Tag: Stablecoin

Founder of BitMEX Is Proposing a Bitcoin-based Stablecoin

The proposed NUSD stablecoin won’t depend on any USD reserves. Instead, it will solely depend on derivatives exchanges that list liquid inverse perpetual swaps, Hayes said. Although the US regulators are going after stablecoin issuers, the asset class continues to attract market players from across the crypto landscape. Arthur Hayes, co-founder and former CEO of BitMEX cryptocurrency exchange, recently proposed a new Bitcoin-based stablecoin. This sounds a bit bizarre considering the volatility of Bitcoin. However, Hayes states that the value of the stablecoin shall always be pegged to $1 worth…

BitMEX co-founder Arthur Hayes proposes Bitcoin-based stablecoin

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Amid the United States regulators increasingly scrutinizing stablecoins, the community continues to pitch new ideas of stablecoins independent from the U.S. dollar. Arthur Hayes, co-founder and former CEO of BitMEX cryptocurrency exchange, has proposed creating a new stablecoin with a value pegged to the sum of $1 worth of Bitcoin (BTC) and one inverse perpetual swap of BTC against USD. He outlined the idea of the potential Satoshi Nakamoto Dollar (NUSD), or NakaDollar, in a blog post titled “Dust on Crust” on March 8. Unlike major reserve-backed USD stablecoins like…

Frax’s shift to a fully backed stablecoin signals the end of DeFi’s algorithmic experiment

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The Frax community recently approved a proposal to make its FEI stablecoin fully backed by USD equivalents, rather than maintaining a partially backed and semi algorithmic stablecoin. With Frax’s decision, the days of experimentation with algorithmic stablecoins could finally be behind us. The decentralized stablecoin space has only proved effective with ETH, USDC and BTC backed stablecoins. The failure of algorithmic stablecoins (like UST) and depegging of overleveraged stablecoins (like MIM) has become one of the primary reasons for loss of confidence in decentralized stablecoins. The decentralized stablecoin space is…

Babel Finance Mulls Crypto-Backed Stablecoin to Repay $766M: Report

Babel is on the verge of filing a moratorium extension that would prevent creditors from making claims for at least six months, the report said. The filing alleges that co-founder Wang Li racked up $524 million in proprietary trading losses, with another $224 million being lost after lenders liquidated collateral that underpinned loans issued to Babel. Source

Here’s how Binance is mitigating its stablecoin needs after BUSD ban

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Binance has turned to a new set of stablecoins in the wake of the United States Securities and Exchange Commission’s (SEC) regulatory action against its native stablecoin, Binance USD (BUSD). The SEC had sent a Wells notice, alleging BUSD violates U.S. securities law. Following the SEC’s notice, the New York Department of Financial Services (NYDFS) asked BUSD issuer Paxos Trust to stop minting new BUSD altogether. The minting ban on BUSD has forced Binance to seek alternative methods to meet its stablecoin needs. According to on-chain data, the largest cryptocurrency…

Stablecoin Issuer Tether Used Bank Accounts Opened With Falsified Documents in Past: WSJ

According to the Journal’s report, Tether Holdings co-owner Stephen Moore pushed back against the use of fake sales invoices, saying “I would not want to argue any of the above in a potential fraud/money laundering case” in an email seen by the Journal, referring to an intermediary which traded USDT in China. Original Source AccountsBankDocumentsFalsifiedIssuerOpenedStablecoinTetherWSJ CryptoX Portal

Paxos-Issued Binance USD Stablecoin Market Cap Falls Below $10B After Coinbase Delisting

The daily trading volume for BUSD on Coinbase was only about $9 million in the last two months, while the market depth within 2% of the market price was just $600,000, according to data from Kaiko, making the stablecoin’s price vulnerable to wobbles. Market depth represents the open buy and sell orders for an asset within a certain price range; the deeper the market, the more stable the price is. Source

Ebb and Flow of Stablecoin Economy Continues With BUSD’s Market Cap Dropping Below $10 Billion Range – Altcoins Bitcoin News

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The realm of stablecoins is an ever-evolving landscape and the number of coins in circulation for the stablecoin BUSD has fallen below the 10 billion mark to approximately 9.68 billion on March 3, 2023. Over the last 30 days, BUSD’s token supply has dropped 40% lower. In contrast, the number of tethers in circulation has increased by 4.7% to 71.11 billion in the last month. BUSD Slips Below $10 Billion, Tether Supply Rises by 4.7% to Over $71 Billion In the stablecoin economy, currency supply fluctuations are key drivers of…

Factors driving demand for a euro-backed stablecoin

Stablecoins are a type of cryptocurrency offering investors price stability. The most popular stablecoins are those backed by the United States dollar — the world’s leading reserve currency. Others are less popular and not widely used, so many may not have heard of alternatives if they haven’t searched for them. According to data from the International Monetary Fund, the euro is the world’s second most widely held reserve currency, behind the U.S. dollar and ahead of the Chinese yuan. The euro is the official currency of the eurozone, comprising 20…