Dec 5, 2018 07:22 UTC
Dec 5, 2018 at 07:22 UTC
Chinese Crypto Billionaire Li Xiaolai Developing New Stable Coin
The year 2018 has not been an empathetic or triumphant one for cryptocurrencies in any sense, especially after the 2017 all-time high. The magic figure of $20,000 touched by Bitcoin got it all the attention to propel to newer heights. However, the continuous bearish trend since November has led to the worst fall since 2011.
One coin or rather one kind of coin, stable coin, seems to have gotten the same amount of attention as Bitcoin last year. Tether (USDT), one of the prominent player in the stable coin has surpassed Litecoin in overall market capitalization. A total of $1.8 Billion worth of Tether is currently in circulation, making it the seventh largest cryptocurrency.
Also Read: Pros and Cons of the Tether
Stable coin as the name suggests holds a stable value against the volatile market. In the case of Tether, the fixed value is set to be always equal to 1 USD. Stable coin works on the two coin principle, where one coin holds a stable value against the volatile market, whereas the other coin bears the brunt of market volatility. Many crypto experts are of the belief that stable coins are the key to the future of cryptocurrencies.
Li Xiaolai the Chinese crypto billionaire investing in new Stable coin
Li Xiaolai, a Chinese crypto billionaire, has recently announced his plans to develop a new stable coin which would find its use on the Honk-Kong based blockchain fund Grande Shores Technology. The Chinese billionaire, however, is not just putting in the funds, but also on the development team and keenly following the project. Apart from the stable coin development, Li Xiaolai is also experimenting with DAG based database and many other blockchain based products.
The news, however, did not put clarity over the announcement date or whether the stable coin in the making would hold its value against a Fiat currency. As per an earlier report by Grande Shores technology talked about three stable coins with one holding value equal to Japanese yen, another with hong kong dollar and a third one tied to the Australian dollar.
The future of the project is in the hands of li Xiaolai, and it’s a good thing that an investor is getting on the ground to make sure he gets what he is paying for. However, the new stable coins would be an independent entity or a part of the existing one, only time would tell. The decision was surprising for quite a few as recently Li has announced his plans for avoiding any further investment in the blockchain technology unless strict regulations are churned out against malpractices, hacking and theft.
The stable coin is an interesting module to look at and try to implement on the cryptocurrencies. The idea has been echoed by many after continuous bleeding of the market, which lost more than 30% in capitalization this year. Last year’s boom even saw many to predict and quote ridiculous amounts for the cryptocurrency especially Bitcoin, however, things are not looking upwards at the moment, but hopefully, the markets would be stabilized in the first quarter of 2019.