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Fiat-backed crypto booming amid uncertainty

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Despite this year’s uncertainty that has plagued the global economy, 2020 will go down as the year of the stablecoins due to the digital sector’s tremendous growth, with new developments emerging across the board. While some attribute this growth to the booming interest in decentralized finance among crypto enthusiasts, others see it as a bullish trend that confirms the inflow of fiat currency to the crypto ecosystem.

As the DeFi sector keeps growing, so too does the popularity of stablecoins, used to gain high returns from various decentralized lending projects. Stablecoins are also useful for their ability to bridge the gap between fiat currencies and digital assets. Stablecoins started off the year on a high note, as their cumulative transactional volume surpassed the $90 billion mark in a financial quarter for the first time ever. Although Tether (USDT) still holds the lion’s share of the stablecoin market, Dai and USDC indeed saw growth during 2020.

From conception of the first stablecoin in 2012 with the proposal of the Mastercoin project as a way of tying cryptocurrencies to traditional assets to mitigate price volatility, developers have grown accustomed to using the U.S. dollar as a go-to stable asset.

Currently, however, developers are experimenting with other stable assets such as gold, other fiat currencies and even cryptocurrencies. Here is an updated look on the current state of stablecoin adoption as a list of the top performing stablecoins in the market.

USD-pegged stable coins

Tether (USDT)

Like every other stablecoin, Tether was designed to enable investors to store profit from crypto trading on a dollar-pegged cryptocurrency. To quote the website: “Every Tether is always backed 1-to-1, by traditional currency held in our reserves.” This means that for every USDT coin, there is an equivalent $1 in the company’s reserve. Currently, Tether is the most popular stablecoin, with a market capitalization of over $15 billion and a daily trading volume exceeding $40 billion, according to Coinmarketcap.

Despite claims by Tether’s issuing company that the tokens are 100% backed by liquid reserves, in the past, numerous parties have raised doubts about the company’s claims. But controversy aside, the number of USDT in circulation has recently increased from slightly over $4 billion in circulation at the start of 2020 to a whopping $15 billion. Most experts believe that DeFi has been a huge contributor to the mass-minting of USDT.

Furthermore, the rapid growth of USDT’s dominance has seen the coin overtake giants payment platforms like Bitcoin and PayPal in terms of average daily transfer value, at over $3.5 billion. With its increased popularity, Tether now plans to migrate a majority of its supply to faster networks, as the Ethereum network continues to experience increased gas fees.

USD Coin (USDC)

Issued by Circle, a blockchain-centric financial services provider, USD Coin was launched in 2018 as a stablecoin pegged to the U.S. dollar on a 1:1 ratio. In terms of the stablecoin’s transparency, Circle claims on its website that USDC reserves are monthly audited and published for the public by top accounting services.

Like Tether, USDC has seen rapid growth, with an increased circulation above $1.8 billion in the past six months. Just recently, Centre (a consortium founded by Circle and Coinbase for the development of management of USDC) announced the expansion of USDC from Ethereum to additional blockchains. The move is set to ensure that USDC remains flexible enough for large-scale financial innovations emerging among DeFi projects.

Paxos Standard (PAX)

According to its website, Paxos, the company behind the PAX Standard stablecoin, says that its stablecoin is the most liquid and well-regulated in the world. With its listing in over 150 exchanges, PAX boasts of over $100 million in daily trade volume and a total of $2 billion minted PAX coins in circulation.

Like its peers, PAX is packaged as a digital dollar that can be used to move money swiftly across the globe and at any time. The stablecoin is built on Ethereum’s ERC-20 protocol, and customer’s funds are held in segregated accounts insured by the Federal Deposit Insurance Corporation.

Binance (BUSD)

Launched via a partnership between one of the biggest crypto exchanges and Paxos, Binance USD (BUSD) is a stablecoin pegged to the U.S. dollar. The stablecoin has so far received approval from the New York State Department of Financial Services. This allows other financial institutions in the NewYork area to custody BUSD without needing prior custody licenses from the NYDFS.

In a race toward establishing itself as the go-to stablecoin for DeFi applications, Binance USD just recently launched on Dapper Labs’ Flow blockchain. Through its partnership with Dapper Labs — the team that pioneered crypto games such as Crypto Kitties — Binance USD is expected to open doors for developers looking to build stablecoin-powered DeFi applications. The BUSD is also quite popular on the Binance Smart Chain, which is a smart contract-enabled blockchain designed to accelerate the development of DeFi protocols.

Thanks to Binance’s market dominance, BUSD has had one of the most explosive growth rates, with a market cap that grew from about 20 million at the start of the year to its current mark above $500 million.

TrueUSD (TUSD)

While Tether is criticized for its centralized management and lack of transparency, TrueUSD claims to do the very opposite. TrueUSD is a USD-pegged stablecoin based on the TrustToken Platform, and claims to run on a transparent ethical code that provides the public with real-time proof of funds stored in an escrowed bank account.

Not even the TrueUSD team has access to the escrow account, as in place of a managing team, smart contracts are put in place to help maintain the peg between the U.S. dollar and the TUSD coin at 1:1.

In March last year, TrustToken partnered with an accounting firm to develop a dashboard that enables third parties to view TUSD in circulation with the collateralized fiat funds.

Apart from TrueUSD, the TrustToken platform is also home to stablecoins backed by other national currencies including the British pound, the Australian dollar, the Canadian dollar and the Hong Kong dollar. All of them were launched in 2019 and are mostly actively traded on Uniswap, a decentralized exchange that hosts a variety of DeFi protocols.

Part two: Projects pegged to other national currencies

XSDG Stablecoin

On Oct. 5, Xfers, a Singapore-based payment company, launched a Singapore dollar-pegged XSGD stablecoin. As the first Singaporean dollar-denominated token, XSDG creators expect that the coin will provide both businesses and individuals a means of exposure to the crypto industry.

To ensure easy access, the token can freely be withdrawn and transacted, even with noncustodial wallets. Also, given that the stablecoin claims to be compliant with the Financial Action Task Force’s travel rule, financial institutions can use it for cross-border money transfers as well. Like most stablecoins, the team behind XSGD is pushing for the token’s adoption within the DeFi ecosystem, with it currently being available on Ziliswap as an ERC-20 token.

While speaking to Cointelegraph, Aymeric Salley, who heads the project, said: “Now is the time for stablecoins pegged to other national currencies such as the Singapore Dollar to emerge.”

Saga (SGA)

Saga, a U.K.-based blockchain company, has launched a stablecoin alternative to Facebook’s Libra in late 2019. Similar to Libra, SGA maintains its stable value by being tied to a basket of national currencies. What sets Saga apart from the Libra proposal is that the value of the SGA token is pegged to bank deposits in the International Monetary Fund’s special drawing rights. The IMF’s special drawing rights is a basket of assets that are heavily weighted in the U.S. dollar as well as the euro, Chinese yuan, British pound sterling and Japanese yen.

Additionally, unlike Libra, Saga will not profit from the stablecoin, although it will act as the primary issuer of the token. While speaking to CNBC, Saga’s founder Ido Sadeh Man said that the stablecoin’s objective is to act as a complementary currency for cross-border payments, in that consumers would use it to make a payment on ecommerce platforms such as Amazon. Due to its lack of regulatory clarity, Saga is currently unavailable in the U.S. and Israel.

EURS

Backed by the euro, the EURS stablecoin is issued by Stasis, a blockchain-related company that aims to tokenize traditional assets. The company claims that it pulls together various licensed financial intermediaries, including accounting firms and law firms, to ensure compliance and stability of its tokenized assets.

The EURS stablecoin was launched in June 2018. Built on Ethereum’s streamlined EIP-20 standard, EURS was pioneered as the first euro-backed stablecoin, and also boasts of providing continuous transparency through daily statements of its liquidity providers. So far, EURS has issued nearly 32 million coins, with a daily trading volume sitting slightly above the $1million mark.

Monerium

Monerium is a fintech company founded in 2015 that hopes to simplify access to digital currencies. The company launched its first stablecoin in January 2019 after a $2 million seed round led by Crowberry Capital, with the participation of ConsenSys and Hof Holdings.

Monerium’s digital currency is designed such that the digital equivalent of major fiat currencies is issued to customers who can customize their currency basket. Monerium claims to be decentralizing finance by enabling open regulatory and technical standards to support its stablecoin. Currently, Monerium’s services are available across six countries: the U.K., Germany, Denmark, France, Lithuania and Sweden.

Can stablecoins outshine other currencies?

The reported increase in the overall supply of stablecoins has left many market watchers confused. If analytics from Coin Metrics are anything to go by, April 20 was the first time the number of stablecoin in circulation passed the $9 billion mark. Some analysts argue that the increased supply of stablecoins is a bullish signal as people hedge their positions. Others believe that it’s a bearish signal of people exiting the crypto space.

However, this growth in stablecoins comes at a time when various jurisdictions are also starting to warm up to the idea of creating their own stablecoins. As calls to tokenize traditional assets continue, newcomers into the stablecoin market, such as XSDG Stablecoin, are bound to become commonplace.

With increased volatility, more developers will keep an eye on the developments happening among stablecoins to create financial innovations that mitigate volatility. The question now is whether stablecoins like Tether will overshadow the utility of Bitcoin, Ethereum and other cryptocurrencies as cross border payment protocols, as well as the fiat currencies they are pegged to.



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Ultimate Online Trading Solution for Anyone

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Tradelax offers a wide array of tools. Customers can access more than 200 financial instruments and trade stocks, commodities, currencies, and indices.

Within the last 30 years, the financial industry has become the fundament of global economics. Trading futures and stocks assist organizations in creating additional sources of revenue for innovation and expansion. The development of the Internet allows anyone who has a computer to engage in trading without any limitations. However, it’s worth remembering that online trading is inevitably interconnected with certain risks, including scams, private data exposure, and fraud. How to avoid all of them? Well, first of all, you’d need to choose a reliable trading platform. Fortunately, we can suggest one – Tradelax. This article will provide a detailed Tradelax review.

Why Choose Tradelax?

Tradelax is the ultimate solution for anyone willing to engage in online trading. There’s no need to possess any experience in the financial industry to join. Tradelax offers guidance and training to all customers, and they can receive an overview of the platform fast and conveniently. There’s a whole team of employees dedicated to training newcomers; so, you’ll surely find assistance when needed.

As the leading trading platform, Tradelax offers a wide array of tools. Customers can access more than 200 financial instruments and trade stocks, commodities, currencies, and indices. All prices are updated based on live feeds from global stock exchanges. So, Tradelax’s clients are provided with the most accurate information. The platform offers a comprehensive solution for managing your portfolio, purchasing or selling assets, and receiving professional training.

It would be impossible to receive profits from trading without a proper market overview. Tradelax knows about this necessity, so, it has designed a convenient Stock Screener tool. It was created to assist both newcomers and experienced traders in reaching their goals. Stock Screener allows you to filter out stocks and companies in the most convenient way and obtain the needed data about any particular organization. There’s also a possibility to arrange companies by market capitalization, growth rates, or receive the highest/lowest market values of stock for a given period.

Technology and Security

When it comes to online trading, security is the ultimate consideration. Since you’ll be providing the platform with a set of personal information, it must do everything it can to protect the customers’ data. Tradelax recognizes the importance of proper security measures. So, it has implemented a comprehensive set of policies. You can actually see a proof of the site’s reliability right in your browser. In the URL typebar, there is a lock symbol, which suggests that the connection is protected by 128-bit SSL encryption. Through clicking on the lock, you can obtain the details of a digital security certificate issued to Tradelax. This information provides a clear answer to “Is Tradelax a scam?” once and for all.

Types of Accounts Offered by Tradelax

All Tradelax reviews mention a wide range of account types that were designed to suit every customer’s needs:

  • Starter. This account would perfectly suit the needs of newcomers. It doesn’t involve any deposit fees or up-front commissions, allowing you to explore the market without limitations. You’ll also be provided with a personal account manager and a bonus policy.
  • Advanced. This type is for more experienced traders who have already attained some knowledge of the market. The advanced account includes all features of the Starter pack while adding access to education tools, regular market update emails, and a 25% discount on swaps.
  • Expert. Expert account owners are provided with assistance from a senior account manager and receive live updates on the most important news. This account also allows hedging and including a fixed spread option, alongside advanced training from an experienced consultant.

What Else You Should Remember about Tradelax

You can leave all your worries aside. Tradelax.com is not a scam. The company is a trustworthy online trading platform, and it possesses all the necessary certificates.

And you can join the platform absolutely for free. There are no deposit fees charged for setting up an account.

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Global Family Office Summit Takes Place Virtually With Key Highlights Including Education, Trust, and Responsibility

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The Global Family Office Summit that took place via Zoom platform on October 20 brought together key players to discuss issues that high value investors are willing to address.

Its primary outlined mission is to connect different disruptive tech leaders from all over the world, hence solve the world’s challenges using technology especially blockchain, cryptocurrency and artificial intelligence. Being the first time the event was held, and specifically virtually due to the ongoing coronavirus pandemic, GDA group is looking forward to many more successful events and fruitful opportunities.

The GDA group, dubbed a financial institution that is largely focused on disruptive technologies, came up with the noble idea of bringing together not only influential tech leaders but also high net worth individuals interested in the tech space.

Notably, the GDA group is the company behind GDA Capital and also Secure Digital Markets. Whereby the latter is a capital markets firm that is focused on merchant banking especially for digital assets. In addition, Secure Digital Markets is also a trading platform that has processed over $2 billion in OTC digital assets. Hereby making it a vital corporation in the crypto industry with its investments backed by institutions and wealthy individuals.

Details of The Global Family Office Summit

During the virtual event, various speakers got a chance to highlight their minds. In general, the summit identified that the industry has to invest more in education, trust between customers and services providers and responsible firms.

“The Global Family Office Summit has identified three pillars – education, trust and responsibility to give back,” said Michael Gord, one of the event organizers from GDA capitals.

According to Candace Johnson, a serial entrepreneur and key speaker during the event, she thinks the blockchain technology should be used to build a better world instead of seeing it as a disruptive technology. She noted:

“Data-driven algorithmic technologies are responsible for today’s digital transformation in almost all fields, from hard sciences, to social sciences, to the humanities, as well as in a variety of sectors, from health and commerce, to education, law and the arts.”

Another key speaker who participated in the event was AI Burgio, founder of DigitalBits. According to Burgio, investors should identify an opportunity to address a large-scale problem. Nicholas Verwilghen, one of the speakers noted that secure custody of assets and alternative niche projects is what will drive institutional investors crypto adoption. Other key points were discussed during the event that are expected to drive the creation of the next tech unicorn with the latest technology especially in blockchain and AI.

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A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies.
Mythology is my mystery!
“You cannot enslave a mind that knows itself. That values itself. That understands itself.”



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Stablecoins went wild in the days before Bitcoin’s recent surge

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In the days preceding Bitcoin’s latest rise in price, stablecoins went wild, exhibiting some largely unprecedented behavior.

Stablecoins: all stablecoins inflow transaction and address count of all exchanges. Source: CryptoQuant.

On October 18, stablecoins moving to exchanges reached record highs of 60,000 and 56,000 respectively, according to data from CryptoQuant. The outlet’s data tracked USDT on Ethereum, PAX, USDC, TUSD, DAI, SAI, BUSD, HUSD and USDK. When it comes to the total inflow of all stablecoins in terms of the dollar value, no extraordinary trends were detected.

Stablecoins inflows to exchanges. Source: CryptoQuant.

CryptoQuant CEO Ki Young Ju told Cointelegraph that, although the inflows were not huge in terms of dollar value, they signified a bullish trend among retail investors:

“Depositing from more retail investors usually means the market sentiment is turning into bullish.”

Ju believes that the market’s high address and transaction count indicates that inflows were coming from a large number of retail investors rather than from a few large players. The assumption is that investors send stablecoins to exchanges when they plan to convert them to other crypto assets — primarily Bitcoin. Yesterday, Tether minted 450 million USDT on the Tron (TRX) network. The company’s CTO Paolo Ardoino clarified earlier that the amount was authorized, but not issued:

“PSA: 300M USDt inventory replenish on Tron Network. Note this is a authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests.”

Tether market capitalization 2020. Source: CoinMarketCap.

Tether’s market capitalization quadrupled in 2020, beginning the year with $4 billion and rising to $16 billion at time of publication. Meanwhile, Bitcoin balances on major exchanges fell below 2.5 BTC for the first time in years.





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