Thursday, January 23, 2020

Dan Larimer Confirms New EOS Stable Coin on Telegram

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Grace Joseph
Freelance Writer, Blogger, and Crypto Enthusiast. Studied Computer Science in University and Undergoing a Masters Degree Programme in Computer Engineering Contact@ reigngracia@gmail.com

When Bitcoin price spikes, EOS is among the first to take the lead and this pattern has been exhibited since the year began. However, Daniel Larimer, Block.One’s chief technology officer (CTO) has even more interesting news. The CTO on April 1 confirmed that plans to launch an EOS stablecoin are still ongoing, according to a media report on April 2.

Stablecoins are Less Volatile than Bitcoin and Other Altcoins

Stablecoins are known to be less volatile than Bitcoin and the same can be said about altcoins whose price tend to fluctuate easily. The latter’s price is maintained since it is backed by a fiat currency or another digital asset. This time around, a stablecoin that will run on the EOS blockchain will soon be launched even though it’s not the first of its kind since there is CarbonUSD.

According to Daniel Larimer, his idea for an EOS stable coin is currently pending legal review before its publication. This was after he was asked whether there are still plans in that direction to launch the Stablecoin or if he intends implementing it on the Bitshares blockchain. A response in his own words was: “My stable coin ideas are pending legal reviews before publishing.”

EOS Stablecoin to be Based on Crypto over-collateralization

More light on the proposed asset reveals that it will be based on crypto over-collateralization (OC). In this case, more collateral than what is needed will back the stablecoin. It is a method employed in the financial markets to lower the creditor’s risks or get a higher rating from a credit rating agency.

Daniel Larimer also said:

My idea boils down to combining a short position and bancor and using bancor fees to automatically recollaterize and using a price feed to nudge bancor price in the right direction when the market fails to for too long.

CTO Says EOS is Faster and More Flexible than Ethereum

Asides talking about the Stablecoin, the CTO also made comparisons between EOS and Ethereum. In his opinion, EOS is faster and more flexible than the latter. He also pointed out that there is no need to offer rewards to miners. Rather, those who want to transact should bear the cost of adding their records on the blockchain.

Despite being hacked on Bithumb cryptocurrency exchange on March 29, it is remarkable to note that EOS price has also surged upwards with a majority of coins on the market. Over 3 million of the coins may have been stolen, but its price is currently valued at $4.86 a 15 percent increment from its price hours ago.

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