The current state of things in the crypto market has increased the need for more stable and less volatile cryptocurrencies hence Stablecoins. 2018 has seen the launch of several Stablecoins most of which are pegged against the USD. Even though the year is almost coming to an end, it doesn’t look like the news of new stablecoins will be subsiding any time soon. In light of this, Chinese cryptocurrency billionaire Li Xiaolai has recently announced the launching of a new stablecoin project.
According to the announcement the stablecoin project will operate through the Hong Kong-based blockchain fund Grandshores Technology.
Based on a recent report, Xiaolai himself will be very active in the developmental stages of the coin. He has plans to take part in all stages involving the creation of the coin right to its launching. The report also made it known that Xiaolai also has plans to create a DAG-Based database and other blockchain products.
Xiaolai has so far not made any comment as regards how the stablecoin value will be pegged. So it is not yet clear whether the coin will be pegged against a traditional fiat currency or it will be pegged against a well known precious metal like gold or silver. However, it should be noted that the press release by Xiaolai made it clear that the coins will be focused on serving a global mainstream audience.
This is not the first time Grandshores Technology will be involved in a stablecoin creation project. So far, the firms have collaborated in the creation of three stablecoins, “with values tied to the Japanese yen, the Hong Kong dollar and the Australian Dollar.”
Going by this, Xiaolai’s Stablecoin initiative is likely to get pegged against a traditional Fiat currency.
Xiaolai Changed his Tune
This report is coming months after Xiaolai made a public announcement via his social media accounts that he would no longer be investing in any form of crypto-related project. Then, he stated “the lack of regulation and regular criminal activity, including hacking, associated with the industry, ” as the reason behind his decision.