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Published On: Thu, Jan 3rd, 2019

eToro Set to Release Its Own Cryptocurrency

Cryptocurrencies are already a diverse market, as more companies issue their own cryptocurrencies and they become increasingly versatile and accepted. In the middle of this, social trading and investing platform eToro is set to release its own cryptocurrency called Stablecoin in 2019. Let’s take a look at the cryptocurrency and what implications it could have for the whole industry.

photo/ Gerd Altmann

What Is Cryptocurrency?

You may have heard of cryptocurrency before in its most well-known form, which is Bitcoin. There are many forms out there and a lot of these are on eToro already. A cryptocurrency is any currency that is digital or virtual and is used as a way to exchange or buy things from others. It uses a special type of cryptography, which keeps transactions safe and secure and ensures only the person who owns the cryptocurrency can use it. New cryptocurrency can be made through a process called mining. As cryptocurrency becomes more and more popular, eToro decided to get themselves stuck into creating their own cryptocurrency. Cryptocurrency can often be measured in the form of real money too, with the likes of Bitcoin constantly changing in price. If you want to find out more information about what each cryptocurrency is worth, check out CoinDesk for real-time updates on prices of many of the currencies available on eToro.  

What Does eToro Offer Already?

eToro already supports a range of cryptocurrencies, 10 to be exact, before the release of its own in 2019, which will bring its total to 11. This includes Bitcoin, Bitcoin Cash, Litecoin, Ethereum, Ripple, DASH, Stellar, Ethereum Classic, EOS, and NEO. eToro was once known for its limited amount of crypto trading, but in recent years, this has begun to expand, with around 70% of the users on the site now trading in at least one of these cryptocurrencies. As the popularity of trading on eToro continues to rise, eToro have decided to make their own cryptocurrency. With these figures, it’s no wonder eToro want in on a bit of the action, especially on their own website.

eToro already offers a range of cryptocurrencies, and due to the increasing popularity of users trading in these, eToro has set off to release their own in 2019.

A Few Words on eToro

eToro is not just a social trading platform. It is an international multi-asset brokerage firm originally founded in 2006. It has offices in England, Cyprus, and Israel. The company reportedly invested a million dollars into the GoodDollar project and is seeking to develop several projects it says are for the social good. eToro already says that the Stablecoin or another, future cryptocurrency will give a percentage of interest to those who need loans. If you want to learn more about eToro and their platform, you’ll find more information at InvestinGoal.com. There you will find useful guides and reviews on social trading.

A Look at eToro’s Cryptocurrency

eToro has named its new cryptocurrency Stablecoin. They say that this blockchain enabled crypto-currency is non-speculative. The company says that it is intended to pay social interest. It isn’t clear if Stablecoin is tied to the GoodDollar project. The company’s leadership says that cryptocurrency will allow for the launching of many new cryptocurrency businesses.

By having their own cryptocurrency, people could convert their cryptocurrencies into eToro’s cryptocurrency StableCoin before converting it to a third one. The idea is to use Stablecoin as a means of transferring money at a stable rate. In this regard, the Stablecoin cryptocurrency is not the first “stable” cryptocurrency, though the creators will probably learn from the mistakes of the first stable coins on the market.

Notable issues with the first stable-coins by other firms include an inability to audit them and volatility. The new cryptocurrency by eToro doesn’t yet have a release date. We would expect a cryptocurrency by a transparent social trading platform to have transparency. We’re going to assume they’ve implemented security measures that prevent the hack attacks that destabilized and delegitimized other cryptocurrencies.

The Stablecoin cryptocurrency could be fixed to a conventional approved asset currency like the U.S. dollar or the Euro. And it could be attached to assets like gold or real estate. The company hasn’t provided much information about these potential applications. Other cryptocurrencies are being used to back digital contracts, apps, and monetization of assets. The roll-out of a Stablecoin cryptocurrency by eToro could allow eToro to attract new people to its platform or outright fund its ventures using money flowing into this new cryptocurrency. This doesn’t preclude speculative investment in Stablecoin, but the currency should be more stable than the alternatives because it isn’t intended to be used that way.

eToro’s Accompanying Releases

eToro is not just releasing a new cryptocurrency, Stablecoin. They recently released their own cryptocurrency wallet. That cryptocurrency wallet is already available to users in all EU states, Gibraltar, and Switzerland. This lays the foundation for eToro to facilitate cryptocurrency to cryptocurrency conversions, including cryptocurrency conversions to Stablecoin. It would support social trading between cryptocurrencies while people have the ability to shelter their gains by moving profits from mainstream cryptocurrencies to Stablecoin.

Conclusion

eToro is releasing a cryptocurrency as part of their strategy to support cryptocurrency conversions. There is significant potential for the currency to build a fintech ecosystem or business ventures that eToro can influence.

Author: Zoe Price

About the Author

- Outside contributors to the Dispatch are always welcome to offer their unique voices, contradictory opinions or presentation of information not included on the site.

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