[VIDEO] $174 mil dollars entered crypto in last month via stable coins

[KnightX]

I have analyzed (USDC, GUSD, PAX, TUSD) stable-coins for the last month period (6.11 - 6.12)


Over $174 000 000 had entered market via them, this calculation is done by subtracting pas supply to newer one.



How can be printage of coins BULLISH?

USDC, GUSD, TUSD and PAX have all audit-able records in which they're providing balance of their acc. So usually if institution wants to enter Crypto market in the way of crypto, stable coin issuers create tokens for them. It's elegant way for institutions to buy crypto assets, without big reliance on BTC. Most issuers make their profits that way.

Stablecoin supply can't be increased by people selling into stablecoins, that increase their MARKETCAP,  in order to increase supply stablecoin issuer must have auditable balance. (That's why I have selected only these 4)


DISCLAIMER

That said it can lower the overall market-cap because of lower number of market-transactions the institutions have to make, instead of buying BTC (increasing value of BTC, but even USD value of asset, because of BTC-pair ) then buying asset (increasing value of asset once again), they just buy (US-some-stablecoin) and then asset. But that's are imho just growing pains of separation from BTC pairs.



I have deliberately skipped other stable-coins, because I haven't found their audit reports or their marketcap was low. I have, also skipped DAI because, increase in supply is not new money into the system.


My video analysis with other data like trends and onchain data (Deposits, DAA, etc)

https://www.youtube.com/watch?v=dRK46uLbubM



Publish0x article:

https://www.publish0x.com/blockchain-mysteries/over-174-mil-dollars-entered-crypto-in-last-month-via-stable-coins-xgjp

[cryptolab111]

Thank you so much! That is very interesting...

[cindygirl]

174m is nothing in terms of the crypto market and you cannot even be sure that this money entered the market. Just because a stable coin is being printed does not mean it's actually being bought and used. It could be that $174m entered in to PAX but all $174m came from tether, that tether still exists, it will just be sat in an account belonging to Tether somewhere until it's demanded.

[Kevin77]

They didn't do it like for free. That is the point of stable coins, lets say you have 100 million dollars, you put it in a bank and than show that as proof of your 100 million stable coin has a backing from the money you put into the bank.

Let's assume people believe you and started to give you bitcoins for the stablecoin you have, now you have 100 million in your bank account that is proof of stable coins + you get bitcoins, lets assume everyone trusted you even more and started to give you more and more.

Eventually you will have 100 million dollars in your bank account and have 100 million dollars worth of crypto currency as well. With those currencies you could basically sell all of them at once and withdraw it to cash. Now, you have 100 million dollars in your bank account and another 100 million in another account. You basically made 100 million dollars for free. Its a no brainer for people who can actually do it.

[gudfavourBTC]

Thank you so much! That is very interesting...

It is interesting but I think there is a bit ambiguity about the inflow of the amount of money that is mentioned. It could be a shift of investment from one coin to another as well so chill out and stay stick to your strategy.

[aervin11]

Eventually you will have 100 million dollars in your bank account and have 100 million dollars worth of crypto currency as well. With those currencies you could basically sell all of them at once and withdraw it to cash. Now, you have 100 million dollars in your bank account and another 100 million in another account. You basically made 100 million dollars for free. Its a no brainer for people who can actually do it.

What he meant was that the stable coin (USDC, GUSD, TUSD or PAX) is backed by the same dollar value in a bank, not in the name of depositor but on the token itself. Whoever owns a stable coin is safe from anything (whether manipulation or crypto downfall) because the token represents a dollar deposited in a bank.

174m is nothing in terms of the crypto market and you cannot even be sure that this money entered the market

It's a big thing actually. It's buying a stable coin out of these exchanges who are offering it available, and I think it's a safer way of entering the market because it wont print unusual green candles. Btw, these stable coins are also cryptocurrencies but only is backed by dollars to maintain it's stability and safety.

[dothebeats]

Buying in to the crypto market using stablecoins is one thing, but apparently more and more money is flowing into crypto via OTC trading, and that's what's more interesting. $174-M is a small amount on the grander scheme of things, especially in a $100-B market cap of cryptocurrencies, but that doesn't mean it won't make any difference. People who want to stay safe whilst diving into the world of cryptocurrencies would look at stablecoins, and these coins might be the tools that could potentially trigger another bull run and at the same time, a catalyst for a massive crash should something 'fishy' happens in the future (hacks and the likes).

[nelson4lov]

It's not every time the printing of new stable coins results in more money coming into the market. We saw this with a couple of tether USD printings during the bear market Q3 2018. But I think OP is right this time. Coz the market has picked up just a few days after OP made this post. I have this feeling 2019 will be good with all this stable coins.

[cindygirl]

174m is nothing in terms of the crypto market and you cannot even be sure that this money entered the market

It's a big thing actually. It's buying a stable coin out of these exchanges who are offering it available, and I think it's a safer way of entering the market because it wont print unusual green candles. Btw, these stable coins are also cryptocurrencies but only is backed by dollars to maintain it's stability and safety.

But it still could be that it was just funds being redistributed from one stable coin to another. Even if it is new money I stand by my point that it is not hugely relevant. While I understand marketcap isn't a true reflection of the money in a market, it still gives a vague idea. 174m in to a marketcap of over 100bn is a drop in the ocean.

[minairia3]

174m is nothing in terms of the crypto market and you cannot even be sure that this money entered the market. Just because a stable coin is being printed does not mean it's actually being bought and used. It could be that $174m entered in to PAX but all $174m came from tether, that tether still exists, it will just be sat in an account belonging to Tether somewhere until it's demanded.

I agree as this is only a volume of one crypto with USDT parity in binance. Like now the BCH tandems more than this. So this is nothing compare to the billions that have entered in the space in just a matter of minutes to hours.

[suryasuryo00]

what makes a coin stable?

1. Price, price has enough influence to define that the coin is quite stable.
2. Developers, developers act as someone who can make prices stable for mid-investment or long-term investment.
3. Community / Trader, acts as a group to make the value of coins still good in the eyes of new investors.
4. Avoid taking the Pump and Dump scheme.
5. Time,a stable coin is recorded by a year not a month from their cap.

[Pursuer]

you can't say that amount has "entered the market" because it hasn't. like many other premined altcoins, these coins are also considered premined and like all of them their "market cap" which you are basically reporting here is fake too. what "enters the market" is the volume that is being in use not the total coins they have created.

It's elegant way for institutions to buy crypto assets, without big reliance on BTC.

why would anyone in their right mind would want to do that?!!!
there are going to be two categories of those who enter the market:
1. those who want to enter some altcoin for some  weird reason! these will buy it directly with fiat since there are enough ways of doing that. using these centralized tokens means paying twice the normal fees while taking a huge risk of using something that is NOT stable and can disappear any moment!
2. those who want to make profit on their bitcoin. they obviously don't care at all about these centralized tokens unless they want to transfer funds between exchanges in which case they would use the most liquid stable coin which happens to be Tether!