Stablecoins Can Mitigate Crypto Risk
Plus, an art academy on the blockchain? And, a note about some recent FUD...
There’s no question about it— the financial markets are volatile right now, and crypto is no exception. As I mentioned in a recent newsletter, I have recently taken a more conservative investment stance as uncertainty has increased. Stablecoins are one place where I have found safe haven.
What are these?
Basically, they come in a few major iterations.
USDC COIN: This is a stablecoin that is pegged to the US dollar. The coin is tokenized on the Ethereum blockchain, and on most exchanges, it earns an APY of about .15% right now. Visa allows settlement using this coin.
Tether: Tether is one of the oldest stablecoins on the market, and is sometimes referred to as the “banking currency of crypto.” It works to maintain a value tied to the US dollar, but is considered a controversial coin.
Dai: Dai works to maintain a valuation tied to the dollar by using an automated system of smart contracts on Ethereum. Holding $DAI can also generate a yield of about 2%.
Binance USD: This is a stablecoin used on the Binance smart chain and Binance trading platform.
These are just a few of the major ones. Apart from the yields many of these earn, stablecoins can help investors keep their transaction on the blockchain or crypto exchange, mitigate against instability, and invest some funds for a longer term while feeing up other funds for short term positions.
When building your portfolio, don’t overlook them—they can be a strong leg!
Plus…
Five Questions for the folks at All Art And Dance Academy, which uses Crescendo on Algorand to change the game for students
Q: ACAADA is in Fresno, CA how does it serve that community?
ACAADA: We at ACAADA want to offer classes to kids and adults alike who have a passion for anything related to the Arts. Our purpose for our academy is to bridge the gap between cultures here in Fresno and abroad, by offering different types of classes and workshops to the community, while also hosting a wide range of different physical & virtual events. We do this through the ACAADA pipeline by facilitating and empowering creatives, the individual, to both succeed in their own personal goals as well as the shared goals of the community through individual and collaborative projects and initiatives, and the common banner of the arts and culture; all while teaching others to do the same.
We bring our community together in different settings, be it physical or virtual, by applying that same Individual+Group philosophy and system elsewhere using digital and virtual means which are built on or alongside the blockchain. In this same notion, we are introducing Fresno to the blockchain and its technology.
We prioritize and recognize the arts as a common binding language between cultures and believe we can bridge the gaps within our communities through the empowerment of the creator, by the means of blockchain tenure. We hope to merely act as shepherds and as an ongoing facilitator of change with the hope to produce tangible results that we can continue to reproduce for the long-term.
Q: How do you think the blockchain can be a bridge for up-and-coming artists?
ACCADA: By onboarding local artists and creatives, creating partnerships and empowering the creator with the tools they need to achieve as well as accomplish their own personal goals and projects in the physical world, we are facilitating the ability to bridge that work to the virtual world through the Blockchain. The blockchain not only gives the creator providence but it allows them to do more conventional things like track sales, and collect royalties without the need for an intermediary, all while empowering their pupils to do the same. ACAADA facilitates this interaction and streamlines the process of onboarding creatives to the blockchain by offering hands-on personal training, consulting, and ongoing support.
Q: Why did you choose Algorand and its ASAs like Crescendo?
ACAADA: Simplicity of design, the ease of transactions, and the ability for anyone to quickly learn and participate within the Algorand ecosystem at an extremely attractive entry point was an absolute no brainer.
Although we are aware of and definitely cognizant of Algorand’s ASAs bumpy road thus far, we do believe that when done correctly ASAs like Crescendo can take a lot of the headache out of the creative process that a lot of people don’t think about. Not to mention, some members of the #Algofam have just been an absolute joy to meet and work with in this process.
Q: Will you please describe the Crescendo partnership in greater detail?
ACAADA: Having an ASA like Crescendo step up to the plate and facilitate a large portion of our online transactions and sales, while offering us our own shop on their marketplace to elevate our artists is an absolute game changer for ACAADA. With this partnership we can have Crescendo take away a lot of the headache of managing an online marketplace, while streamlining a portion of the onboarding and creative process for the Academy. We do all of this while still allowing the creator to maintain providence, collect royalties, and by the nature of the blockchain track their art beyond the sale. This enables our creators to focus on fostering different types of community be it physical or virtual, and the most important aspect, the continuance of their pursuit of passion. It allows the academy to focus on continuing to do what we do best: teach, create, and produce talented creators with the skills to create their own brands, businesses, clubs, co-ops, or whatever else they set their mind to; all while being able to teach others how to do the same.
Q: What do you think is the future for NFT’s and other applications built on blockchains?
ACAADA: I mean let's be honest, it's been kind of a mess, but I think that that has to do with the early nature of the space. What we would love to see for the future of NFT's is more backing and support to the smaller creators, and we hope to be that change we want to see in the space. However, With the ongoing commercialization of NFT's, we do worry that small creators could get squeezed out or drowned out by larger corporations or even scammers. In turn, we do worry that due to the early nature of NFT’s a lot of people could fall victim, but at the same time we recognize the decentralized nature of the blockchain and have truly enjoyed seeing the self-regulation that has occurred within the ecosystem. Ultimately, people try to look out for each other, and we think this will only get better over time the more we all become familiarized with blockchain technology and the overwhelming benefits it offers. We hope to be there then and now, with plans to wither “crypto winters”, storms, bulls, and bears.
Finally…
The FUD (fear, uncertainty, and doubt) is here.
It never truly leaves—but crypto naysayers have a new bludgeon they’re using to clobber people who see the promise of cryptocurrency as an investment.
Here are a few of the headlines:
NY POST: How Russia can use cryptocurrency to avoid sanctions over Ukraine
BLOOMBERG: How Russia, Billionaires could use crypto to go around “severe” US sanctions
CNN: Financial sanctions are easier than ever for Russians to evade. Thank Bitcoin.
You get it.
Look, cryptocurrencies are open platforms. Everyone and anyone can use these, and all the transactions are logged into an public ledger. Transactions can be peer-to-peer. That’s all a threat to the traditional financial system.
And because the networks are open and borderless, some of the people on the networks will be bad actors. I wish things were different, but we live in the real world. Evil is around.
For the record, here’s a decent rebuttal for this latest round of FUD:
And on the flipside, crypto is also helping Ukrainians. Check it out:
What can be used for evil can also be used for good. That’s what freedom offers.
The Crypto Connection is for entertainment purposes only and is not meant to be financial advice. Please do your own research before investing in any asset class. Sara Celi is not a financial advisor, and holds several cryptocurrencies. To purchase her books on Amazon, please click here.