The London Block Exchange (LBX) announced the launch of LBXPeg, a British Pound Sterling-pegged stablecoin. LBXPeg will be tied to the value of GBP which the exchange will hold in an auditable UK bank account on a 1:1 basis.
LBXPeg becomes the last in a line of fiat-pegged altcoins to enter the market in 2018. Joining it will be Tiberius — an asset-backed cryptocurrency that is pegged by physical metals, as well as Mobifinance’s Candy Coin, a Mongolian alt-coin pegged by the national Tugrik currency.
In a report published last week by Blockchain.com, the researchers found that “the number of active stablecoin projects has dramatically increased over the past 12-18 months and more than a dozen project teams have stated they plan to launch in the coming weeks/months.” According to the report, there are over 50 stablecoin projects, with 34 at the pre-launch phase — but that number does not include LBXPeg, which was announced after the publication of the report.
Two Types of Stablecoins
Stablecoins are cryptocurrencies that have in-built price volatility minimization mechanisms. According to the report, stablecoins can be broadly divided into two categories, according to their stability mechanisms — asset-backed, such as Tether, and algo...
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