Our client wants a crypto trading platform that will offer stable cryptocurrencies.
Blockchain-based cryptocurrency trading is trending these days. But most of the cryptocurrencies encounter a major issue – high price volatility. As such, many individuals are hesitant to invest in any cryptocurrency platform despite their willingness to give it a try. They look for a Cryptocurrency platform that would offer price stability to a certain extent.
Biz4Solutions helped the client to build a Blockchain-based cryptocurrency trading platform app that provides a way to store value and make transactions without the fear of price volatility that is often associated with other cryptocurrencies. So, unlike most other cryptocurrencies, whose value is prone to significant fluctuations, stablecoins are intended to have relatively stable values.
Stablecoins are progressive crypto-assets created on Blockchain platforms. They have been designed to maintain a stable value relative to a specific asset or currency, such as the US dollar. This stability is achieved through the following means:
- Stablecoins are backed by collaterals such as other cryptocurrencies or other assets.
- Other algorithms are used to manage the supply of the stablecoin to maintain its value. When the stable coin’s value exceeds the value of the currency it’s pegged with, algorithms generate extra tokens to lower the value. And, when the value of the stablecoin comes down, algorithms burn additional tokens to maintain the peg.