By Solomon Odunayo
Weiss Crypto Ratings, the leading provider of independent, unbiased, trusted ratings of Stocks, Mutual Funds, Cryptocurrencies, ETFs, and Financial Institutions, has a few hours ago buttressed the interest of the founder of IOHK Charles Hoskinson to build a stablecoin that is patterned after DAI on Cardano (ADA).
According to the popular crypto rater’s opinion, DAI is not a trustworthy stablecoin for Cardano, but the fact that it has a slim possibility to fail makes it better than stablecoins such as Tether (USDT) or USDC and also makes it the best choice for Cardano.
Weiss Crypto Ratings shared this, “We hear that Charles Hoskinson wants to build a version of DAI on Cardano. So far, DAI is the only trustless stablecoin in crypto world, but there should be more. Stablecoins like DAI have no central point of failure, which is a BIG advantage over the likes of USDT or USDC.”
CEO of Cardano (ADA) Charles Hoskinson Responds
In response to the popular recommendation coming from Weiss Crypto Ratings, the CEO of Cardano, Charles Hoskinson said that such will be a big achievement if it eventually plays out as suggested.
He revealed that he started in the cryptocurrency space with stablecoins and there have been deliberations regarding it in the past seven years.
Charles said, “If we do this, then it will blow everyone out of the water. I started in this space with stablecoins and we’ve been thinking about them for seven years.”
If we do this, then it will blow everyone out of the water. I started in this space with stablecoins and we've been thinking about them for seven years https://t.co/t4FGxW7cLk
— Charles Hoskinson (@IOHK_Charles) February 11, 2020
In this regard, a channel of Cardano (ADA) daily update, identified on Twitter as The Cardano Report asked Charles for clarity regarding the benefit the ADA holders would derive from it.
The Cardano Report asked this, “So, I’m struggling to connect the dots… How would a Cardano stable-coin benefit ADA holders? Seems the stable-coin platform would need to be interchangeable with numerous coins to make it accessible to a larger market…no? Or, would this project be separate from Cardano?”
In response to the above question, Charles Hoskinson tweeted thus, “If the coin uses Ada as part of its Central Bank mechanism, it creates demand for the underlying asset.”
If the coin uses Ada as part of its Central Bank mechanism, it creates demand for the underlying asset.
— Charles Hoskinson (@IOHK_Charles) February 12, 2020
Meanwhile, Jared Tate, the founder, and CEO of DigiByte (DGB) had also stressed the importance of creating a stablecoin backed by DGB, which he sees as big means to enhance the usability of his cryptographic project DigiByte.