Bitrates: Anchor ANCT Token and the Newest Stablecoin Projects of 2019
Bitrates, a crypto-based website that delivers news, research, and analysis on all things cryptocurrency to better inform the general public, recently came out with an interesting article about the newest stablecoin projects. One of the projects to be on the lookout for is Anchor ANCT Token, which aims to protect investors from recession and inflation, as well as provide them with long-term stability.
Since cryptocurrencies such as Ethereum and Bitcoin are prone to sudden drops in value, the crypto world needed another type of coin that could avoid price volatility. Thus, four stablecoins gained ground: Tether, Paxos Standard, TrueUSD, and USD Coin.
But these stablecoins aren’t perfect
Unfortunately, the main issues regarding these stablecoins are huge red flags. Tether was in the spotlight recently as it was revealed it might not have sufficient reserves nor completely transparent audits. Therefore, the time has come for other projects to try to resolve the stability issue, which has been bothering investors for some time now.
Luckily, these projects include Anchor, which is showing great potential. With its token, Anchor could finally put an end to extreme volatility and provide long-term beneficial results. Its main advantage is that the token is pegged to the global GDP rather than a fiat currency.
Other projects include Alchemint’s SDUSD token, MakerDAO’s DAI token, and EOS’s stablecoin. Some of them are truly viable alternatives to the stablecoins currently available. However, there are some downsides to them. Some of them have extremely high fees, while others include fees that are far too low and could spell trouble later on, as in the case of Alchemint’s SDUSD token. Right now, their annual fee is 2%. It probably won’t stay so low in the future, as its market cap grows and the company matures.
Additionally, there has been a surge of international stablecoins. These are pegged to different fiat currencies and could lead to mass cryptocurrency adoption.
To find out more about the latest projects and what their strengths and weaknesses are, read the entire article here.
Title photo by Steve Johnson, Unsplash.