The cryptomarkets have remained turbulent for most of 2018. In the midst of volatility noise, many movers and shakers are seeking to find a silent solace to guarantee returns on investment. The relentless search for consistency led to the creation of stablecoins. The battle for supremacy in this new space has ensued and eToro has not lagged behind.
The social trading giant company announced the development of their in-house stablecoin sometime in 2019. The announcement was made by the CEO, Yoni Assia, at the Finance Magnates London Summit in his company’s presentation. He pointed out that exact timeline for the introduction of the stablecoin is not known yet.
The company has not yet offered further commentary about how far they have gone with this new development. This announcement almost summarizes the busy year for eToro in their involvement in the crypto market. Also, they joined, in recent months, with a few Premier Football Leagues creating major advertising partnership.
The aim of that partnership is to develop a functional “non-speculative” cryptocurrency that levels the playing ground by paying interest to people who ‘have less.’
Recently, the popularity of stablecoins has grown consistently aiming to adhere to rules and regulations crafted by governments and authorities to bring steadiness to the crypto market. A stablecoin is ‘pegged’ to an actual asset or an existing fiat currency. It is normally designed on a one-to-one basis.
For instance, every 1 StableCoinX is pegged on 1EUR or 1 USD. In the case of other assets, the stablecoins are joined to different units of real estate, gold, or any other tangible property on a pre-decided basis. In the latter half of 2018, stablecoin issuance has become the norm across many exchanges and eToro has dived in.
However, it is not all rosy in the new market with the first stablecoin, Tether[crypto coins=”USDT” type=”text” show=”percent”], failing to solve its lack of audit problems. Its price fluctuates considerably leading to analysts and experts doubting the stability of ‘stablecoin.’
eToro is set to launch its stablecoin to conform with the looming market regulations and requirements getting adopted by governments and authorities worldwide.