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Binance-Listed Altcoin Launches Major New Product

Ethena, one of the fastest-growing decentralized finance (DeFi) platforms of 2024, today announced the launch of its new stablecoin, USDtb. According to the developers, this stablecoin is designed to complement the protocol’s platform’s native stablecoin, the USDe token, and balance its performance in bearish crypto market conditions. USDtb is pegged to the US dollar and holds 90% of its reserves in BUIDL, a tokenized money market fund issued by asset management giant BlackRock in partnership with Securitize. Ethena founder Guy Young highlighted the innovation behind USDtb, saying: “Given the rapidly growing demand for different stablecoin options, we saw a clear opportunity to offer users a new product that offered a completely different risk profile to USDe without them having to leave our trusted ecosystem.” Related News: BREAKING: Coinbase Announces New Altcoin Listing During Massive Bull Rally Ethena has attracted nearly $6 billion in user funding since going public earlier this year. The company’s native token, USDe, maintains its $1 price by implementing what it describes as a unique investment strategy: shorting perpetual swaps on Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) while increasing funding rates. This approach has yielded impressive returns during bull markets (currently 27% annually), but has struggled in bearish conditions due to persistently negative funding rates. To address these risks, USDtb will serve as a balancing mechanism. During periods when funding rates are negative, Ethena will close underlying derivative positions in USDe and redirect assets to USDtb to mitigate losses. The team also plans to position USDtb as collateral for margin trading on centralized exchanges in the future. *This is not investment advice. Continue Reading: Binance-Listed Altcoin Launches Major New Product Crypto Briefing

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Ripple CTO David Schwartz Warns Against RLUSD FOMO Amid Launch Speculation

The stablecoin market has experienced remarkable growth in 2024, driven by rising cryptocurrency adoption and a surge in institutional participation. All eyes are now on Ripple’s newly approved stablecoin, Ripple USD, a.k.a. RLUSD. But Ripple’s Chief Technology Officer, David Schwartz, addressed concerns over potential price anomalies for the asset as it prepares to launch. Speculative Hype Around RLUSD Unnecessary In a detailed statement on X, Schwartz explained that while Ripple USD (RLUSD) is designed to maintain a stable $1 peg, there could be temporary price fluctuations due to supply shortages during the initial launch phase. His comments were prompted by reports of RLUSD displaying an exorbitant price of $1,200 per unit on the Xaman trading platform, which stirred concerns within the crypto community. Schwartz clarified that such inflated prices likely stem from speculative behavior or individuals seeking the “honor” of acquiring the first fraction of RLUSD on decentralized exchanges. However, he stated that these aberrations are unsustainable and will likely be corrected quickly by arbitrage activities, restoring the stablecoin to its intended $1 value. The exec urged potential buyers to avoid succumbing to FOMO’s warning that RLUSD is not a speculative opportunity but a tool for stability in cross-border payments. He stressed that the essence of a stablecoin is price stability, and any deviations from the peg, especially at launch, should not be misinterpreted as lasting trends. “Please don’t FOMO into a stablecoin! This is not an opportunity to get rich.” Last week, Ripple CEO Brad Garlinghouse announced that RLUSD received final approval from the New York Department of Financial Services (NYDFS) and would soon debut, primarily targeting institutional players. RLUSD will play a crucial role in Ripple’s cross-border payment solutions, working alongside XRP to enhance liquidity and efficiency for global transactions. New Players in Stablecoin Space With a total market value of $211 billion, the stablecoin market is rapidly expanding as adoption grows. The San Francisco-based company is entering a space dominated by Tether’s USDT and Circle’s USDC, which have market caps exceeding $140 billion and $42 billion, respectively, according to CoinGecko. Ripple, however, sees an opportunity in the competition as it looks to position itself as a credible player capable of carving out market share. Schwartz, for one, had earlier predicted the stablecoin sector could exceed $2 trillion in value by 2028. The market’s potential has also attracted major fintech players like PayPal and Robinhood . The post Ripple CTO David Schwartz Warns Against RLUSD FOMO Amid Launch Speculation appeared first on CryptoPotato . Crypto Briefing