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Good Morning, Switchers 🌞
👋Welcome to Switch Daily.
Feeling the mid-week blues already? Well, allow us to shake it of with some exciting *woof woof* goodness. Shiba Inu—the puppy Dog coin is getting some major whale attention.
According to WhaleStats, SHIB is the most popular altcoin among the 1,000 largest ETH whales, excluding ETH itself. The top ETH 1,000 wallets have more than $161.8 million in SHIB, accounting for about 5% of their total holdings.
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Here’s what we’ve got for you today:
Market pulse
Iran and Russia’s new stablecoin
News feed
Meme of the day
Market pulse 📈
The market is balancing on a tight rope 🧗♂️
The overall crypto market has been struggling to touch the psychologically important $1 Trillion level. US economic indicators and corporate earnings weighed on the crypto market on Tuesday.
The top ten cryptos by crypto market cap experienced a mixed session. ETH dropped 0.71%. MATIC also hit reverse and slid by 2.58%. BTC also registered a marginal loss of 0.29%. However, BNB and XRP avoided losses, with gains of 0.10% and 0.27%, respectively.
The Gold Standard - 🇮🇷 + 🇷🇺 = 🪙
We heard that there is a potential new kid in the ‘stablecoin’ block.
And man, it’s parents are quite the influential powers.
Iran and Russia to issue a new stablecoin backed by Gold.
Damn, if this picks up could be day 1, event 1 of establishing a new economic order everywhere.
No idea why it's getting no oxygen from the global press...
— Nikhil Kamath (@nikhilkamathcio)
2:02 PM • Jan 16, 2023
A Token for the Persian Gulf
Russia and Iran are seemingly working together to create a new stablecoin for the Persian Gulf. They are planning to launch a crypto token which is backed by gold to serve as a payment method in foreign trade.
The goal is to enable cross-border transactions instead of fiat currencies like the United States dollar, the Russian ruble or the Iranian rial. and the token would operate in Astrakhan's special economic zone, where Russia has begun to accept Iranian cargo shipments.
Wait, what is a stablecoin?
Definitely not a Horse coin! 😛
A stablecoin is a cryptocurrency that is pegged to the value of an asset or group of assets, such as the U.S. dollar, gold, or a basket of currencies. The value of a stablecoin is intended to remain stable, hence the name, as it is backed by the underlying assets to which it is pegged.
In this case, the two countries intend to create a coin pegged to gold. Why not peg it to the Iranian Rial or the Russian Rubble? Or even the US dollar?
Why Gold?
A stablecoin pegged to gold may be seen as better than one pegged to the US dollar for a few reasons:
Inflation hedging: Gold has historically been seen as a hedge against inflation, as its value does not depend on a government's ability to print more money. This means that the value of a stablecoin pegged to gold may be less affected by inflation than one pegged to the US dollar.
Currency risk: A stablecoin pegged to the US dollar exposes holders to currency risk, as the value of the dollar may fluctuate against other currencies. A stablecoin pegged to gold, on the other hand, would not have this exposure.
Decentralization: Gold is a decentralized asset that is not controlled by any one government or organization, making it less susceptible to manipulation or censorship. Also, both Iran and Russia won’t have to wage another war for custody later.😅
However, a stablecoin pegged to gold comes with its own unique set of challenges, such as gold storage and logistics, and it may also be more volatile than a stablecoin pegged to a fiat currency such as the US dollar.
This is Huge!
Iran and Russia are among the countries that had prohibited their people from using cryptocurrencies such as Bitcoin BTC and stablecoins such as Tether (USDT) to make payments in the past.
But in Aug 2022, the Iranian government had approved the use of cryptocurrency for imports into the country. Around the same time, the Bank of Russia also allowed the use of crypto for foreign trade.
If this stablecoin turns out to be legit, this could be the first step of mass crypto adoption across the world, could be a new revolution altogether.
Note: None of this is financial advice, and we’re not financial advisors. We’re merely your fellow investors who share information on the go.
What else is trending? 📻
Following news that Apple will release a VR/AR, headset, tokens powering the metaverse, like Decentraland's MANA, are rallying hard this week. MANA, the native token of the popular Web3 game Decentraland, increased by an astounding 81.9% this week.
The developers of Shiba Inu posted an update about the upcoming beta launch of Shibarium, its Layer-2 network, on Sunday. They revealed that Shibarium transactions will include SHIB token burns.
A panel of blockchain industry personalities concluded at the World Economic Forum (WEF) in a wide-ranging discussion that the economy will become increasingly tokenized in the future.
Meme of the day…
Thank You,
See you later, folks. 👋
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