Just 30% of Known Stablecoins Are Live and Operational
According to a study published by the blockchain research group Blockdata on June 26, only 66 stablecoins, 30% of the total announced token, are actually live and operational.
The study reveals that 70% of launched stablecoins are unavailable for purchase as they have shut down completely or are still in development.
Researchers from Blockdata believe that one consequence of this is that 2019–2020 may see a record high of new stablecoins going live, with 119 estimated to launch in 2019.
The researchers also looked at several possible factors that could have resulted in the demise of the majority of these stablecoins, and found that most of them had resembled those backed by or pegged to commodity assets such as gold and other precious metals. In fact, stablecoins pegged to gold formed two-thirds of all abandoned stablecoin projects.
A closer look at these failed cryptos also revealed other fundamental factors such as volatility, complications in physical storage, and of course, outright scams (projects that did not even intend to be successful also qualify as scams).
The study also recognizes the prevalence of asset-backed stablecoins, with around 95% of all live stablecoins, followed by Ethereum-based stablecoins, Bitshares-based and Stellar-based stablecoins.
As previously reported by Cointelegraph, Steve Forbes, the namesake of business publication giant Forbes, recently told Mark Zuckerberg to back Facebook’s stablecoin-like virtual currency Libra with gold.
Forbes believes that gold will provide fixed value for the upcoming virtual currency given the precious metal’s purported history of stability:
“For a variety of reasons gold holds its intrinsic value better than anything else. It’s like a measuring rod. It no more restricts the money supply than the 12 inches in a foot restricts the size of a building you might wish to construct. All it means is that the Libra will have what no other currency has today: a fixed value.”