Gate.io Launches Stable Coin Conversion Symbol
An Innovative and leading function brings you with a more quality user experience
The USDT Crisis
Nowadays, stable coins occupy an increasingly important position in the blockchain industry, especially in the trading of blockchain assets.
Recently, a report questioning the transparency of USDT (which is the most widely used stable coin at the moment) has caused a trust crisis. Consequently, the USDT price fluctuated dramatically, and deviated far from its anchor price, greatly affecting the markets.
Although the USDT price recovered to its initial value, this crisis has raised a lot of questions regarding its security and transparency among traders.
Trust and Value
This has also highlighted the trust issues of stable coins, and brings the opportunities for other compliance and legal stable coins in the industry, such as PAX, USDC, GUSD, and TUSD.
Currently, there are hundreds of stable coins in the industry, and the number is increasing rapidly.
However, as the stable coin only has one purpose, it can be substituted easily, and hence choosing a stable coin can be a difficult choice for users. One could argue that it is pointless to issue another similar US dollar stable coin.
Having been open since 2013, we have observed the following long-term trend: users often prefer national currency denomination. Chinese users prefer to denominate in CNY, Korean users prefer to denominate in KRW, and Vietnamese users prefer in VND.
Gateio has listened to its users! We provide a denomination button for users in different countries and regions, so that they can convert the price display to the local fiat currency.
However, the actual transaction target is still the US dollar stable coin. The fiat denomination is only a numerical estimate, making it inaccurate. Hence, many users tend to misunderstand the price and this sometimes causes disputes.
Gateio’s Solution: Stable Coin Conversion Symbol
To satisfy the demand for stable coins with different denominations, we designed and launched the innovative function of Stable Coin Conversion Symbol. The Stable Coin Conversion Symbol is not one or more new stable coins, but a free market trading mechanism, which is a symbol to convert various US dollar stable coins (such as PAX, USDC, GUSD, TUSD, etc.) to the fiat currency of certain country.
It is actually the portfolio of multiple US dollar stable coins, of which the value is backed by the legal and compliant US dollar stable coins as well as the trust issues. It is therefore more reliable.
Simultaneously, it also saves the users from assets allocation of a variety of US dollar stable coins and choosing between them.
The Stable Coin Conversion Symbol will serve as basic trading symbols in the new trading markets of different assets. In these markets, local users are able to enjoy a friendly trading experience close to the use of their fiat currency.
For users from different regions, we will launch various Stable Coin Conversion Symbol including CNYX, KRWX, and VNDX, etc. Symbol rule is to add an X (eXchange) after the local fiat currency.
All symbols actually represent a conversion to the US dollar, just to provide transaction convenience. It is neither an actual cryptocurrency nor a negotiable security. It will not circulate on the blockchain as well.
When users need to withdraw the assets to a wallet or exchange to fiat currency, they can exchange it to any of the US dollar stable coins (USDT or PAX, etc.) in the free markets, and then transfer in the corresponding official distribution channels of stable coins, or through the C2C markets.
What makes Gateio’s Conversion Symbol stable?
The Stable Coin Conversion Symbol is actually backed by multiple US dollar stable coins. If the US dollar stable coins generate premium or discount against US dollar due to the market supply and demand relationship, the Stable Coin Conversion Symbol will also generate premium or discount against the fiat currency accordingly (e.g, reflected in C2C markets, the price will fluctuate around 1.0)
To further ensure the stability of Stable Coin Conversion Symbol, gate.io will contribute 20,000 ETH as the benchmark deposit. When the price of any of the US dollar stable coins declines and fluctuates dramatically, causing the Stable Coin Conversion Symbol falls over 2% against the fiat currency, gate.io will use the deposit to support the exchange rate of Stable Coin Conversion Symbol to stop the falling trend.
What did you say?
For instance, if the initial Stable Coin Conversion Symbol is backed by USDT valued 10 million USD, when there is more than 2% value shrinks of USDT (it is rare to have such a huge fluctuation for US dollar stable coins), the gate.io can eliminate the effect of USDT fluctuation by contributing ETH worth 200,000 USD to the market (accounting for less than 5% of the benchmark deposit).
Sounds dope dude!
Gate.io always maintains the attitude of openness, transparency and user-orientation. We hope that the innovative launching of Stable Coin Conversion Symbol will bring users a higher quality trading experience.
We will be launching some new features super soon! Hint hint: it’s margin trading and lending services very soon. Keep your eyes on the prize.
Let us know…
If you have any suggestions or questions, please contact us via our Live Support or submitting tickets. Thank you to your understanding and support for the long time!
Learn more about gate.io: https://www.gate.io
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