Analysts turn bullish on ADA as gold-backed stablecoins come to Cardano

Ana Grabundzija · October 2, 2021 at 9:00 pm UTC · 2 min read

During a crypto summit held by British financial newspaper City A.M., decentralized finance (DeFi) liquidity protocol MELD has announced a three-way partnership with Tingo Holdings, Nigeria’s largest mobile network, and Ubuntu Tribe, an ethical crypto company that tokenises natural resources.

As a part of the new partnership, the Cardano-based DeFi protocol, which enables users to lend, borrow and stake their assets, has revealed plans to launch a gold-backed stablecoin.

Cardano’s stablecoins

“Our goal here is simplicity and clarity,” said Ken Olling, chairman and co-founder of MELD, who wants to make trading accessible to anyone with a smartphone. 

“Gold will be stored in a vault, tokenized and then fractionalised and divided so we can sell it,” he clarified.

“It’s a simple idea, but incredibly powerful because you can count on it,” added Olling, pointing to gold’s stable value.

As recently revealed during the Cardano Summit 2021, by none other than Cardano’s founder, Charles Hoskinson, ADA payment gateway platform COTI will become the official issuer of the network’s long-awaited stablecoin Djed, described as an algorithmic token for proven price stability.

COTI is the official issuer of Cardano’s stablecoin!

As just revealed during the @CardanoStiftung summit by none other than Charles Hoskinson, COTI will become the official Djed issuer, Cardano's new stablecoin!

Read more: https://t.co/omAxVZUOow$COTI $ADA @IOHK_Charles pic.twitter.com/yschC9wdbd

— COTI (@COTInetwork) September 26, 2021

According to the Cardano developer team, IOHK, Djed’s features, which include upper and lower bound maintenance, robust design in the event of market crashes, no insolvency, and no reserve drain possible, are provable by mathematical theorem.

Boosted adoption

According to the head of marketing at Cardano Foundation, David Taylor, who shared the announcement on Twitter, the new partnership with Nigeria’s largest mobile network will introduce MELD’s crypto services to millions of active subscribers, boosting Cardano’s adoption in the country, 

Announcement from @MELD_labs and Tingo Mobile looking to bring 9m customers across Nigeria to Cardano.

As part of this partnership, there will also be a gold-backed stable coin to the protocol.#CityAMSummit @CityAM_Crypto #Cardano #CardanoCommunity @tingomobileng #Blockchain pic.twitter.com/G6zqggzBLF

— DT (@I_Am_DTaylor) September 30, 2021

Following the latest developments in the ecosystem, the number of ADA holders reached a new all-time high (ATH) recently.

Cardano’s native token has 243,000 holders, with 70% of the wallet addresses holding the crypto recording profits, IntoTheBlock’s data revealed.

The number of $ADA Hodlers reached a new ATH this month of 243 thousand addresses holding an aggregated volume of 5.49b ADA.

And at the current price, over 70% of the addresses currently holding ADA are in a state of profithttps://t.co/8ME8STegu5 pic.twitter.com/MnghWKB66X

— IntoTheBlock (@intotheblock) September 27, 2021