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This year has undoubtedly been a tough one for crypto with the recent Terra disaster playing a big role in establishing the current bear market. For those who may be unaware, the TerraUSD (UST) stablecoin had lost its peg to the United States Dollar (USD), which meant that it was no longer considered a stablecoin and this triggered a massive selloff that ultimately led to a huge crash in the crypto market. Today, both UST and its sister coin LUNA are nowhere near as valuable as they once were.
Still, all is not lost as there are multiple projects trying to improve the market situation, restore trust, and help it along the road to recovery and reach the next bull run. Among these is Wallex, a platform that strives to be a viable alternative encouraging both freedom and creativity.
The importance of EURST
Wallex – an asset and digital asset ecosystem, launched in 2021 EURST – euro stablecoin, a 100% fiat asset-backed Euro stablecoin which is based on Ethereum’s ERC-20 token standard. Essentially, EURST is fully committed to providing a reliable stablecoin for the markets with transparency as a top priority from the beginning. Many crypto investors have lost their faith in the market after the Terra situation, and the introduction of EURST is vital if this confidence is to be rebuilt.
Moreover, EURST was one of the very first stablecoins to adopt a level of third-party live attestation system and transparency. EURST relies on the Ethereum blockchain, live-attestation system, and also a full-reserve model to ensure consumer redeemability. The full cash reserves, held in USD and stored safely in an FDIC insured account, are indicative of Wallex’s forward thinking ability regarding EURST’s formation, and although the market is indeed prone to extreme levels of volatility and unpredictable behavior, EURST has become over-collateralized and more stable over time, as a result of the increase in both the value of USD and the USD to EUR exchange rate, since EURST is…
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