If you look at the popular crypto exchanges, they have their own stablecoins. For example, Binance has its Binance USD (BUSD) issued by Paxos, and Coinbase has USD Coin (USDC) which launched in collaboration with Circle.
FTX is one of the most popular cryptocurrency exchanges, so will there be any FTX stablecoin in the future?
In an interview with The Big Whale, FTX CEO Sam Bankman-Fried mentioned that they are considering developing FTX's own stablecoin. They may find the partner they are looking for and we might see a new stablecoin.
No doubt, FTX has a huge influence on the crypto industry. Not only that, FTX CEO Sam Bankman-Fried who has been called the next Warren Buffett has many friends in Wall Street and Washington DC.
Stablecoins are useful to hold their value pegged to the dollar. People hold stablecoins and can do many things with them. In trading, most people use stablecoins to execute the trade in different cryptocurrencies.
In a bear market like this, you can use stablecoins to do DCA and accumulate crypto over a period of time. However, stablecoins are not risk-free. In case, it loses its peg, it can collapse faster than you think. We saw what happened with UST.
The government and central authority will go hard on stablecoins. Since most central banks plan to launch their Central Bank Digital Currency (CBDC), they will not feel good having any competition.
According to Sam Bankman-Fried, FTX will delist crypto assets that are defined as securities. SEC Chairman Gary Gensler thinks some stablecoins are securities. So will FTX delist USDC if that's declared securities? Or, most importantly, if they launch their stablecoins and that is defined as securities, will they delist that from their exchange at some point?
In Hive, we have HBD. You will get $1 worth of HIVE and it's decentralized. HBD price is pretty stable, sometimes going up and down, but it returns back to its initial position.
You can follow your own strategy when you hold stablecoins. You may hold more than one stablecoin that you are comfortable with. What HBD offers, you may not get that anywhere. You get a 20% APR directly in your HIVE wallet and it is compounded monthly. All you have to do is to keep your HBD in savings.
Things change pretty quickly in crypto. You need to stay up to date and make decisions to adapt to the changing situation. So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.
Image Sources: 1, and 2.
Reference: 1.
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Interesting topic, thanks for sharing :)
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