Cardano Founder Debunks Rumors Of Stablecoin Djed’s Shutdown
25 Octubre 2023 - 10:00AM
NEWSBTC
In a definitive response to swirling rumors regarding the possible
discontinuation of the Djed stablecoin, Charles Hoskinson, founder
of Cardano, firmly stated that not only will the project continue,
but it will also receive a significant upgrade. “No, we aren’t
dropping Djed. We are supercharging the team,” he announced.
Cardano Developer IOG Doubles Down On Djed Djed, an
overcollateralized stablecoin by Input Output Global (IOG) and COTI
has been under scrutiny due to its unique financial mechanism
recently. Specifically, the stablecoin uses Cardano’s ADA token as
a reserve, aiming to maintain a circulating supply backed by four
times the number of its outstanding coins. While designed to
provide enhanced security and stability for its users, recent
metrics indicated the reserves had decreased to 356%, prompting a
temporary suspension of minting new Djed tokens. Related Reading:
Cardano Passes Crucial Update As ADA Price Prepares For 65% Rally
In the midst of this, IOG issued a series of statements indicating
structural changes and expansions. Hoskinson tweeted about the
addition of Sean Ford, noting, “Glad to welcome my good friend Sean
Ford to the IOG family.” This was in conjunction with IOG’s formal
announcement, detailing the appointment of Sean Ford as CEO and
David Markley as COO of a newly formed subsidiary concentrating on
the stablecoin sector. Ford’s credentials in the technology sector
are quite noteworthy, having been part of the founding team at
Algorand where he served in both COO and CEO capacities.
Additionally, David Markley, before joining IOG, was deeply
entrenched in Algorand’s Operations, Venture, and Business
Solutions teams. Articulating his vision for the evolving
stablecoin sector, Ford stated, “The stablecoin space is rapidly
evolving as the next frontier in digital asset payments,
settlement, and innovation. I am excited to engage with the IOG
team and the broader blockchain, stablecoin, and crypto community
as we work collectively to create and launch the next generation of
stable assets.” Related Reading: Crypto Analyst Lists Reasons Why
Cardano (ADA) Will Not Do Well In The Bull Market Hoskinson,
reflecting on his long-standing involvement in the field,
emphasized the necessity of stablecoins for the blockchain
industry. Drawing attention to his work from BitShares to Djed, he
said, “The blockchain industry needs stablecoins to realize its
mission and fully protect its values. I’m incredibly proud to
welcome my friend Sean Ford to lead a new venture to develop
stablecoins and other payment solutions alongside their supporting
ecosystems.” These developments suggest a recalibration of the Djed
project under new leadership. With firm support from the Cardano
ecosystem, Djed could make a new attempt to conquer a part of the
huge stablecoin market in the crypto sector. ADA Breaks The
Downtrend Last Saturday, the ADA price managed to break above a
descending trend line that has its origin in mid-April, when ADA
reached its high for the year at $0.463. Since then, ADA has been
in a downtrend, which may now be coming to an end,
as discussed in our latest analysis. The Cardano price has
recaptured the 0.236 Fibonacci retracement level on the 1-day chart
and is now close to the extremely important 200-day EMA at $0.298.
Featured image from Cardano Forum, chart from TradingView.com
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