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RE: Is Basis Stablecoin the next Crypto Failure?
great to see your content on this. I haven't followed other stablecoins, apart from USDT and the controversy around it. I don't see any point in them at all. I wrote something on it a few days ago as well..
what really confused me is the backing it is receiving from all the great VCs and Stanley Druckenmiller.
here is my piece on it. if you can find time to read it, then please let me know what you think -
Hi @karamyog! I am happy to see you brought up the issue. Yes, it has less meaning for investors as stablecoins do not increase their prices. I think fundamental concept is to allow the masses to adopt the coin, but it has more personal agenda. Creating stablecoins is almost a situation where you have created a mirror of the currency that represented that nation. By tapping into the nation's currency, you gain funding, support, wealth etc. It is a win-win situation as many sees it (both the creators and the adopters). Adopters have an ease for digital currency exchange and stablecoins are doing their job. Hence stablecoins may one day replace the role of banks in money regulation, that is cryptocurrency. Stablecoins are nothing but money exchangers and while they can be many of them, holding their coins bear little additional value.
Ok, now i see the incentive for issuers and those VCs. Thanks, that was very helpful.