The Stablecoin War

[Gozzy]

With yesterdays announcement of USDC it is imminent that there is ongoing stablecoin war occurring,  how will the famous USDT respond to one of the leading entities in blockchain pushing out a competing asset? Let's not forget the new fiat-pegged asset to the scene TUSD, how will these entities compete with the biggest giant in the game and the easiest portal to liquidate and buy digital assets. Tether has executed some amoral approaches before, what stops them to execute with this in mind again in order to exit with some sort of profit? Coinbase and Circle are certainly in the lead with this war and it will be interesting to see how exchanges that utilise the other stablecoins will respond.

If you ask me, I think these assets are a huge risk and could drop to zero at any time due to the centralised ability of increasing the supply behind the majority of them. You may ask why do these assets incorporate such a method? It's obviously to keep the monetary value stable if a significant amount of revenue is induced to the assets eco-system. Regardless I'd rather just keep my revenue in fiat or in crypto, not in a variation that combines the two.

What's your take on this all BCT?

[Gozzy]

Bumping this, eager to hear people's perspectives.

[pranazzs]

indeed, the big markets have been delisted USDT.
and there is also one more stable coin, GUSD or Gemini Dollar.
More and more stable coin competition.
I agree with you, it's better to save on Fiat, or BTC, and also ETH.

[bartolo]

First of all, we'll have to see how many of these stablecoins will be really stable and will keep their value. Then, I guess people will choose one or maybe two and will forget the rest. I myself wouldn't trust in any of these stablecoins nor the entities behind them.

[Gozzy]

indeed, the big markets have been delisted USDT.
and there is also one more stable coin, GUSD or Gemini Dollar.
More and more stable coin competition.
I agree with you, it's better to save on Fiat, or BTC, and also ETH.

Do you know any of the markets that have executed delistings of these assets?

Indeed I forgot about the Gemini dollar, I actually thought TUSD was GUSD. There is far too much of them and all bare the same attributes but yet none are beneficial in other aspects, the only reason why USDC is taking the lead because it's launched by Coinbase. None of these assets have technological advantages to one another they are all of the same, upon contemplating on the topic I formed a PoC that would create a stablecoin that is much superior to the current implementations and one that fully decentralised. It's going down in the ideas book for sure but I feel there is no gap in the stablecoin market anymore, so idea is quite irrelevant.

[sherwinsamsung]

I think there would be no problem with multiple stablecoins or fiat-pegged coins as long as they were backed up by equivalent or higher amount of bitcoin.  such is the case of bitshares' bitusd and bitcny where these assets are backed by twice the amount in bts.  on usdt case, I am not sure if it is backed up by equivalent amount of btc.  if not, then big trouble will become imminent if majority of usdt holders will exchange it to btc.  that will surely lead to exchange collapse and another crypto catastrophe.

[Sanmark]

There are more "stable coins" every day. I think that their creators figured out thats free money. If US treasury can create money from thin air why wouldn't many others? Interesting thing in all that is new coins tusd, usdc and others are taking part of the market cap but usdt is not loosing any of his?!

[Gozzy]

I think there would be no problem with multiple stablecoins or fiat-pegged coins as long as they were backed up by equivalent or higher amount of bitcoin.  such is the case of bitshares' bitusd and bitcny where these assets are backed by twice the amount in bts.  on usdt case, I am not sure if it is backed up by equivalent amount of btc.  if not, then big trouble will become imminent if majority of usdt holders will exchange it to btc.  that will surely lead to exchange collapse and another crypto catastrophe.

Yes i've noticed that BTS have the whole stablecoin approach differently, interestingly enough bitCNY overtook TUSD in volume just afew days ago! Indeed it's a quite controversial topic and i'm afraid it will end quite badly, I think it's best to stay away period. The collapse of these assets could have a huge effect on crypto as a whole is the problem.

[Gozzy]

There are more "stable coins" every day. I think that their creators figured out thats free money. If US treasury can create money from thin air why wouldn't many others? Interesting thing in all that is new coins tusd, usdc and others are taking part of the market cap but usdt is not loosing any of his?!

It's because of Tether's printing abilities they are always increasing the supply to keep the value stable with people dumping mostly.

[anobtc]

Perhaps because of the current market bearish and any new crypto currency listed on the exchanges is depreciated, the stable coin issuance secured by fiat money is the safest way.

[benalexis12]

StableCoin is a really Sh*t thing for me. There's a positive and negative side of it. Bitcoin will be popular but in the negative side it will be manipulated so on and on. Well let see what will happen in the next few months.

[Reid]

Same.
I would rather pick fiat more than those who pretends they are fiat and yet also a crypto currency.

This kind of things have been all over. Look at how Tether is now. An immediate escape of whales and a way to play the trading system.

Yeah trading websites are thanking them with all that crypto currencies they are making profit by now.
But at the end of all this, crypto like Tether will be out in a sudden without a single trace and those who bought them cannot even get their capital back.

[CryptoAssasin]

I understand that cryptocurrency is a virtual money and maybe the reason why USDT and other stable coin was created is because it needs to be partnered with stable virtual currency coin so that the concept of "Cryptocurrency" will be stabilized. The most scary thing about this stable coins is that it can definitely drop down to zero immediately when they will be accused as scam stable coin. I actually don't wanted to do my business with these stable altcoins as much as possible but they are reliable in times of red market.

[javadsalehi]

One of the biggest advantages of cryptocurrencies is their limited supply. But the total supply of such coins can change. So, One of the biggest problem of fiat which is money printing exist in these coins. Also, There is no guarantee that their price will remain fixed. If their price drops to zero, there is no one responsible for that. Tether proved that it is possible.

[iconoclast]

I am wondering if we might actually see the market for stable coins fragment even further. I like trading on DEX's rather than CEX's. Could we see a future where we see stable coins specific to each platform to allow for their exchange on DEX's? Some people also like privacy, could we see the introduction of dollar pegged coins that are untracable?

[Haven Coffey]

There are a lot of Stable coin out there in the market. But, how many of them will remain stable, is the question that is important. People will choose only the best amomg this. How much stable others will be after that is almost clear. A lot of investors are still weary of these coins.

[cryptohunter]

I would prefer the elegant and trustless, fully decentralised and transparent version of a smoothing peg like bitbay

[GenesisDominguez]

Well, the price might be stable, but the market of stable coin doesn't seem that stable now. The fiat, bitcoin and some good altcoins are still there which are ready to give safer service, so you can always trust in those. But in another word risk might bring you fortune, you can try this stable coin too.

[Mikeschmitt]

Before coming to a verdict on the matter we'll have to see how many of these stablecoins be stable enough to maintain value. With that people will be able to choose one or two and disregard the rest but, how much we'll be able to trust these stablecoins and the entities behind them is something we'll find out soon enough.

[Aroredus1]

The situation of stable coin is really delicate right now. Tether almost created a scandal and it was ridiculous. I think it's better not to engage in any stable coin momentarily.