Where are the market opportunities for the new generation of stablecoin GUSD?

On September 10, 2018 , the New York Department of Financial Services (NYDFS) approved the Gemini Dollar (GUSD), a stablecoin based on Ethereum. The stablecoin was launched by the US cryptocurrency trading platform Gemini and is pegged to the US dollar at a 1:1 ratio. Users can use US dollars to purchase GUSD, and can also convert GUSD into US dollars in reverse operations.

According to data from the well-known digital currency market website CoinmarketCap, as of April 2019, there are more than 2,000 digital currencies and more than 10,000 exchanges on the market. If some small currencies and small exchanges that have not yet been included are included, the data will be even larger.

At present, due to the different attitudes of various countries and regions towards digital currencies, many cryptocurrency traders cannot use legal tender to trade digital currencies. Before the widespread existence of stablecoins, exchanges without legal tender support can only use mainstream digital currencies such as Bitcoin and Ethereum as trading currencies and currency price measurement tools. Since these mainstream currencies themselves are experiencing large fluctuations, it is impossible to clearly understand the value trend of other currencies. Moreover, in the initial stage of the cryptocurrency circle, no one has the concept of "currency standard". Mainstream currencies are still not as reliable as legal tender when used as trading media.

Based on the needs of cryptocurrency holders and exchanges, a product that combines the characteristics of both legal tender and digital currency, stablecoin, was born. People can first deliver their legal tender to relevant institutions, exchange it for stablecoin at a fixed ratio, and then use stablecoin to freely trade other digital currencies. This not only makes transactions more convenient and smooth, but also reduces the learning cost for new users. The well-known USDT is the pioneer of stablecoin.

For coin holders, the initial stablecoin was created for convenience. After the popularization of stablecoins, their security and stability have become the most important point that cannot be ignored. In recent years, USDT has become the mainstream of the stablecoin market, but the lack of transparency in assets has led to more and more latecomers catching up. On October 15, 2018, the price of USDT fell sharply, causing many users to "cut their short positions". The 100 billion dollar coin market urgently needs a truly stable, transparent and reliable stablecoin to play a bridging role.

Since 2018 , the stablecoin market has ushered in a great boom, and various new stablecoins have appeared one after another. GUSD is the most dazzling one among them. In terms of convenience, it is almost a replica of USDT, also based on the Ethereum network, and also exchanged 1:1 with the US dollar, but the biggest difference lies in supervision. The official certification of NYDFS is equivalent to government endorsement, which can ensure the safety of GUSD. Coin holders can safely store idle investment funds in the form of GUSD in the exchange and trade at any time without worrying about GUSD problems causing damage to their assets.

The types of digital currencies are growing continuously, and more and more people are learning about the cryptocurrency circle and joining the ranks of investment. The entire market is constantly rising, and at the same time, the market demand for stablecoins is also rising. At the same time, for people in some countries where the legal currency is depreciating wildly, using stablecoins can ensure that their assets will not shrink significantly. Of course, stablecoins are also a magic weapon in cross-border transfers. Although USDT has sufficient first-mover advantages, can it still maintain its top position in trading volume in the face of the emergence of highly competitive new stablecoins? As a challenger, GUSD has enough qualifications and strength to compete with USDT.

At present, the circulating market value of GUSD is only more than 60 million US dollars, which is still a long way to go compared with USDT, which has a huge circulating market value of billions of US dollars. For a new regulated and compliant stablecoin like GUSD, if it wants to become mainstream, it must be known and recognized by more people, so as to change everyone's usage habits and gradually transition from USDT to GUSD.

In order to embrace compliant stablecoins and welcome the arrival of the big trend, the old Hong Kong exchange, Cowin, has launched GUSD in the over-the-counter trading area, and users can trade on computers and mobile devices. As a senior exchange in the currency circle, Cowin has been operating stably for many years and has sufficient operating experience. The launch of GUSD has a strong promotion effect on the stablecoin itself. During the launch period of GUSD, users can enjoy a 50% discount on advertising rates on Cowin. Coin holders who need GUSD can buy GUSD conveniently and quickly on Cowin in the future.

This article is for commercial promotion only and does not represent the position of Wabi.com. Cryptocurrency is a high-risk industry. Please invest with caution. We are not responsible for any losses!