Since the dawn of the age of cryptocurrency, volatility has been a major problem. Aside from causing a host of issues internal to the community, volatile cryptocurrency prices serve as a barrier to new investors who might be interested in contributing both money and innovation to the crypto space. The community needs the involvement of both retail and institutional investors if it is to eventually see mass adoption, but institutional and retail money alike is fearful of a lack of relative stability in investment.
To try to respond to this issue, several startups were created to try to come forward with a viable and usable “stablecoin.”
Stablecoins are just cryptocurrency coins that, for one reason or another, never really gain or lose substantive value. This means that the crypto is not a good one for investing, but can be great for both gauging the success of other investments and as can be used as a tool to facilitate trades and hold funds not yet being converted to fiat money.
So far, the most recognizable stablecoin by far is USDT, or Tether. Like the names might suggest, the price of USDT is tethered to the price of the United States Dollar. This means that the coin is as stable as USD, which, especially when compared to the crazy world of crypto, is an incredibly stable currency. For the past year, the dollar-tethered stablecoin has been the most commonly used stablecoin in top exchanges—by far.
TrueUSD Enters the Fray
But now, another potential stablecoin has arisen to challenge the dominance of Tether. TrustToken is a blockchain startup that continues to create buzz within the crypto space. The company has been working to create its own cryptocurrency ecosystem built on a unique blockchain dynamic. But their latest claim to fame has been the TrueUSD token, yet another token planning to peg itself to the United States Dollar.
The popularity of TrueUSD as it enters the market is due in no small part to the controversy surrounding Tether. Some competitors and independent researchers have accused that the company is “printing money,” and that their system for pegging their currency to the value of the United States Dollar is bound to eventually collapse.
Digifinex Adopts TrueUSD
In part because of the controversy surrounding the leading stablecoin, one of the top twenty cryptocurrency exchanges in the world announced today that they would be adopting TrueUSD in place of Tether as their official stablecoin for cryptocurrency trade pairings. The decision, according to the co-owner Kiana Shek, is partially based in their dissatisfaction with the future of Tether. Her research led her to the conclusion that she “simply doesn’t believe in Tether.”
It is worth noting that, for quite some time, exchanges looking to integrate the important stablecoin had no choice but to use Tether, as it presented itself as the only viable one on the market. But a host of new coins are set to be released this year, and companies no longer have to choose to either forgo the stablecoin craze or submit to the rule of a problematic Tether.