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Crypto Monster Binance to Launch Joint Stablecoin Trading Platform

  • Yuri Molchan
    📰 News

    The largest crypto trader, Binance, is to release a joint market for stablecoins. No details are published yet, but Tether will reportedly be included


Crypto Monster Binance to Launch Joint Stablecoin Trading Platform
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Recently, the theme of the so-called stablecoins — tokens pegged to solid assets, such as the USD — is becoming popular, and various platforms have been launching them. The stablecoin that everybody has been aware of for a long time is the controversial Tether (USDT).

New market, new titles

In the new joint market that the trading behemoth exchange plans to launch, USDT, reportedly, will be included for sure. What is more, Binance is going to change its ticker to USDⓈ. This symbol, an S in a circle, is going to be a specific sign for marking stablecoins on this particular platform. Moreover, this is not only the new USDT ticker but for the new market for stablecoins overall.

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What is good about stablecoins?

A stablecoin works based on a simple mechanism: a management team stores money on a bank account, and these funds are the basis for the coins the platform sells to its users. There is a lot about trust here. However, there are also plenty of advantages: users do not have to go through the long process of depositing funds from crypto exchanges back to their banks.

Besides, these coins allow storing funds in them in a USD-denominated coin when customers are not trading, and that is what makes them stable.

More new stablecoins about to emerge

Even though there are several dollar-pegged stablecoins on the market already, all together they are incapable of covering the whole market when it starts prospering. For this reason, reportedly, Binance expects more stablecoins to appear from other platforms. In particular, these will be tokens pegged to fiat currencies different from the USD, such as the EUR or Asia-based currencies.

So, what Binance seems to be doing right now is preparing a market for these new stablecoins to appear and have an operational scheme when these assets start appearing later on.

Currently, the major stablecoins are Tether (USDT), USD Coin, TrueUSD and Paxos Stable Token. A while ago, the Winklevoss crypto twins also launched their Gemini USD coin (GUSD).

Another possible applicant for this honorable list is a coin that may come from Ethereum-based Maker DAO. Its functionality is quite different from the aforementioned coins that are nothing but dollar-pegged. The Maker coin contains several algorithmic options, so some experts doubt whether it can be called a stablecoin.

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It Could Take Bitcoin 22 Years to Retest Its ATH: UBS Analyst


It Could Take Bitcoin 22 Years to Retest Its ATH: UBS Analyst
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The fact that Bitcoin saw its price breaking above $5,000 at the beginning of April made everyone highly optimistic about the prospects of a full-fledged bull run. However, crypto bulls shouldn’t hold their breath since it could take decades for the number one currency to recover from its epic downfall.

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Bitcoin compared to other bubbles  

After comparing Bitcoin to other bubbles, UBS analyst Kevin Dennean came to a conclusion that BTC will most likely follow their lead, Business Insider reports.
However, here’s a catch – Bitcoin will have to undergo a long-lasting recovery, so it is not reasonable to expect another bull run in the nearest future. For comparison, it took the Dow Jones Industrials 22 years to reach its previous peak.   


‘We're struck by how long it took other asset bubbles to recover their peak levels (as long as 22 years for the Dow Jones Industrials) and how pedestrian the annualized returns from trough to the recovery often are,’ Dennean claims.

Bitcoin compared to other bubbles  

Picture: ©FactSet

With that being said, it is still not guaranteed that a certain bubble retests its ATH even after decades since a big burst. Nikkei, despite reaching its 20-year highs in October 2017, was still 50 percent lower than its ATH that was recorded in 1989.

Nikkei

Picture: ©ATLAS

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When you lose, you win

During the peak of the crypto market, Bitcoin was frequently compared to the infamous tulip mania, but these two barely had anything in common (except for the horrible stability of value). Hence, it hardly makes sense to apply a certain pattern and expect Bitcoin to behave in a similar fashion to other bubbles.

Historically, enormous price crashes actually benefited Bitcoin. As reported by U.Today, Bitcoin trader recently noticed that the BTC price rise 5.1-16.89 times every 70+ percent plunge. Crypto bulls have every reason to expect a similar outcome this time around.

'Shadow of bull statue on texture tiles floor metaphor of bull market is coming for stock market or investment asset' image by 123rf.

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