Stable coins in Crypto market - USDQ
Cryptocurrency introduction created a whole new market, that is worth more than 300 billion at the moment. BTC only accounts to more than two thirds of the whole market, top ten crypto currencies accounts for almost 90% of the whole market. On the same time, volatility is high for all crypto currencies, and could be in range of +/- 20% daily, which is creating instability on the market. Instability is addressed with stable coins that are pegged to fiat currencies, US dollar only, or basket of fiat currencies. But, stable coins have small part of the market, just one stable coin is in top ten – Tether (USDT) is on 4 billion market cap, and whole stable coins market cap is below 2% of total market capitalization for crypto currencies. Since stable coins should be one of important alternatives to fiat crypto gateway, to leverage volatility on the market, it is to be expected that stable coins market will grow and new projects will be announced to cover this gap between need for leverage and number of stable coins on the market.
Without stable coins, one has to change crypto to fiat each time when he wants to secure funds from market volatility. This shall be done through gateway that could be exchange or other institution and create expenses due to provision that is high. Stable coins can ensure that all this could be done without exchange to fiat, just exchanging your crypto coins into stable crypto coins, but security and trust must maintain for all those stable coins on the market. Even the largest stable coin by capitalisation, USDT, had several leakage incidents which do not improve security status of crypto currencies. It is important to improve whole view of crypto market, since there are currently only early adopters, but adoption is growing and for mass adoption it is needed to have trust, security and easy way to enter crypto market from fiat, that will not create large provision, which is up to 7% now, enormous compared to usual financial provisions.
One of projects that will certainly shake the market is Facebook Libra coin, if approved, since they recognized this gap on the market, and provision of Libra is just what crypto market needs at the moment, stable and trusted coin, on the platform with more than billion users, that can greatly increase number of crypto currencies users, that is currently measured in millions, and could reach billion in case of successful adoption of Libra. While Libra expansion is questioned by regulation in USA, where Facebook HQ is located, global crypto start-ups can find their place to reach popularity while Libra future is not cleared. Here and there, several crypto start-up projects propose stable coins, that are pegged usually to USD, and provide collateral in gold, diamonds, BTC or simply USD. One of them is the main subject of this article – USDQ, created by Q DAO ecosystem, powered by Platinum Engineering and team listed on a site is quite strong, with management team, engineering team members, as well as advisers listed, in a transparent process.
Q DAO https://usdq.platinum.fund/ stable ecosystem provide platform where users can create stable coins, in a amount that is equal to collateral that is provided on the platform, so that each and every coin is secured by collateral. Currently it is possible to create USDQ that is pegged to US dollar, and KRWQ, that is pegged to Korean Won, and CNYQ and JPYQ are planned in near future, with other stable coins creation based on need. Platform allow each user to create stable coin with condition that equal amount of BTC shall be deposited on the platform, which can be done on a dashboard https://platinum.fund/ico-platform. Deposit is held on the platform, and withdrawal is subject to repayment of equivalent amount USDQ to the platform. Stability fee is paid to the platform, for stable coin to be minted, and this amount shall be paid during withdrawal. Fee shall be paid in QDAO, which is native token on the platform.
Process to ensure stability of coin price is simple, because users can control price volatility with simple actions. If the price is decreasing on the market, users can buy coins on the exchanges, and repay loan on the platform with return that is equal to price difference between exchange price and stable price, and if the price is increasing, users can mint coins on the platform, and sell them on the exchange with interest. It is simple mechanism of supply and demand.
Platform will enable additional features, such as prediction feature based on artificial intelligence, parameters, news and influential factors to provide crypto currency price prediction.