Monat: November 2024

• The Global Dollar is issued out of Singapore by Paxos and is “substantially compliant” with the MAS
• Tether’s USDT stablecoin accounts for more than 75% of the market
• Kraken’s co-founder said there is a “lack of competition” in the stablecoin market

A group of cryptocurrency and financial technology companies have introduced a joint stablecoin, the Global Dollar (USDG), to accelerate global stablecoin adoption.

Initial partners of the Global Dollar Network include Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos, and Robinhood. According to an announcement from Paxos, the Global Network is “revolutionizing” the stablecoin market with a “trusted stablecoin that provides proportionate economic benefits to all partners.”

Pegged to the US dollar, the USDG stablecoin is issued out of Singapore by Paxos and is “substantially compliant” with the Monetary Authority of Singapore’s upcoming stablecoin framework, the announcement noted.

The introduction of the USDG stablecoin comes at a time when Tether’s USDT and Circle’s USDC stablecoins make up a majority of the stablecoin market. In September, it was reported that USDT accounted for more than 75%.

More competition needed

It’s this “lack of competition” in the stablecoin market that’s stopping the “industry from reaching its full potential,” according to Arjun Sethi, Co-CEO at Kraken.

“USDG upends this dynamic with a more equitable model that will bring mainstream participants into the ecosystem and accelerate new stablecoin use cases, “Sethi added.

Charles Cascarilla, CEO and co-founder of Paxos, said that stablecoins are changing “how people interact with US dollars and payments,” adding:

“However, the leading stablecoins are unregulated and retain all the reserve economics. Global Dollar Network will return virtually all rewards to participants and is open for anyone to join.”

“It is designed to incentivize global stablecoin usage and accelerate societal-wide adoption of this technology.”

Users of Anchorage Digital, Galaxy Digital, Kraken, and Paxos can get USDG right away; however, USDG will soon be available across all named distribution partners. DBS Bank, Southeast Asia’s largest bank, will serve as the primary banking partner at launch for cash management and custody of USDG reserves.

The post Crypto firms launch the Global Dollar stablecoin to boost adoption appeared first on CoinJournal.

• Hamster Kombat has lost 259 million players, dropping its user base by 86% in three months.
• The HMSTR token price has fallen 76%, eroding trust among early adopters and players.
• Government scrutiny and controversies have intensified concerns about the game’s future.

Hamster Kombat, once hailed as a groundbreaking tap-to-earn game on Telegram, has recently experienced a staggering decline, losing approximately 259 million players in just three months.

This dramatic drop has raised serious concerns about the game’s sustainability and the future of its associated cryptocurrency, the HMSTR token.

Hamster Kombat has lost 86% of its user base

Launched with an impressive user base of 300 million, Hamster Kombat attracted players with its unique blend of gaming and cryptocurrency earning potential.

Initially, the game thrived on its engaging tap-to-earn mechanics, allowing users to participate in simple gameplay while earning crypto rewards. High-profile endorsements, including a mention from Telegram’s CEO as “the fastest-growing digital service in the world,” added to its allure.

However, this initial success proved to be fleeting after the revelation that it had lost 259 million players over the past three months.

But why the decline in user engagement?

The decline in user engagement can be attributed to several key factors. First and foremost, gameplay issues have been a significant deterrent.

Players quickly grew fatigued with the repetitive mechanics of the tap-to-earn model, which offered little variation or depth.

Additionally, criticisms surrounding the quality of AI-generated art used in the game contributed to a growing perception of low production values, further alienating users.

Compounding these issues is the plummeting value of the HMSTR token. Once launched at a promising price of $0.009993, the token has since experienced a dramatic decline, currently trading at around $0.00237—a staggering 76% drop.

This HMSTR price decline has eroded trust among early adopters who had invested their time and resources in the platform, leading to widespread disillusionment and further player attrition.

The operational history of Hamster Kombat is also marred by contentious decisions, such as the controversial token airdrop, which was plagued by delays and frustrations among users.

Moreover, the sudden implementation of anti-cheat measures led to the disqualification of 2.3 million players, further damaging the game’s reputation. Reports indicate that many users felt betrayed, having dedicated time to earn tokens that could only be sold for minimal returns.

Adding to these woes, governmental scrutiny has emerged, with authorities in countries like Iran and Russia expressing concerns about the game’s influence and legitimacy. The association with Gotbit, a company facing regulatory issues, has only intensified speculation about the game’s stability despite Hamster Kombat clarifying that it has never worked with Gotbit as a market maker.

It now remains to be seen if Hamster Kombat will find a way out and regain its lost glory. If not we could be looking at its last kicks as it prepares to exit the scene.

The post HMSTR price plummets as Hamster Kombat loses 259 million players appeared first on CoinJournal.

• Paxos issued a new stablecoin, the Global Dollar (USDG), which is legally compliant with Singapore’s monetary laws.
• Unlike other legally compliant stablecoins, USDG will distribute a large portion of the interest earned on reserves to market participants that help propagate the stablecoin network.
• Big names like Anchorage Digital, Galaxy Digital, Bullish, Nuvei, Kraken, Paxos, and Robinhood back USDG.

Paxos, the former issuer of the now-defunct BUSD stablecoin, launched a new stablecoin called the Global Dollar, USDG compliant with the Monetary Authority of Singapore. The stablecoin is meant to be a legally compliant alternative to the likes of Tether’s USDT and Circle’s USDC.

The best of both worlds

USDG adopts features from the two largest existing stablecoins, USDT and USDC, like its pegging structure. Each USDG will be backed 1:1 by high-grade short-term government debt, predominantly US Treasuries.

This method of pegging is the most legally compliant as reserves are held with registered custodians and are liquid enough to fulfil redemption requests.

However, USDG is moving one step further to integrate yield-bearing features similar to purely on-chain stablecoins like Ethena, which are ultimately mechanisms to reward market participants that propagate the stablecoin’s use.

Paxos intends to share profit generated from its reserve assets with entities who help push USDG forward. Usually, stablecoin issuers like Tether and Circle retain all proceeds of their reserve assets as profits, a move which has proven highly profitable as Tether reported a $2.5 billion profit for Q3-2024.

However, Paxos’ CEO Charles Cascarilla, in an interview, stated that “This [USDG] is meant to be a community token” and that “Anybody can join the Global Dollar Network and accrue rewards for activity. We’re distributing something like 97% of the economics. That’s a big difference from how other stablecoins have been set up and created to date.”

Different from others in the family

USDG is not the only stablecoin that Paxos issues. Earlier in June 2024, the company issued the Paxos Lift Dollar (USDL) in UAE which is regulated by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM).

USDL is a yield-generating stablecoin with a programmatic daily yield of around 5% for end users.

Unlike the mechanism employed with USDL, Paxos will share yields generated by USDG’s reserve assets with the companies that serve various functions that contribute to the growth of the stablecoin network rather than end users.

Other stablecoins in Paxos’ lineup include PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG). USDG is available in the United States.

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