There is a fair amount of competition in the world of digital stablecoins right now. On the one hand, there’s Tether, with a somewhat dubious reputation in the eyes of most people. There’s also TrueUSD, which recently started gaining traction. It now seems Alchemint is preparing to issue a stablecoin based on NEO’s technology.
One thing which no one can deny is that there is no shortage of stablecoins in the world of blockchain and cryptocurrency. While that is a positive development in one way, it also remains to be seen how successful all of those tokens will be in the future. Tether is still the leading stablecoin in this industry, as it has the highest market cap of all stablecoins on the market today.
Whether or not Tether’s USDT will be rivaled by TrueUSD in the long run remains an open question. TrueUSD was only launched recently and is now listed on Binance despite some liquidity concerns. Moreover, the world’s biggest trading platform has decided to pair USDT with TrueUSD to see how users would respond.
While that competition is quickly heating up, it now seems there is another stablecoin waiting in the wings. Known as SDUSD, it is a new stable currency pegged to the US dollar. Unlike the others, however, this particular stablecoin will not be issued on top of OMNI or Ethereum. Instead, the Alchemint team is looking to use the NEO blockchain for this venture.
On paper, this makes a lot of sense. The NEO blockchain offers very similar technology to Ethereum, even though its underpinning technology is very different. Even so, the Alchemint team is taking a gamble by creating a stablecoin on top of the NEO chain. Additionally, maintaining a 1:1 ratio with the US dollar is always challenging, even for the other stablecoins out there.
The launch of the SDUSD currency is currently planned for late 2018. At that time, the stablecoin will be introduced on partner exchanges, which will introduce some much-needed competition to this industry. It is expected that the supply of this stablecoin will exceed 10 billion after a year, although it remains to be seen if that will actually happen.
In the end, it is good to see more stablecoins enter the world of cryptocurrency these days. These currencies introduce people to the concept of digital assets which have a specific value associated with them. That doesn’t mean users of SDUSD will automatically be interested in buying NEO – or any other cryptocurrency – by any means, but every project has to be given the benefit of the doubt.