9 Oct, 2019

China’s Crypto Billionaire Working On New Stablecoin

When it comes to cryptocurrencies, 2018 has been the year of two things only: bear market and stablecoins. Those who have lost a lot of money in this year will remember the former, and those who’re HODLing or developing new stablecoins will remember the latter. A number of stablecoins have been introduced within last few months, and many of them are now listed on multiple exchanges. Now it turns out that a Chinese crypto billionaire is planning a new stablecoin.

That’s right. Mr. Li Xialoi is a Chinese citizen who made his fortunes in crypto, and he is planning to develop a new stabelcoin whose value will be pegged to that of “global, mainstream currencies”. Which currencies will they be is not known yet. The stablecoin project will count Hong Kong based blockchain fund Grandshores Technology as its lead investor, and according to the official announcement Xialoi is going to be involved personally with the development of this coin.

Interestingly, previous reports from the fund had suggested that there will be 3 different stablecoins created by them with their values tied to Japanese Yen, Australian Dollar and Hong Kong Dollar. Xialoi had also announced months before that he will no longer invest in blockchain related projects due to lack of regulation. However, he’s still in the driving seat of this new stablecoin project.

Tether’s loss becomes stablecoins’ gain

The ongoing interest in stablecoins was fueled largely by the fall of Tether. A few months back Tether lost its USD-peg and fell as much as 10% of its value within a few days. This led to a lot of exchanges adding other stablecoins to their platforms to avoid living with a single point of failure. There’re already at least 5 different stablecoins pegged to the value of US Dollar currently in circulation: Tether (USDT), Paxos (PAX), Circle Dollar (USDC), Gemini Dollar (GUSD) and TrueUSD (TUSD).

Now if Xialoi’s new stablecoin is pegged to the value of any other fiat currency, it will indeed be a welcome addition to the world of stablecoins.