5 Reasons Why You Should Create A Stablecoin For Your Business
Why should you create your own stablecoin for your business? We have 5 Reasons to prefer custom stablecoin development over crypto development have a look!
If you are reading this you are exploring why your business might be considering creating a Stablecoin. There are so many reasons why 50% of 100% companies all over the world are adopting the crypto space.
If you’re a company in this crypto business environment, you’re probably fully aware of stabelcoin. But have you ever viewed the option that exists for your company? By leveraging these potentialities, you can advance your business and marketing strategy in several meaningful ways.
The State of the Stablecoin
Stablecoin is a trending part of the crypto era that aims to be the contrast cryptocurrencies such as Bitcoins, Ethereum, etc. Stablecoin aims to achieve price stability by being pegged to a real asset like the US dollar, gold, silver, or any other fiat currency. Stablecoins offer the stability of the regular fiat currency and the privacy and security of crypto transactions. This allows central banks to more positively allow the use of cryptocurrency and regulates them.
So What Exactly is Stablecoin Pegged To?
There are 4 main types of stablecoins: backed by fiat, backed by crypto, backed by commodity and backed by algorithmic ones.
Fiat-backed Stablecoins
The simple solution is to have a fiat currency reserve to back the stablecoin. Also the most popular USD collaterals, stablecoins can have real reserves in USD, Euro, INR and other fiat currency. These reserves are regularly audited by central authorities. So nothing gets out of control.
Fiat backed stablecoins or stable tokens are crypto tokens combined with the value of a specific fiat currency. These stable tokens hold their value fixed at a 1:1 ratio.
For example, TrueUSD (TUSD) is a U.S. dollar stablecoin pegged to USD at 1:1. TrueUSD is one of the crypto stablecoins handled by TrustToken, a platform for tokenizing real-world assets. Compare to the other stablecoins, TrueUSD aims to help increased liquidity and provide cryptocurrency traders & common users with a nonvolatile asset relative to free-floating tokens such as Bitcoin (BTC).
Crypto-backed Stablecoins
Crypto-backed stablecoins are backed by crypto assets on-chain. This type of stablecoin is collateralized with other crypto assets, such as Ethereum, Tron, or another token.
For Example, Dai - MakerDAO is an outstanding project that uses this model and is the company behind the Dai stablecoin. MakerDAO uses a two-coin model: Makercoin (MKR) and Dai (DAI).
Non-Collateralized Stablecoins
The most magical category of stablecoins, non-collateralized, doesn’t depend on reserves. As a matter of choice, it uses another stability factor and acts as a central authority. Big thanks to the algorithms and smart contracts, new tokens are significantly burned or issued to protect the price from volatility. non-collateralized stablecoins are based on the part of a Seigniorage Shares system. Seigniorage is the variation between the value of money and its printing cost.
These types of stablecoins depend on the algorithm, which changes the supply volume to control their price. Utilizing immutable smart contracts, these stable coins are sold out if the price down below the pegged currency and further tokens are given to the market if its value rises above the pegged currency.
Commodity-backed Stablecoin
Commodity-backed stablecoins are pegged by other types of exchangeable assets like real estate and precious metals like gold, silver, diamond, etc. Gold is one of the most popular commodities to be backed. Commodity-backed stablecoins hold a tangible asset with some real value. These types of commodities can boost value over time, which offers an increased incentive for people to use and keep these coins.
Using commodity-backed stable coins, anyone can invest in real estate properties or precious metals across the world. Generally, the investment in such assets is only reserved for the wealthy class of investors. However, stablecoins open up investment opportunities for common individuals worldwide.
5 Great Reasons to Create a Stablecoin
* A stablecoin is like a cryptocurrency which offers low volatility against the world’s major fiat currencies, Using the advantages of decentralized technology. In short, stablecoins can be explained as a cryptocurrency with a fixed price.
* A stablecoin offers a number of use cases than that of the blockchain. Usually, individuals no need to worry about the price fluctuations of the cryptocurrency daily while buying or investing them. Stability in cryptocurrencies allows people to execute quickly and it also enables other crucial financial functions, including credit and loans.
* A reliable Stablecoins develop as a new opportunity for investors who want to make a transaction via a global currency, providing access to all.
* Moreover, a decentralized powered stablecoin could become a universal currency by allowing trustless and cross-border transactions
* The choice of stablecoins will support the capital market order and present a new option for Decentralized Finance (DeFi) on the blockchain like derivatives markets and lending.
Why Create A Stablecoin?
If you are still unsure about the benefits of creating a stabelcoin for your business contact Developcoins today for a hassle-free chat on whether a decentralized powered stablecoin is the right fit for your business.
About Developcoins
Developcoins is the fast-growing Cryptocurrency creation and Stablecoin development company that is guided in creating asset-backed tokens with high-end quality. We are a passionate team of skilled stablecoin professionals that design, develop and support innovative custom stable coin or token development solutions, guiding our clients on the business journey to realize their real vision.
We have 200+ team members including industry experts in Cryptocurrency development, Token Development, DeFi development, Custom blockchain solutions, Smart Contract Development, and ICO/STO marketing strategy.
By creating a stablecoin backed by a fiat currency, gold, crypto assets, we can help you create a secure and reliable stablecoin for your business. Contact our team of experts and discuss your requirements.
Create Your Own Stablecoin
Book a FREE Consultation with Our Experts via Whatsapp | Telegram | Skype
BEP20 Token Development Company - Create Your BEP20 Token on Binance Smart Chain