OKEx, the leading global bitcoin exchange announced the listing of four new stablecoins on October 15 to fulfill the market demand for more options of cryptocurrencies collateralized to the fiat dollar. These new inductions were announced to be TrueUSD (TUSD), USD//Coin (USDC), Paxos Standard (PAX) and Gemini Dollar.
These stablecoins were added with each carrying its own set of specific features that cater to the market demand of investing in a digital asset which maintains its stability with the fiats such as USD, EUR, and Japanese Yen. These stablecoins are often used as a hedge against the volatility of other cryptocurrencies. OKEx issued detail and specific features about each stablecoin that was listed.
TUSD, one of the most popular stablecoins is held in the professional trust firms’ banks, keeping it fully intact with the USD. The USDC offers detailed financial and operational transparency and is operated within the regulated framework of U.S. money laws. PAX offers a liquid, digital alternative to cash and has recently announced of being the fastest cryptocurrency to achieve adoption among 20 top global exchanges. GUSD combines its creditworthiness in blockchain technology with the oversight of U.S. regulator. It can also be transferred to the Ethereum network as an ERC-20 token.
The project teams behind these listed stablecoins hold actual U.S. dollars in their reserve and they guarantee that their tokens are redeemable 1:1 for the dollar. This situation was put into scrutiny on the same day as OKEx’s announcement, when Tether, the most famous stablecoin, imploded and faced upto a 4% drop in its price going down from a dollar to 93 cents.
This hit the market everywhere and while Tether suffered, major cryptos like BTC, ETH and XRP rose upto about 7% on the day. The sudden Tether implosion meant question marks to be raised on other stablecoins’ stability status. Crypto expert David Gokhshtein shared that other stablecoins will not face this kind of a situation in the future. He also claimed that Tether is not trusted by half the industry and needs to be left behind. He said:
It [Tether] is just not trusted by half the people in the industry. That’s the problem. I don’t believe other stablecoins will face this in the future.