The cryptocurrency market is regarded by the public as highly volatile. Nevertheless, stablecoins are one of its pillars. This is known to representatives of exchanges, who often build the positions of their platforms based on stablecoins. With this, FTX joins the game.
New stablecoin from FTX
The CEO of the FTX exchange, Sam Bankman-Fried, had the pleasure of taking part in an interview recently, in which he shared an interesting piece of information. As he points out, his exchange has been working on creating a new stablecoin for some time.
Stablecoins have become very important coins on the market in recent years. Looking at the rankings of crypto assets with the highest capitalization, we see that as many as three representatives of this segment sit in the top ten. These are Tether (USDT), USD Coin (USDC) and Binance USD (BUSD). Their approximate capitalizations, at the time of writing this text, are, respectively: USD 69 billion, USD 44 billion and USD 21.5 billion. The last of the coins, which is a creation of the Binance exchange, deserves special attention. The fact that it largely drives the exchange’s turnover has undoubtedly caught Bankman-Fried’s attention. Market observers are taking note. Among them is popular on-chain analyst Will Clemente, who comments on the matter in these words:
“SBF has watched BUSD’s market share grow 30-fold over the past 2 years and decided it wanted a piece of the pie.”
Stablecoins under the watchful eye of regulators
For the time being, it is unclear what kind of stablecoin the FTX exchange would represent. Nevertheless, to this day, the phrase “stablecoin” sharpens the senses of many market regulator. All thanks to the collapse of the Terra USTC algorithmic coin, which shook the entire cryptocurrency space. You can read more about this dramatic event in the article titled: “Terra (LUNA) and its stablecoin UST crash hard after losing its link to the USD”. We invite you to read it.
Such an environment is not conducive to the creation of new products. However, Bankman-Fried himself is a well-known figure, and the FTX he manages, a reputable platform. Faced with these facts, launching a new stablecoin on the market should be much easier.
Two ways to develop FTX
Bankman-Fried himself, during his speech, also pointed out that the entity he runs has two potential paths for development. One is acquisitions of other companies, and the other is working out its own way to the top. The words came in reference to rumors about alleged plans to acquire the Robinhood shopping app. However SBF denied moments later that this was his company’s goal.