Re: [ANN][DEFI & CEFI] Psyche.Cash | The Future of DeFi | Private sale
Backing by fiat currency is not working in the crypto space, hence the USDT has the problem. Therefore the rest of stablecoins are back by the algorithm and so Psyche is.
Although surrounded by a lot of controversies, the most popular stablecoin today is Tether (USDT) and has the highest daily trading volume of any cryptocurrency after Bitcoin and Ethereum.
Psyche is an algorithm-based stablecoin, similar to Basecoin, right?
The stablecoin project Basis, which had received over $100 M in venture capital funding, shut down in December 2018.
What is your guarantee that this project will not suffer the same fate as Basis?
I am not really familiar with algo-based stablecoin so I searched a lil bit about it.
And this kind of stablecoin is categorized as seigniorage-style (not backed).
https://en.wikipedia.org/wiki/Stablecoin
And I read what you are saying here about project Basis.
So interesting what will be their future here?
And from this medium article, you can read how algo-based stablecoin works.
https://medium.com/@paytomat/algorithmic-stablecoins-5e6d0b23ff7
Can they really pull it off in the market?