there are a few too abounding cooks in the stablecoin kitchen.
