I am a frequent trader of cryptocurrencies and in some instances, I trade in stable coins. Stable coins are favorable due to their lack of volatile prices which is very convenient for me since I trade every day. As much as stable coins are better than normal coins to trade, there are some challenges which I encounter in my daily trading activities. In this article, I am going to discuss the challenges that one faces while trading in stable coins as well as the solutions to those problems, which are provided by Crypcore.
Crypcore is a project whose main purpose is to provide the crypto space with a stable coin which integrates a solvency system that gets rid of extreme price swings. Unlike other stable coins, Crypcore is going to be collateralized by another cryptocurrency.
Challenges of stable coins and their solutions.
🔗 An issuer of stable coins has too much power. The issuing organization has the power to withdraw the stable coins from circulation at any time which leaves me as a trader in a certain exchange powerless. This challenge is however not present while trading Crypcore due to the technology on which Crypcore is based on.
🔗 The majority of stable coins are issued in the same manner that money is issued by central banks. There is a centralization feature that gives the issuance organization so much power such that the stable coins are vulnerable to over-issuance and defenseless against inflation. This will, however, be non-existent in Crypcore because the number of stable coins in circulation will be determined by the Cryptonote protocol emission logic which everyone can see.
🔗 There is a high level of instability of virtual collateral thus using it to back the stable coins is very hard and confusing to a trader. This will not be a problem with Crypcore stable coin.
🔗 There is a lot of centralization with fiat pegged stable coins because they have to interact with fiat banking systems. These banking systems have a lot of power over the stable coins to a point where the stable coins become highly constrained and regulated. Crypcore, however, is based on advanced blockchain technology which thrives on the principle of decentralization.
🔗 In the instance that I want to liquidate current stable coins, the process is usually tedious and time-consuming because majority of stable coins providers require me to wire money to my bank account which means I have to pay banking fees. Buying stable coins is equally slow because of occasional KYC procedures and money transfer.
🔗 Smart contracts of some crypto collateralized digital assets are very hard to comprehend even for an everyday user like me. To eliminate this problem, Crypcore is going to implement a very simple solvency equation system which is easy to comprehend equation and parameters.
🔗 The final challenge with the majority of stable coins is that they do not offer me any level of anonymity.
CONCLUSION.
Crypcore is about to revolutionize the entire stable coins scene by eliminating the problem of price volatility and collateralizing its stable coin with another cryptocurrency. I cannot wait to become a part of this innovative project and improve my crypto experience altogether.
For more information, please visit:
🔗 Website: https://crypcore.com/
🔗 Whitepaper: https://crypcore.com/crypcore_whitepaper_version_1.pdf
🔗 Telegram: https://t.me/crypcore_group
🔗 Facebook: https://www.facebook.com/Crypcore-106479097438958
🔗 Twitter: https://twitter.com/crypcore1
🔗 Reddit: https://www.reddit.com/user/crypcore
🔗 Bounty: https://t.me/https://t.me/Crypcore_bounty
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