Crypto Exchange Cobinhood Announced Support for Four New Stablecoins
Cryptocurrency exchange Cobinhood recently announced that it had added four new stablecoins to its platform. These coins include Gemini Dollar (GUSD), Paxos Standard Token (PAX), TrueUSD (TUSD) and MakerDao (DAI).
The next-generation crypto exchange platform which provides zero-trading-fee based solutions to its users has added these tokens to reduce volatility in the markets. The addition of these fiat pegged coins will improve market stability.
Why Don’t Standard Cryptocurrencies Stabilize the Markets?
In a recent press release, Cobinhood noted that standard cryptocurrencies could be highly volatile, sometimes moving both ways by as much as 20 to 30 percent in just a few hours. This high volatility is curbed using stablecoins that are pegged to stable fiat currencies like the US Dollar. Some stablecoins are also connected to commodities like gold and oil.
Cobinhood, founded in 2017, is aiming to help the crypto markets mature. Co-founder of the exchange, Wei-Ning Huang talked about the pain points of the market, saying:
“The biggest flaw in the market right now is uncontrolled fluctuations in the value of many customary cryptocurrencies. We are increasing the presence of stablecoins on the COBINHOOD exchange, so the community understands that their voices have been heard and stability is being made possible. Our mission is to make the space more approachable for anyone who wants to participate.”
The New Tokens Added to Cobinhood
All new stablecoins added to Cobinhood are pegged to the US Dollar. The first amongst them is Gemini Dollar (GUSD), the coin launched recently by regulated cryptocurrency exchange Gemini is an ERC20 standard token and pegged 1:1 to the US Dollar. This means that the value of each Gemini Dollar will always be equal to $1, regardless of external factors. The coin is backed by the New York State Department of Financial Services (NYDFS) regulations.
Paxos Standard Token (PAX) is another regulated token that is backed by NYDFS regulations as the Paxos Trust Company, the issuer of these coins is based in New York. It is also an ERC20 token with 1:1 pegging to the USD. TrueUSD is another ERC20 token that is 100 percent collateralized with the USD. The dollar reserves are held with professional trust firms and banks.
MakerDao (DAI) on the other hand, is a stark opposite of GUSD and PAX. Though it is an ERC20 token with USD connection, it is not backed by any centralized authority. The company behind the project, Maker, uses a smart contract, incentivized external factors and CDPs to stabilize the value of the coin.
All pairs will trade against USDT and BTC on the platform. Apart from DAI, which can be traded against ETH instead of against BTC.
Crypto Exchange Cobinhood Announced Support for Four New Stablecoins was originally found on [blokt] – Blockchain, Bitcoin & copy trading cryptocurrency.