Crypto company explains advantages and risks of stablecoins.
Stablecoins have garnered much attention recently. Crypto company has released a report on the growth of the stablecoin and explained whether they really work to decrease volatility. Experts have analyzed 57 stablecoins. Half of them are active, and the remaining part is in a pre-launch phase. Several enterprises are planning to launch new stablecoins by the end of 2018. Some of the cryptocurrencies offer “dividends” or have other bonuses.
The market value of all stablecoins is three billion USD, and most of them belong to the U.S. or Switzerland jurisdiction. Ethereum is the most widespread platform for stablecoin trading. About 70 percent of companies have made their code open-source.
The report also states various use for stablecoins, for example, for compensation of delayed flights when the smart contract enables the claimant to ease the claims process. However, regulation related to stablecoins also remains unclear, and experts continue to argue whether stablecoins correspond to national securities laws. In addition to that, many stablecoins represent greater threats to fiat and a source of income for tax evaders. Stablecoins may also lead to more aggressive competition in the market.