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  • Binance will come with their own stable coin

    Related to: https://blogs.airdropalert.com/what-is-stablecoin/
    Published On : 2019-06-10 09:47:46

     

    Binance, the largest cryptocurrency exchange of Europe, will offer its own stable coin in the next two months.

    A stable coin pegs their value to a commodity like the dollar, euro or gold.

    Not the same as Binance coin

    While the BNB coin is used for trading fees on the exchange, the stable coin will not have these characteristics.  

    Why stable coins?

    Traders use these coins because of the low volatility and value retention. Stable coins make it easy to park funds during wild price fluctuations. So far, Tether is by far the most popular and best-known stable coin. 

    Binance vs Tether

    "A stablecoin issued by Binance would certainly threaten Tether's value proposition," said Kyle Samani, of crypto hedge fund Multicoin Capital Management.

    Example to tether

    "Binance could also work with an auditor to provide strong guarantees that the tokens are fully supported and easily exchangeable," says Samani. "Given the recent events with Tether, those guarantees would be a reason to use Binance's stablecoin."

    Again Ardoino from Tether: "As the cryptomarket becomes more mature, competition is welcome to accelerate the transition from stablecoins to a wider market."
     

    Binance will come with their own stable coin banner

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