"Carbon is a price-stable cryptocurrency that is creating a more efficient and inclusive global economy."The coin will be based on the Ethereum network and is said to be backed one-for-one by the US dollar. Its arrival comes a week after the release of two competitor stablecoins, the Gemini dollar and Paxos Standard. What's all the fuss about stablecoins?
StablecoinsStablecoins have become a more popular crypto release of recent months. Designed to bring stability to such a volatile market, the idea behind them is needed. But do they really deliver? A stablecoin is a cryptocurrency that is backed by a tangible asset. So in CarbonUSD's case, that tangible asset is the dollar. For every one CarbonUSD coin, you get one US dollar. The positive of this model is that no matter how the market fairs, your stablecoin will always hold the same value as the asset it is backed by. Therefore traders can buy in and buy out easily knowing the value of the coin will not change. Anyone familiar with cryptocurrency knows that this is a big issue with digital coins, whose value is usually backed by nothing but market hearsay and speculation. The primary stablecoin is the Tether coin. But unfortunately, doubts surround the validity of the one-for-one claims about the worth of this coin.
CarbonUSDSo trust in this sector can be hard to establish but with so many new stablecoins appearing, the crypto project Carbon is unfazed, reiterating that "CarbonUSD will undergo frequent third-party attestation to verify that each token is one-to-one [dollar to token] backed. We really want to create a token that's transparent, compliant." The new "price-stable" coin was released today and is available for institutional accounts, hedge funds, traders, and exchanges. In the meantime, the company is still actively looking to get CarbonUSD on more exchange listings. >> New Security Tokens Trading Platform: Binance and Malta Stock Exchange Sign MOU The team is predicting that CarbonUSD will reach a $1 billion market cap. If so, Carbon will transition to a "hybrid algorithmic model." Miles Albert, the co-founder of Carbon, stated:
"We've already developed our algorithmic scale model, we've already done simulations as well, to test the resilience of our model. From an algorithmic standpoint, we plan to whitelist our 'metatoken' structure after CarbonUSD has reached sufficient scale and liquidity."Would you buy a stablecoin? Is CarbonUSD going to be a more reliable coin than say, Tether, do you think? Featured Image: carbon.money