Only 30% of the Known Stablecoins are Live and Operational
According to new research, only 30% of the announced stablecoin tokens, are live and operational, says blockchain research group Blockdata on 26th of June.
The other 70% are either in the development phase or have been completely shut down by their respective firm’s.
While discussing the consequences, Blockdata researchers believed that 2019-2020 may record a high number of stablecoins going live, with an estimate of 119 stablecoins to launch this year.
While examining the possible factors that lead to the failure of stablecoin, the researchers noticed that most of the stablecoins are backed with assets like gold.
Further, they accounted that two-thirds of failed stablecoins were backed by gold as a primary asset.
While looking closely to the failed stablecoins, the researchers figured out factors like falling volatility, physical storage complication and scams to be responsible for the closure of stablecoins.
While studying the prevalence of Ethereum based stablecoins, a report identified that there are about 15 different blockchains that stablecoins are implemented on.
Ethereum holds an approx of 50% share of all the stablecoins in terms of Blockchain and Bitshare and Stellar being the other top sharers.
Still, asset-backed stablecoins holds the majority of the live stablecoins in the market by about 95%. Thus continue being a most common stablecoin insurance provider used in developing of stablecoins.
Previously Steve Forbes a namesake of business publication giant told Mark Zuckerberg of back his virtual stablecoin Libra with gold.
Steve did this as he believed that gold would provide fixed value to the upcoming stablecoins in the market. Steve further added:
“For a variety of reasons gold holds its intrinsic value better than anything else. It’s like a measuring rod. It no more restricts the money supply than the 12 inches in a foot restricts the size of a building you might wish to construct. All it means is that the Libra will have what no other currency has today: a fixed value.”
