Starting today, there will be new stablecoins on OKEx!
The third biggest crypto exchange by market cap announced that it is adding four US dollar-backed stablecoins to its platform.
Four New Stablecoins on OKEx
Let’s catch up. Stablecoins are cryptocurrencies that are backed on a one-for-one basis with a fiat currency. For example: if a stablecoin is backed by the US dollar, then every one stablecoin can be traded equally for one US dollar. So, as their namesake suggests, stablecoins provide just that—stability. Stablecoins are ideal for investors who worry about price volatility in the marketplace. They can be traded against other cryptocurrencies and, in theory, should bring a level of price regularity to this market.
So OKEx will roll out the new stablecoins today and tomorrow. But what coins are they?
Four New OKEx Stablecoins
The new stablecoins on OKEx are as follows: TrustToken’s TrueUSD (TUSD), the Gemini Dollar (GUSD), Circle’s USDCoin and Paxos Standard Token (PAX).
But stablecoins have faced controversy in recent months, so OKEx’s listing might come as a surprise. More specifically, the controversy has surrounded the pioneering stablecoin Tether (USDT).
>> Bitcoin Price: BTC Skyrockets Nearly 10% and Pulls Rest of the Crypto Market Back into the Green
Tether is the 8th biggest coin according to coinmarketcap.com. It is used primarily by traders and exchanges to move funds quickly without the need to convert back into the US dollar.
However, questions have been looming over the legitimacy of Tether for some months now. Confidence has waned because developer Tether LLC and its sister firm, crypto exchange Bitfinex, have not been transparent regarding the actual amount of USD being held to back the stablecoin.
In a backlash against the coin, some exchanges have dropped Tether, and now, these new stablecoins on OKEx may see other exchanges follow suit.
And on the news, Tether happens to be the only top ten coin in the red today. At the time of writing, it is down -2.20%.
Bitcoin, on the other hand, is surging—up 5.09%.
Featured Image Depositphotos© gustavofrazao