Cardano founder thinking about launching a stablecoin on Cardano network, surpass Ethereum’s DAI
IOHK CEO Charles Hoskinson said he was thinking about launching a decentralized stablecoin – like DAI of MakerDAO – on the Cardano network. In particular, Hoskinson stated that this stablecoin would surpass DAI in terms of reliability. However, with Cardano not yet launching a private network, some argue that this idea may be a bit early.
If we do this, then it will blow everyone out of the water. I started in this space with stablecoins and we’ve been thinking about them for seven years https://t.co/t4FGxW7cLk
— Charles Hoskinson (@IOHK_Charles) February 11, 2020
Hoskinson said he has been thinking about stablecoins for the past seven years. However, developing Cardano and ADA is an entirely different direction. Although Cardano and ADA are favored by investors as an alternative to Ethereum and EOS and are also considered by many to be a long-term investment.
Is it possible for a Cardano stablecoin?
With an emphasis on academic research, Cardano has made progress with his development. The most recent is the launch of the Shelley phase, which brings decentralization to the network on testnet. It has seen more than five billion shares of ADA. The project still has plenty of ways to go, but investors are confident it can become a viable competitor to Ethereum.
Even when a Cardano variant of DAI is released, it will take a long time before it will work. Cardano now has three more stages before it is considered complete – Goguen, Basho, and Voltaire – respectively, will bring smart contracts, replication, and management solutions.
However, Cardano is not a small name in the market, and if its potential increases as expected, the launch of a stablecoin can attract masses and significantly increase the number of network users and drive up the growth.
Weiss Crypto Ratings recently sent tongues wagging with a tweet that let slip Hoskinson’s plans to launch a stablecoin.
In response, Hoskinson published his information in the stablecoin market. And say that if Cardano ever released a stablecoin, it will blow everyone out of the water. Naturally, this raises some questions. How will the ADA hodlers benefit?
Therefore, Hoskinson said Cardano’s stablecoin would help increase liquidity, also providing further assurance through easier on and off ramping. Besides, Cardano stablecoin will also create more demand for ADA.
If the coin uses Ada as part of its Central Bank mechanism, it creates demand for the underlying asset.
— Charles Hoskinson (@IOHK_Charles) February 12, 2020
However, some observers point out that the Cardano network is far from complete. For that reason, critics say Hoskinson is distracting.
The stablecoin market is very competitive
There are many stablecoins in the market. In particular, Tether (USDT), USD Coin (USDC), and DAI are the most notable. All three attract the attention of the cryptocurrency market for their reasons. In particular, Tether was noted for criticism related to Bitcoin price manipulation. The reason at DAI is because this is a decentralized cryptocurrency backed by ETH collateral (with more tokens to be supported on time).
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