Stablecoins have become influential players in the cryptocurrency market and are often scrutinized by financial regulators. According to Howard Lutnick, CEO of Conte Consulting and custodian of the stablecoin Tether, these digital assets are good for the U.S. dollar. At a Chainalysis conference in New York, Lutnick stressed the importance of the dollar's dominance and discussed the advantages of stablecoins such as Tether and Circle's USD Coin, which have strong backing and enhance the cryptocurrency ecosystem.
According to CoinMarketCap, the third-ranked Tether has a market cap of $107 billion, and the seventh-ranked Circle’s USD Coin has a market cap of $32.25 billion. Tether, in particular, serves as a digital equivalent of the U.S. dollar for cryptocurrency traders, facilitating a significant portion of Bitcoin’s daily trading volume and up to 701 Tether of other major cryptocurrencies.
We have previously discussed Tether and the reasons for its market dominance in the industry, as well as its price stability mechanism. The way Tether maintains price stability is that every time Tether issues a new USDT token, the company sets aside an equal amount of US dollars in its reserves. This ensures that the tokens are fully backed by cash and its equivalent. It is widely believed that this link is what makes this stablecoin stable. Other stablecoins often take a similar approach to maintaining price stability, usually through the backing of reserve assets.
The impact and controversy of stablecoins
However, Lutnick expressed reservations about central bank digital currencies (CBDCs), suggesting that countries like China might view a digital dollar as a surveillance mechanism.
Stablecoins are controversial because of their inherent nature; they are cryptocurrencies pegged to traditional currencies, gold, or other financial instruments. The U.S. Securities and Exchange Commission (SEC) has argued that stablecoins should be classified as securities and therefore subject to its regulatory oversight. This position has led to a wave of lawsuits against stablecoin issuers, alleging that they violated laws to protect investor interests.
The SEC’s suspicion is not without reason, especially considering past misconduct in the stablecoin space. For example, Terraform Labs’ algorithmic stablecoin TerraUSD was involved in a multi-billion dollar fraud in 2022, causing major turmoil in the cryptocurrency space and its CEO Do Kwon becoming a fugitive.
Besides the controversial aspects, stablecoins also have the potential to tokenize physical assets. Lutnick emphasized the future possibilities of blockchain technology and stablecoins in the financial sector, arguing that they could soon facilitate the tokenization of assets such as bonds. This is consistent with the statements of Blackstone Group, which has been advocating its digital asset strategy, including the launch of exchange-traded funds (ETFs) and tokenized financial assets.
In summary, despite the scrutiny and regulatory challenges facing stablecoins, their role in enhancing the U.S. financial system and pioneering the tokenization of assets continues to gain recognition among industry leaders and investors.
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Dogeverse has grown from a simple Dogecoin token to a potential powerhouse in the cryptocurrency space thanks to its multi-chain capabilities. This approach not only broadens its appeal across different user preferences, but also serves as a unifier in the often-fragmented blockchain ecosystem. Whether users are attracted by the low transaction costs on Solana, interested in Ethereum's reputation, or curious about exploring the emerging Base chain, Dogeverse is ready to welcome them with an open attitude.
One of the most compelling aspects of Dogeverse is its ability to build communities between users of different blockchains. By leveraging cross-chain bridges such as Wormhole and PortalBridge, it aims to ease the competition that may arise between different blockchain communities. This, coupled with the appealing lore surrounding Cosmo, has the potential to propel Dogeverse to heights that surpass the achievements of predecessors such as Dogecoin.
The core of Dogeverse’s appeal lies in its rich lore and Cosmo’s legendary adventures, inviting every blockchain user to contribute their own story to its mythology. This not only enriches the project’s backstory, but also enhances its charm and appeal, potentially paving the way for Dogeverse to become a mythical presence in the cryptocurrency world.
Dogeverse's presale is divided into ten stages, with the token price increasing from $0.000029 in the initial stage to $0.000299 in the final stage. The total supply is 200 billion tokens, of which 30 billion are for presale, with the goal of raising $8.83 million for the soft cap and $170.02 million for the hard cap. Impressively, Dogeverse has already received more than $300,000 in funds on the first day of presale, showing the strong enthusiasm of the market.
For those interested in the promise of Dogeverse and its novel approach to blockchain interoperability, the presale can be obtained at thedogeverse.com. Not only does the project promise immediate gains through its diverse usability on different chains, it also aims to bridge the divide between blockchain communities, with the potential for long-term growth.
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