Are Stablecoins the real ‘Killer Apps’ in Crypto? – Emogi Coin
Today it was announced that Tether has launched the Yuan-pegged stablecoin CNHT. Despite all rumors of insolvency, lack of funds, and shady dealings, the top crypto stablecoin company continues to push on expanding and evolving the crypto space.
Since the market top of late 2017 and early 2018, most crypto projects are severely in the red, if they still exist at all, with few managing to reach new all-time highs or even get half-way there as Bitcoin has.
But throughout this time there was one rapidly growing sector that continues to add value to the total market cap of cryptos, and that is the stablecoin sector.
Are stablecoins the ‘killer app’ the cryptocurrency space has been looking for all this time?
Most have been assuming that the massive gains that Bitcoin and some of the altcoins have experienced in the past would draw in big investors looking to make quick money, but in reality, the mainstream investing world has kept crypto at arm’s length. What many failed to realize is that the disconnected system of exchanges and lack of access to real-world banking institutions made it near impossible for larger institutions to get involved, along with a simple way to maintain stability and hold value.
What was missing was wide access to reliable stablecoins.
While many can only speculate that it was in fact Tether (USDT) manipulation that led to the massive bull run that saw Bitcoin approach $20k, it is undeniable that USDT plays a vital role in the markets as they exist today, not for just BTC but for many altcoins that are now paired with USDT on a large number of exchanges.
The real twist this new offering brings is related to recent reports that many of the new USDT tokens minted in the past few months actually came from wealthy Chinese buyers looking to get around capital controls on purchasing cryptocurrencies. Now that they will also have access to CNHT, it will be interesting to see if the USDT market growth begins to slow down as the growth of the CNHT market rises.
Regardless of that aside, the continued introduction of new stablecoins to the cryptocurrency market is sure to be a boon for the overall market value, as more individuals and institutions will now have even greater access to entering the market.
Cryptocurrency may move faster than any other market before it, but it still requires patience and development. Stablecoins may indeed be the ‘killer app’ that helps introduce a larger segment of the population to the possibilities of blockchain technology and cryptocurrencies, but the underlying architecture still has a ways to go before it can scale to meet global needs.