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Stablecoins Rivalry: Which New Coin will Replace Tether (USDT)?

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After the recent Tether (USDT) incident, a lot of investors started paying more attention to stablecoins. However, they were quite popular long before USDT started losing its value, and a lot of new ones were in development for a while now. These days, the stablecoin invasion is in its full swing, with around 57 coins being around — either already in circulation, or about to enter.

While most crypto investors already know this, we should explain that stablecoins are cryptocurrencies that are backed by another asset. This other asset is often a fiat currency, such as the USD. This is done so that their price would always be the same. with each coin being backed by the same amount, which is usually $1. That way, the coin is able to escape volatility, and ensure stability, hence the name.

While there were numerous stablecoins in circulation already, the one that made them known and popular was Tether (USDT). This is a coin issued by the Tether company, which claims that it can back each coin in circulation with 1 USD. However, since the company failed to provide proof that it actually has enough money to do so, the coin lost its credibility, and investors started dumping it.

This has left an empty spot in the space, and numerous stablecoins rushed in to fill the gap left by Tether. Today, we will review some of these coins.

1. Tiberius Coin (TCX)

Tiberius Coin (TCX) is a stablecoin issued by a Switzerland-based Tiberius Group AG. This is a large and known trader of commodities and asset manager, which issued the coin almost two months ago, on October 1st. The coin is rather unique, even for a stablecoin, since it is not backed by a single asset. Instead, the company is using 7 precious metals for backing it up, This includes Gold, tin, aluminum, nickel, platinum, copper, and cobalt.

The company’s CEO, Giuseppe Rapallo, stated that the reason for this is diversification, which is supposed to make coin more attractive, as well as more stable. At the same time, purchasing the coin will be just like investing in said metals, as well as in technologies that depend on them, such as electric cars, robotics, solar power, the AI, and more.

2. USD Coin (USDC)

USD Coin, or USDC, was launched on September 26th, 2018, as a joint effort of the CENTRE open-source consortium and Circle Internet Financial Ltd. As the name suggests, this is a dollar-backed coin, just like Tether. It was made on Ethereum’s network, and it can be traded on numerous exchanges already.

The two companies understand what Tether did wrong, and they aim not to repeat the same mistakes. Considering that stablecoins are something of a bridge between crypto and other assets, they have to be legitimate and trustworthy, with open standards and transparency that will provide investors with security. This is why USDC keeps no secrets regarding their funds, and can confirm that each coin is fully backed by $1.

3. Gemini Dollar (GUSD)

Launched on September 10 this year, Gemini Dollar (GUSD) comes as a new project of the Gemini Trust Company. This is a well-known cryptocurrency exchange and custodian which is run by the Winklevoss twins. The twins stated that they are excited to bring this project to life, especially since it aims to combine stability and trust associated with the USD with technology and power of blockchain.

This is another stablecoin that has learned what not to do by watching Tether, and each coin is backed by $1, with the money being held at State Street Bank and Trust Company. In addition, every month, the deposit balance is examined and confirmed, so that the Tether incident can never happen with GUSD. At the time of writing, this stablecoin is already listed on numerous exchanges, including HitBTC, Bibox, DigiFinex, BTEX, and more.

4. LBXPeg

LBXPeg is a stablecoin issued by the London Block Exchange on September 29. This is the first stablecoin to ever be backed by the GBP, with each coin being backed by one pound sterling. The LBX issued a press release recently, stating that they will allow users to transfer their coins quickly and easily anywhere in the world via the decentralized network.

Furthermore, money transfers will be traceable, trustless, and safe, which is why numerous other use cases are expected to arrive as well. Users will be able to pay for goods and services, create smart contracts, and more. In addition, the company is using ETH blockchain for creating, distributing, and managing the coin.

Finally, the coin is an ERC-621 token, which means that it will have enough flexibility in its total supply to match the amount of GBP held in their bank account. The company also announced plans to issue their stablecoin on other blockchains at some point and to tie the value of the coin to that of other currencies, such as the US dollar and Euro.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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Altcoins

ICTE May Bring About Sweeping Changes for Cryptocurrency Exchanges

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Cryptocurrency has taken the world by storm during the last few years. An entirely new financial market was created almost overnight which has captured the imagination of all its participants. Cryptocurrency is even starting to attract institutional money from investment banks, hedge funds, and other proprietary trading firms. Despite the rapid growth, traders remain extremely frustrated by having to deal with the fragmented nature of centralized crypto exchanges.

A Change is Needed

When cryptocurrency first began, there weren’t many participants and the trading volume was relatively insignificant. But, over time, that has radically changed. Some tokens now have a capitalization in the billions and are being traded 24-7 by institutions all over the world. Despite the volume, significant problems exist with the current way that exchanges work. Some of those problems include the following:

  • Constant fear of hackers
  • Exchange manipulation
  • Fragmented liquidity
  • Risk of identity theft

One of the biggest issues regarding centralized exchanges is the risk of being hacked. These hack stories seem to always be circulating around the internet. While experienced traders may have the tools to avoid becoming a victim, potential new traders have zero interest in dealing with this. And it’s not just the small exchanges that are at risk. Even large exchanges, such as Mt. Gox and Binance, are subject to being hacked.

Another huge risk is having to deal with…

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Altcoins

SonicX and Dash Could Challenge Facebook’s Libra for Global Payments Market Share

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When Satoshi Nakamoto unveiled Bitcoin to the world, the dream was always for Bitcoin to serve as a new universal currency.  It would be free from the bureaucracy of governments.  And free from the tyranny of the old-world financial cartels.  Although the dream hasn’t yet materialized, it comes closer and closer with each passing day.

One of the biggest roadblocks for Bitcoin has been scalability.  At a speed of approximately 7 transactions per second, Bitcoin lags behind other cryptocurrencies like Ripple and global payment processors like Visa.  Many expect the lightning network to have a positive impact on Bitcoin’s TPS but until that comes to fruition, mass adoption will likely need another significant development.

Libra Currency Announcement

One development that could help pave the way toward mass adoption is the launch of the Libra currency.  Libra is expected to go live during the first half of 2020 according to Facebook’s June announcement.  According to Facebook, Libra will make sending money online cheaper and faster.  It will also have a hand in improving access to financial services, especially for the unbanked.  Given Facebook’s global reach, including many third world countries, providing financial access to the unbanked could provide a huge spark to global economies.  Additionally, it could provide the growth spark that cryptocurrency needs.

Facebook’s most popular messenger, WhatsApp, has approximately 1.5 billion monthly users.  This application is…

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