Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche


First EOS Stabelcoin CarbonUSD is here

The first EOS stablecoin CarbonUSD (CUSD) is available. Interestingly, an Ethereum version of Carbon USD is also available. Note there could be other EOS stablecoins out there, but CarbonUSD is the first one I have seen.

The developers tout CarbonUSD as the first “whitelisted utility token.” Theoretically, CarbonUSD will be one-on-one backed with US Dollars. Hence one CarbonUSD is supposedly worth $1 USD.

CarbonUSD plans to keep the dollars in a blockchain trust maintained by an algorithm. To clarify, the algorithm will supposedly pay $1 when you pay with a CarbonUSD token. Hence, CarbonUSD is really a decentralized app (DApp) they program to pay a dollar when it meets certain conditions.

CarbonUSD is available in both EOS and Ethereum

In fact, they will program CarbonUSD to wire US dollars to individuals from a trust. If CarbonUSD works as advertised, only token holders can access the trust via the DApp.

Interestingly, CarbonUSD will be available in both Ethereum and EOS backed version. Importantly, CarbonUSD is part of the BancorX liquidity network. BancorX  is a protcol that allows instant conversion of select EOS-based tokens. In addition, BancorX allows for conversion between EOS and Ethereum tokens.

Thus, CarbonUSD allows for conversion of US Dollars to EOS via a back-door method. Strangely, CarbonUSD (CUSD) is not part of Bancor’s Network for the conversion of Ethereum utility tokens.

In addition, CoinMarketCap does not lisCarbon USD (USD)t . Thus, CarbonUSD is not a widely traded cryptcourrency yet. Thus, little data about First EOS Stabelcoin CarbonUSD is available.

However, BancorX’s conversion app gave CUSD a Coin Price of $1.03 and a 24-Hour Market Volume of $22,854 on February 24, 2019.

What is CarbonUSD?

CarbonUSD is the work of a team of developers who have reportedly attracted some impressive venture capital.

The investors listed at CarbonUSD’s website include FirstMark, General Catalyst, Haytack, and PlugAndPlay. Its team has connections to Stanford University, Columbia University, UBER, Hedera Hasgraph, Consensys, Plenty, and the University of Southern California (USC).

Notably, CarbonUSD has no apparent connections with two other cryptocurrencies; Carboncoin (CARBON) and Carboneum (C8), CoinMarketCap lists. To explain, Carboncoin is apparently an effort to create a low energy cryptocurrency. Meanwhile, Carboneum is an Ethereum-based utility token intended to power a new trading platform.

How is CarbonUSD different from other altcoins?

The apparent difference between CarbonUSD and most altcoins is that they designed CarbonUSD as a mechanism for facilitating the transfer of US Dollars.

Thus, CarbonUSD is more like a check or a letter of credit than a traditional altcoin. To explain, CarbonUSD’s value comes from the dollars each CUSD coin represents rather than the actual cryptocurrency.

Hence, CarbonUSD’s biggest appeal could make spending and transmitting US Dollars easy. Thus I view CarbonUSD  as a fiat currency transmission mechanism rather than a cryptocurrency. Under those circumstances, CarbonUSD (CUSD) could receive the approval of central bankers and banking regulators.

Moreover, CarbonUSD could add fiat currency to smart contracts and DApps. For instance, a smart contract insurance policy or annuity could pay beneficiaries in dollars via CarbonUSD. Hence, CarbonUSD could be the killer app that gets ordinary people to accept smart contracts and Dapp documents.

In conclusion, CarbonUSD is not trading yet, but it is a cryptocurrency to watch. If it works as advertised, CarbonUSD could quickly become one of the most popular stablecoins around.