Stable currencies are becoming all the rage in the cryptocurrency space, and Seattle-based startup Stably – which specializes in making stable coins mainstream – is moving ahead of the game with an additional $1 million in funding.
Stably Is Making Headway in the Crypto Space
Stable currencies are designed to be less volatile than other forms of crypto. Typically, they are tied to fiat currencies such as the U.S. dollar, the yen, the yuan, and the euro. This allows them to move at a more normal rate. They are less prone to inflation and wild price swings. This has been a heavy complaint amongst most bitcoin owners, which even at press time, remains one of the more volatile assets in today’s financial markets.
The world’s number one cryptocurrency by market cap underwent its third halving earlier this week. The currency is now trading for just above $9,200, which is about $500 less than where it stood about 48 hours ago. It appears that the leadup to the halving did more for the currency than the halving itself. During that time, the currency flirted with $10K on various occasions, and while it never quite got there, it was never on the decreasing side of the spectrum like it is now.
Stably has built its own stable currency called Stably USD (USDS). Should someone offer the company $1 in USD for cryptocurrency, the company will mint one more digital token. If someone gives Stably one unit of USDS, the coin is taken out of circulation and $1 is given back to the company’s cash reserve. Thus, everything works in tandem and prevents inflation from ever entering the scene.
While the company is officially based in Seattle, Washington, most of the team works in places like Vietnam and India. CEO of the company Kory Hoang says that the venture is presently on a path to double the size of its team in the coming months. In a statement, he explains:
We are now busy building stable coins and asset-backed tokens for a handful of enterprise clients with launches scheduled for the second half of 2020.
The Pandemic Is Making People Turn to Crypto
The interesting thing is that the company can garner such a hefty amount of funding during times of economic strife and financial stress. Unemployment is at an all-time high thanks to the coronavirus pandemic that continues to grow throughout the U.S. and most portions of the globe. People are looking to secure as much money as they can right now to prepare for the future, and yet many seem to be turning to bitcoin in the process as a means of hedging their wealth.
Clearly, trust in traditional or fiat currencies has fallen over the past few months given the overprinting that’s occurred. As a result, despite monetary stress, crypto seems to be making new headway and staying afloat.