Tuesday 3 July 2018
It seems that there is no cutting-edge technology or financial principle keeping the price of stablecoins stable. It is simply the psychology of investors. BitMEX Research studied two of the most popular distributed stablecoins — BitShares-based BitUSD and MarketDAO-based Dai — to examine the mechanism these two cryptocurrencies relied on to keep their price stable. The research found that what ultimately keeps stablecoins at the same price point is what BitMEX refers to as the “why would it trade at any other price” principle – a peculiar market logic which emerges when majority of investors trade a certain asset at a…
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