With the advent of investments in crypto, it seems that many different companies are trying to build stable-coins.
Types of stable-coins -
Stable coin backed by dollars in bank: Tether, TrueUSD etc.
Crypto collateralised: DAI, Basis (for arguments sake lets assume its still active)
There are other types too, however lets keep our discussion limited to these models.
Lets assume these companies/tokens solve the aim of pegging themselves to a dollar. So, they have demand from investors in many different crypto exchanges as there are not many exchanges with Fiat on-ramps.
Now, how do these stable-coin companies make money? Basis raised > $100 million - why are VCs interested in investing in stable-coin companies?
Facebook also seems to be getting into stable coin based remittances. How does that work out? Will they charge people money to transfer money on WhatsApp? Don’t they already have a free feature for payments on the Messenger app?
Wanted your thoughts on both these questions. If someone has friends in Facebook, or any idea about it, this will make an interesting discussion.