OkEx Supporting USDk could be Timely

[Andrew Parker]

The crypto market is unique. It is both hot and cold. Rush and stable. It could be because it is dominated by retail investors. Yet again it could be because of the thin liquidity. After all, the total market capitalization of the new investment space is $25 billion shy of $300 billion. As such, it is far from Gold’s market cap estimated at $7 trillion.

A level deeper and crypto is a mere 33 percent of Amazon’s and Microsoft’s market cap that is flirting with the $1 trillion mark. Behind all this is non-participation from institutions. They are a worried lot. Regulators are breathing down their necks and the US SEC in particular is keen on protecting the space.

It’s all to do with volatility and many reckon the rollout of a trusted tool, a conduit towards stability, a safe haven during crypto storm while still maintaining its decentralization and abiding by the spirit of decentralization would unlock the crypto dragon and the space would flourish a result.

USDk and OkEx

Of the many Stablecoins, OkEx may end up adding their support for yet another regulated crypto Stablecoin based on the Ethereum platform and forged by the dictates of the ERC-20 standard. Although unsubstantiated, rumor has it that Ok Group shall launch an USDk, a reliable Stablecoin together with Prime Trust, a Nevada companied that is qualified to act as a fiat and crypto custodian.

This is just weeks after Star Xu, the CEO and founder of OkEx, one of the world’s largest and fluid exchanges, shook hands with Prime Trust. In their agreement, the two shall collaborate and in the end roll out services that are diverse, secure and above all, adhering to regulation.

In their homepage, the issuers of USDk says the coin will be guided by smart contracts that are audited by Certik and SlowMist, that Prime Trust coffers shall be available for public audit and most importantly liquid thanks to their large use base.

Tether Troubles

However, we cannot railroad anything and even insinuate that the support will come automatically based on Star Xu links with Prime Trust. However, going through OkEx social media posts, it is clear that that they are readying themselves for another Stablecoin aside from Paxos, TrueUSD, Paxos and GUSD.

There are posts on Stablecoin preference, what the community demands from the coin issuer and those touching on their Stablecoin holdings. If anything, this would be timely, coinciding with the time that the world’s most liquid Stablecoin, USDT, is under siege from the community.

This stems from their lack of transparency and recent revelations that their coins are after all not backed by 100 percent cash but a conflation of cash, cash equivalents, Bitcoin and other digital assets.

https://www.okex.com

[jvdp]

This is great!! Just came across different thread. All the while I was comparing Cryptos with these markets in childish ways. Good to know the facts, especially with the gap of Gold. Okex is a very popular thing, so let see where they move with this.

[reda]

I won’t really prefer to say much at this stage unless this is confirmed. I would take this as purely a rumour, nothing else.

[FantasyGold]

I find this good. I think OkEx should definitely continue their support for such stable coins. There is huge potential with these and it’s great that it’s getting understood! It only helps everyone.

[Hung Yu So]

Wow….. All these years of investment in Gold and I did not knew Gold market was $7 trillion!

Maybe Cryptos will reach there by 2025!

[Kalm]

A very good and positive move this. Although, OKEX is fairly popular name, but this kind of move is surprising to me. It’s very bold and exciting but no way to predict the outcome of it now.

[BlokbizICO]

I don’t want to sound stupid but I did not understand whether OkEx has approved the listing or not?

By looks of this it seems they are considering but there is nothing confirmed yet?

[bozo333]

Hmm, this seems quite interesting. I fully back OkEx to make the right move as they have done so far to reach where they are today. Too early to judge how this is going to end up but seems to be a quite interesting development.

[AeroKing]

Thanks for sharing. I personally will be very very happy if this happens.

I really hope OkEx moves forward with this since it’s a really good development and will boost them too!

[Sony.UK]

Frankly I don’t have idea if this could be a good move or not. But even if this move is right, I can’t see it getting too much appreciation. What I find good with Okex is that they are willing to do something different compared to other exchanges.

[cryptjh]

It is always good to see new stable coins, I don't really trust Tether, but it's often the only option if you want to sell bitcoins or any other crypto to dollars.
The only problem with all those new stable coins is that the market for each coin cut turn to small if they all have to compete.

[figmentofmyass]

Although unsubstantiated, rumor has it that Ok Group shall launch an USDk, a reliable Stablecoin together with Prime Trust, a Nevada companied that is qualified to act as a fiat and crypto custodian.

so this is basically a rehash of TrueUSD, except launched by okex?

talk about a saturated market. USDT, USDC, GUSD, PAX, USDS, TUSD, now USDk......not to mention the decentralized stablecoins like DAI.

okex (previously okcoin) was always fairly lax on the regulatory front. for those worried about the legal rigidity around GUSD or USDC, this may be a good option that doesn't come with all of tether's legal worries. assuming the market gains any traction, that is, considering how much competition already exists.

[CryptoBry]

This can be coming  soon and with the support of the OkEx platform I am sure USDk can be a good additional player to an array of many stablecoins already crowding in the market. Whereas before when USDT dominated the market, now we have a flood of many new projects vying for the chance to get a pie of the market. Let's see how things will turn out for this development.

[Ailmand]

A very good and positive move this. Although, OKEX is fairly popular name, but this kind of move is surprising to me. It’s very bold and exciting but no way to predict the outcome of it now.

Well, we should actually wait until it is officially launched. There was no link to read the full content and official announcement regarding the news.

[magneto]

I don't think that it's necessarily a groundbreaking move, or anything like that.

Exchanges have their own motives and objectives to achieve by launching stablecoins, just like JPMorgan and other financial institutions. Even if Tether goes down, there is no one saying that one stablecoin will act as the clear alternative. There are simply that many in the market right now.

I don't think another one of the same product essentially is going to change much at all. Besides, stablecoins are intrinsically risky given its centralised nature and the fact that you need to trust a third party to hold your funds @ full reserve.

[1Referee]

talk about a saturated market. USDT, USDC, GUSD, PAX, USDS, TUSD, now USDk......not to mention the decentralized stablecoins like DAI.

That's great for the prices in general. Stablecoins prop up the prices and are less likely to be withdrawn because of most people holding it don't want to deal with the hassle of verification and whatnot. Fiat is easily withdrawn because to trade it in the first place you have to be verified, which makes it way easier for people to withdraw.

It will be an interesting event once Facebook's stablecoin will actually be listed on most crypto exchanges. It will make it easier than ever before to buy crypto, and with how large Facebook is, there very likely will be billions of it in circulation. More bullish than bearish I would say.

[davis196]

The 7 trillion gold market cap will never be reached by any cryptocurrency even bitcoin.People are too used to gold,crypto is just too new and revolutionary.
It will be great if we get to the 1 trillion market cap,but the governments+people like Ver and Wright might try to ruin everything.

[metalglowd]

Actually this is good news, but making a comparison with Tether is a wrong move, because in the end both are in the form of Stablecoin, where both of these have the same function. I didn't get the point why should i impressed with this one.

[Kevin77]

It is not just tether that we hate, its the centralized stablecoins most of the time. Fortunately USDk is not like that but I am still not warm with the idea of a stable coin.

A coin should not be stable at all, if there is a decentralized stablecoin then it means there is a limited supply and there will be a limited price on it since its stable and over the years since the inflation affects the economy there will be need for more and more of that coin hence there will be a need to change the total supply, if added more that means centralized, if not added more it means not gonna be enough. Hence, in the long run all stablecoins are destined to die according to my idea however maybe I will be wrong on this one, maybe they will prove me wrong and do a great job, lets hope so because we really do need a decent one.