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Coin98 (C98) intends to launch stablecoin

In a recent sharing session, Mr. Le Thanh – the founder of Coin98 – shared many useful experiences and orientations for investors during a downturn in the market. In addition, Mr. Le Thanh also discussed and had a little “disclosure” about the fact that Coin98 is preparing to launch a stablecoin to serve the expansion of his ecosystem.

According to Mr. Le Thanh, the fact that recent stablecoin projects such as USN (stablecoin of Near Protocol) or USDD (stablecoin of TRON) have attractive APY levels ranging from 20% – 30%, in essence is “burning money” to attract and educate users, instead of using it on other marketing solutions.

This is an effective option in the early stages, however, it is also a very risky model if the project does not have a reasonable roadmap to adjust APY. Mr. Le Thanh also raised his point of view for a good stablecoin, that: “a stablecoin must be stable and safe“.

Personally, I agree with this point of view because the main task of a stablecoin is to mediate payments and store value in the market, so the stablecoin itself needs to be stable and safe first. The recent breakdown of UST and LUNA is a great lesson for projects that want to grow quickly despite the consequences.

In which direction will Coin98’s stablecoin develop?

In the interview, the founder of C98 also revealed some ideas for Coin98’s stablecoin development, namely, concern about stability, sustainability and liquidity, so will not commit to APY interest. high. At the same time, Coin98’s stablecoin will be built around a hybrid model with cross-chain.

Coin98’s stablecoin will focus on becoming a stable token and connecting chains with each other, making it easy for users to interact and transfer assets between ecosystems. From there, stablecoins will be used more widely, generate profits (through the collection of transaction fees), increase supply and be expanded stably. In addition, Mr. Le Thanh also revealed that a part of the transaction fee of this model will be divided back to C98 token holders, this is a way to increase the value of C98 token.

This is not a new model, when some projects have used intermediary tokens to serve their cross-chain solutions, in which, you can learn about Synapse – a project that combines stablecoin nUSD mediates the transfer of assets between chains. However, in reality, there has not really been a stablecoin that stands out and captures the entire market share. As a project that has a stable number of users, and integrates many functions (in addition to being an on-chain wallet, Coin98 also integrates Swap, Staking …), so if the cross-chain model and stablecoin are combined success, Coin98’s stablecoin has a lot of opportunities to capture market share.