Huobi Global, the international version of one of the earliest Chinese cryptocurrency exchanges, announced that it will list four new stablecoins on its platform as alternatives to the controversial Tether (USDT) token.
The new stablecoins are Paxos Standard (PAX), TrueUSD (TUSD), USDCoin (USDC), and Gemini Dollar (GUSD). Huobi said it will open up for deposits in these tokens starting on Friday, October 19.
The flow through Huobi follows days of dramatic fee swings for the popular USD-pegged cryptocurrency Tether. The stablecoin, which is meant to be sponsored 1-to-1 by bodily US dollars in reserves, seemingly lost the connection to the dollar this week, buying and selling all of the way all the way down to USD 0.86 at one point on Monday. on account thatthen, but, Tether has recovered and is presently trading at 97 cents.
The Tether promote-off caused a huge influx of money into bitcoin and different cryptocurrencies on Tether-primarily basedcrypto exchanges including Bitfinex. As of Wednesday morning, bitcoin and other cryptocurrencies are nevertheless buying and selling at a massive top rate on Bitfinex and HitBTC in comparison to its rate on fiat-primarily based exchanges like Coinbase.
Some exchanges allow their customers to exchange cryptocurrencies for US dollars, however others including Bitfinex, Bittrex, HitBTC, and Poloniex offer USDT. Because Tethers are riskier than actual US dollars, the market attaches a risk premium to them by demanding more Tethers than USD in exchange for a Bitcoin.
For example, a website untether.space tracks this discrepancy, which it represents as a “risk premium”.
Stablecoin market growing
As Cryptosyringe.com has reported on earlier, the market for so-called stablecoins is currently seeing strong growth, with a number of new tokens being introduced to the market. Among the best-known is the Ethereum-based and USD-pegged TrueUSD (TUSD), and USD//Coin (USDC), a new token created by the Goldman Sachs-backed crypto start-up Circle. Both tokens are among the new stablecoins that will now be tradable on Huobi Global.
In either case, scepticism towards stablecoins remains. For example, Sam Doctor, managing director and head of data science research at Fundstrat, told Bloomberg that he wouldn’t keep his money in stablecoins as “There’s a big disconnect between the concept and the implementation right now.” In addition, Gil Luria, director of research at D.A. Davidson & Co., stressed the risks related to the centralization of stablecoins (teams could run away with funds), while a government can decide to freeze the assets.
“Stability” of stablecoins: