Tether dominated Stablecoin conversations at the beginning of the year with its amazing success. From January 2017 to August 2018, the amount of Tether tokens outstandingly grew from about $10 million to about $2.4 billion.
Stablecoins are any cryptocurrency pegged to a stable asset, such as gold or fiat currencies (legal tender backed by a government). Tether is alleged to be backed by one US dollar for each token issued in a reserve. However, the creators of Tether have not issued a promised audit to its currency reserve, causing ongoing controversy to remain unresolved.
At Addy, we were interested in monitoring Reddit conversations about Stablecoins during the first seven months of this year given the dynamic and sometimes chaotic, nature of this emerging space within the ecosystem of cryptocurrencies.
Addy is an AI-powered platform that organizes large data sets so that insights can be easily discovered.
Tether dominates most of the Reddit conversations around Stablecoins, a relatively new topic in of itself. Many are discovering the concept of Stablecoins and sharing knowledge with one another. Most of these conversations are very positive about Tether’s potential to help bring stability into the cryptocurrency market, and the outlook of its tokens.
More people are joining the conversations about Stablecoins. Some of the initial enthusiasm for Tether are starting to be challenged. There are fears about the possibility of Tether failing due to its lack of transparency.
People start sharing alternatives to Tether and comparing these different coins and approaches.
Tether is no longer the leading topic. People are sharing information and discussing the merits of different alternative Stablecoins. It’s obvious now that other big and small players are getting into Stablecoins with new innovative approaches. New popular mentions include USDX (backed by a fiat currency in an Algorithm Central Bank to establish stable exchange rates), Havven (collateral-backed tokens) and DAI (tethered to US dollar, but completely decentralized in Ethereum blockchain).
The amount of conversations spikes in April as Stablecoins itself becomes a hot topic. There is great momentum in the emergence of new approaches to Stablecoins, causing the sub-Reddit boards to light up in discussions.
Stellar, a platform for creating Stablecoins, is rapidly trending upward. People are now espousing the merits of NEO and NANO. Some are excited by Digix, a gold-backed Stablecoin. By now, you may need a new dictionary to follow the discussions surrounding stablecoin.
Much of the discussion turns to those speculating about building a portfolio of Stablecoins for the best returns. Some people are debating a possible 100X return on original investment. Within this speculative tone, DAI bubbles up as a top topic with its decentralized approach. Libra Credit is working with DAO to build a decentralized lending ecosystem with blockchain technology. IOTA launches what it claims to be the “next generation” of distributed ledger technology.
Tether drops to the bottom of the list of topics. The general tone on cryptocurrency investment begins to sour. There is a decrease in price-speculative conversations and more about the core values of each coin, true scalability and good use cases. The investors are becoming more educated on how to value Stablecoins.
Kinesis rises to the forefront of discussions. It is a yield-bearing digital currency based on a 1:1 allocated physical gold and silver. Its vision is to deliver an evolutionary step beyond any monetary and banking system by proportionally returning yield to encourage usage.
Another player, Relex, is the first cryptocurrency developed for real estate development opportunities that supposedly will increase transparency. DAI continues to have staying power in the conversations as commenters readily jump from one Stablecoin to a new one very quickly.
The gyrating trends within the conversations about Stablecoins in just the first 7 months of this year show its volatility and immaturity. Given the role that Stablecoins will play in the overall cryptocurrency ecosystem allows for so much potential. Keep up with the trends at addy.ai or contact us about our data models at email@example.com.