Discovering the Role Played by Fiat Backed Stablecoin in the Cryptocurrency Industry

 

 

As investors look for certainty and stability in their holdings, Fiat backed stablecoins are the latest fad that has become a huge attraction. It represents valuable tokens associated with the value of a specific fiat currency of a country. These assets will be pegged at a 1:1 ratio. To ensure that the price remains at parity with the underlying asset, a specific amount of fiat will be stored in a bank which acts as a trustee which guarantees safety and proper accounting of the asset. Popular examples of Fiat backed stablecoins are Tether (USDT) and TrueUSD (TUSD).  

 Advantages offered by Fiat-backed stablecoins 

• They are a viable alternative to the highly volatile cryptocurrencies. Price fluctuation in Fit-backed stablecoins is very minimal and negligible. 

• Complexity is not there as investors can easily understand the conceptual structure of a fiat-supported token. 

  Limitations of Fiat-backed stablecoins

• Though it offers a high level of safety for investors, it involves stringent regulations sometimes oversight from certain authorities. Since it is pegged to a fiat currency, it virtually has a nation’s pride at stake. 

• Since custodian facilities are involved, it requires sharing of data with a third party. Skeptical investors will find it not trustworthy.

• A higher level of centralization and rigidity is involved to maintain the vital 1:1 ratio. 

• The claims of being fully backed by a fiat currency lack transparency. It needs regular audits to be performed by independent authorities to verify its authenticity. 

      

       Though concerns remain regarding auditing, transparency and practices like price manipulation, fiat-backed stablecoins have a promising future amidst increasing government control and regulatory interference happening in today’s world. 

Receive Higher Traffic With the Help of ICO Community Marketing Services

 

Feed your audience with constant updates and news of your project with effective ICO Community marketing services prepared to face the market conditions by Blockchain App Factory. 

Develop a solid brand value by improving your product’s features and focussing on customization. 

Reasons to Choose Blockchain App Factory for ICO Community Marketing Services 

• Exposure is given to the top blockchain communities, forums and portals which are buzzing with new information. 

• Constant communication is maintained with the target audience by providing consistent material. 

• The feedback from the users would be utilized to make improvements which would let them feel appreciated. 

• Interested community members can also circulate their information among their respective networks which would help in getting more potential customers. 

• It is a cost-effective tool and helps in gaining publicity quickly. 

The Process That We Follow in Our ICO Community Marketing Services 

• Communication activities commence during the token sale campaign. 

• A strong consumer base is created before the official launch of the ICO project. 

• A larger target audience will be aimed at through multiple marketing channels. 

• Trust is established by dealing with queries and issues swiftly on different platforms. 

• Informative content will be posted on popular forums such as Bitcointalk. 

• Verified accounts will be created to support the ICO projects. 

• At least two separate networks will be created for generating quick awareness in a limited time. 

• Real-time updates will connect investors with prospective consumers. 

• Constant feedback and suggestions will help in improving the efficiency of the marketing strategy.            

Follow the above tactics in your ICO Community marketing services for achieving massive success.