Another firm that supports crypto trading and another stablecoin announcement. Doesn’t look like the craze of stablecoin is ending soon. After Gemini and Circle, its eToro that has announced the launching of its own native stablecoin.
“Absolutely yes!” Says CEO of eToro for stablecoin
It was Finance Magnates London Summit and the attendees weren’t disappointed as Yoni Assia, CEO of eToro took the dais to give a presentation on “The rise of tokenized assets” but ended up slipping a rather important announcement.
“Will eToro issue its own stablecoin in 2019? –absolutely yes!”, said the CEO.
— Finance Magnates (@financemagnates) November 14, 2018
There were no exact timelines nor any further information given out about the same, but this statement gave an insight on what could be expected from the multi-asset brokerage company registered offices in Cyprus, Israel, and the United Kingdom.
The announcement comes near the tail end of a busy year for eToro. Among other things over the last several months, the company formed a major advertising partnership with several Premier Football Leagues, and announced the creation of a “non-speculative” cryptocurrency that will pay interest to individuals who “have less.”
Stablecoin issuance has been one of the more significant trends in exchanges throughout the latter half of 2018. Tether, the world’s first and formerly most-popular stablecoin, has come under fire over the course of the last two years because of its failure to adequately address concerns over its lack of an audit. Additionally, the price of Tether fluctuated quite a bit last month, leading some to question the stability of this ‘stablecoin’.
Stablecoins, a class of blockchain-backed cryptocurrencies which operate by pegging their value to an extrinsic and identifiable source. Where companies and startups were flocking to the ERC-20 token model for ICOs in 2017 and the first part of this year, the stablecoin model is becoming an increasingly attractive proposition, particularly for investors exhausted from the ongoing bear cycle. Compared to the price volatility of traditional cryptocurrencies, which exhibit a large amount of fluctuation for even intra-day valuation, stablecoins provide an extent of stability to investors and merchants looking to participate in the new form of digital asset.
Stablecoins have been in demand and more companies are trying to launch their own stablecoins to take advantage of this demand. A number of other publicly available stablecoins have been put onto the market–TrueUSD, Paxos Standard, and Centre is just a few. Additionally, cryptocurrency exchanges are beginning to create their own stablecoins more often. Circle and Coinbase launched the USDC; Gemini recently issued the Gemini Dollar.
What is your view on this stablecoin craze? Do let us know your views on the same
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Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.