The influx of stablecoins in the cryptocurrency space cannot be ignored. Although numerous projects compete with one another, Tether’s USDT remains the dominant market. Foreign stablecoins, such as the one backed by the Euro, are also successful, albeit with less volume. It now appears a Canadian stablecoin will be issued, although there are some concerns regarding the project itself.
The QCAD Concept
One has to commend every single project which aims to digitize fiat currencies and create a more useful variant of said currency. In Canada, it would be logical to see a stablecoin backed by the Canadian Dollar at some point. If the Stablecorp website is to be believed, such a project is currently in development. It aims to peg the Canadian Dollar to the QCAD stablecoin and maintain value equivalency at all times.
That is much easier said than done, especially by a company virtually no one has ever heard about. While the website claims this is a transparent and auditale stablecoin, it remains to be seen if this project is indeed legitimate. It would not be the first time a fake stablecoin is created for the sole purpose of defrauding investors who see merit in a digital fiat currency. One can only hope that is not the case where Stablecorp is concerned, albeit it is very difficult to say for sure.
Who is Stablecorp?
This is where the warning signs begin to amass rather quickly. No one knows exactly when Stablecorp was created or why this company would suddenly be allowed to create a new stablecoin pegged to the Canadian Dollar. Prior to doing so, one would need to obtain approval from the respective agencies and government officials. So far, it seems that has not happened, as there is no evidence of such an agreement at this time.
In fact, when conducting a Google search for this particular company, no results come up whatsoever. That in itself doesn’t help in lending any credibility to this particular venture, as it only further confirms this may not necessarily be something users want to invest in. There have been discussions regarding a Canadian stablecoin for some time now, but until an official source confirms that will happen, it is best to avoid projects which raise more questions than they provide answers.
Should you Trust it?
Considering how the website associated with QCAD is very sparsely populated, it seems best to avoid this project until either more information is added, or someone officially confirms this venture is legitimate. Based on the current information – and a project team of four members without any official explanation as to what their functions are – there simply isn’t enough credibility associated with QCAD right now. That may be a temporary issue, although it is often the sign of a scam.
Additionally, it seems no one can sign up for the Stablecorp website, as users can only log in. How and where such login credentials would be obtained, is also unclear at this time. For a domain which was registered just a few months ago – and which has WHOIS record seemingly redacted – it seems the explanation simply doesn’t make any sense. For now, users are better off avoiding this company, as it seems something fishy is going on.