Bitcoin Global News (BGN)
November 16, 2018 -- ADVFN Crypto NewsWire -- On Thursday, Binance announced that they would be following Coinbase’s lead and throwing their support behind Circle’s USD Coin, which is one of Tether’s latest rivals in the Stablecoin niche. The surprising thing is, both of Crypto’s top two exchanges have done this even though the USD Coin does not seem to be able to hold its peg to the dollar.
Around the time of Cointelegraph’s article on the subject, it was sitting at $1.02, with Tether at 98 cents, thus both were about equidistant from being even with the US dollar. With this in mind, considering the reason behind supporting Circle’s Stablecoin is a good place to start to attempt to understand this particular situation. On one hand, Binance may have added the USD coin just because Coinbase did. Leaders need to keep pace with leaders. On the other hand, they may have done so to keep what may be a more reliable Stablecoin on hand, before dropping another. In other words, does this mean that Binance will drop its current support of Tether as the project continued to be criticized?
At this moment, such an event is unlikely. Not only does Bitfinex have a wide-reaching hand, which some think extends to market manipulation, while they are around, it looks like support for Tether will be continuously encouraged.
Expect this confusion in which almost all Stablecoin projects appear to be the same on paper to continue, at least until something occurs to differentiate one from the pack. One way of this playing out might be for a single Stablecoin to be pegged to a well-known company’s goods. Therefore, people would see it becoming more on-par with fiat currencies than the others.
Until then, it is logical to hypothesize that all Stablecoins are precariously pegged, with no major partnerships in place.
By: BGN Editorial Staff