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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

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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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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