Business Daily Media
Business Marketing

Capricorn Redefines the Stablecoin Market Rules, Enters Partnership with MQ Technology

KUALA LUMPUR, MALAYSIA - Media OutReach - 31 May 2022 - Capricorn, a multi-asset-backed stablecoin protocol for blockchain projects, has received investment from Malaysian listed company MQ Technology (listing number: 635804-H) at a valuation of US$200 million.

On the 28th of May, Capricorn host an offline meetup in Viva Shopping Mall in a topic of the collapse of UST and Depg of USDT to discuss the challenge and opportunities of stablecoin. Capricorn officially signed partnership agreement with MQ Technology during the event.

Deto Nick Ng, Chairman of CEA, attended the event and address the opening. “Since the debut of Blockchain, we have been witnessing the change and infinity opportunity of this cutting-edge technology. The stablecoin, especially, has been widely discussed within the commercial sector on how it can empower the traditional industry.”

“We, Capricorn protocol, are adopting a more convenient way by providing more convenient channels for enterprise financing in an efficient and safer way and integrate with the diversified assets using blockchain technology to fill in the gap.” Responded by Bryan Teh, CEO of Capricorn.

During the meetup, Capricorn and MQ Technology have intimated their intend to work together to maximise the benefits for mutual interests in setting up a strategic partnership and to provide the foundation and structure to accelerate vital progress in their industries.

During the panel discussion, Capricorn had a lively discussion with the guests on the recent events on the stablecoin market. The following are some of Capricorn's views:

It now appears that the continuous blood loss of Anchor, Terra's important fixed benefit savings protocol, is a harbinger of UST collapse.

The reason why LUNA can grow to the current scale is largely due to the fixed savings rate agreement, Anchor, in its ecology, which provides UST with a fixed annualized income of about 20%, flooding millions of dollars in every day. However, these millions of dollars mainly come from the subsidy of the project and the capital behind it, which is actually continuous blood loss. Also because of this, in order to stabilize people's expectations, the project announced the purchase of $3 billion in bitcoin at the end of the month, which further aggravated the instability.

The use of BTC as a reserve destroys the reflexivity of the Terra system, which means that the market has added 3 billion UST circulation at the same time. This huge amount of UST value is tied to BTC. With the bear market causing BTC prices to drop, its support to 3 billion UST lost, leaving the system insolvent. As a result, UST had a slight de-anchor at the beginning, and the continued decline of the market intensified the run on UST, triggering a chain reaction.

It can be said that Terra has been lying in the grave since the moment the market value of LUNA fell below the total market value of UST on May 9.

For the impact triggered by this event, Capricorn believes there are two aspects.

Further prove the concept of the development of collateralized stablecoins

Users are smarter when choosing stablecoin assets or stablecoin projects. Capricorn believes that this is a good opportunity for stablecoins like collateral. Through the mechanism design of Capricorn, the company can ensure that CUSD is backed by sufficient collateral with actual value, so as to build users' confidence in CUSD. A reasonable mechanism, sufficient collateral, and user confidence are the most important moats for any stablecoin project. On this basis, with the development of Capricorn, CUSD will have better credit, the assets behind CUSD will have higher capital utilization efficiency, and the funds participating in Capricorn will get higher returns.

Supervision

This turmoil will inevitably attract regulatory attention, although it will not come so soon. Regulation will raise the entry threshold of the stablecoin industry, and put forward higher requirements on the team's ability to comply with regulations. This is precisely the opportunity for the Capricorn team. The team has rich experience in the banking industry and members who are familiar with financial and legal affairs, and have strong compliance capabilities. It can be said that Capricornis well prepared for the development of stablecoins in the next stage of the regulatory environment.

The Challenges and Opportunities of the Stablecoin Market

First of all, to drive blockchain asset to the mainstream market, a stable currency is needed for the transactions and payments. Although Bitcoin and Ethereum are convenient in terms of transfer payments, the fees are also cheaper, and they can lead to the world, but for ordinary users, a major problem is that Bitcoin is too volatile for asset preservation. It is not convenient to use the payment scene.

“At the same time, with the rapid growth of the scale of blockchain assets and the number of users, the market demand for stablecoins has also been becoming larger and larger. According to the data from Coinmarketcap. The current total market value of virtual currencies is about 1.2 trillion US dollars, and it will continue to grow in the future, which ensures the expansion of stable currency demand. Considering that the market value of real-world economies is hundreds of times that of virtual currencies, even if a small part of these assets are converted into blockchain assets, it will bring a further huge increase in the demand for stablecoins.”said Vincent Cheung from Bitbox, ”If Bitcoin opened the era of encryption, and stablecoins will be pushed to the prosperity of encryption, and this prosperity will also include today's huge real-world assets, which is a true value Internet revolution.”

“Of course, everything is not easy. It takes time to happen. During this period, we will face many challenges. For example, the market needs time to verify the mechanism of Capricorn, build confidence in Capricorn, and higher Barriers to entry, stricter regulation.” Said Bryan Teh from Capricorn, “but even with all the visible and unseen difficulties of the track, someone has to start the race. In the past few years, we have seen the rise and widespread use of stablecoins such as USDT, USDC, DAI, and FRAX, and we have also seen players such as UST, AMPL, BASIS, and ESD who have fallen on this path. With so many successful experiences or failures for us to learn from, and the advantages of our team's experience and resources in the fields of finance, law, and compliance, I believe that Capricorn can successfully occupy a place in this track.”

Under the COVID-19 epidemic, the vulnerability of enterprises is further revealed, facing of shortage of funds, encountering the problem of high financing threshold. After completing all the credit assessment processes, the time for financing applications is too long that the enterprises are often unable to get immediate help.” Said Terrence Cheah, Executive Director of MQ Technology, “the partnership with Capricorn definitely offers us more choice by using its lending protocol, which takes the traditional financial assets on the chain as value support and operation medium through NFT technology and giving full play to its own advantages and empower traditional businesses.”

“This is a new era for our generation, same as the internet era. We are glad to see a wide discussion on the blockchainization are raised among the general public.” Said Vincent from Bitbox, “as an blockchain incubator rooted in Malaysia, we are making every effort to make every possible happened."

#Capricorn

News from Asia

Vietnam's Largest Real Estate Developer Unveils Vision for a Global Wellbeing Destination

HANOI, VIETNAM - Media OutReach Newswire - 27 February 2024 - Vinhomes, Vietnam's leading real estate developer, unveiled its groundbreaking vision for Ocean City, a 1,200-hectare mega-complex env...

Sunlight Real Estate Investment Trust ("Sunlight REIT") Interim Results for the Six Months Ended 31 December 2023

HONG KONG SAR - Media OutReach Newswire - 27 February 2024 - Henderson Sunlight Asset Management Limited (the "Manager") announces the interim results of Sunlight REIT for the six months ended 31 ...

VinFast wins double awards at Indonesia International Motor Show 2024

JAKARTA, INDONESIA - Media OutReach Newswire - 27 February 2024 - At the 2024 Indonesia International Motor Show (IIMS), VinFast was awarded two prestigious honors: "Favorite SEA Premier Launch" a...

Hinen Supports Mitcham Solar Bulk Buy to Drive Green Transformation in Australia

MITCHAM, AUSTRALIA - EQS Newswire - 28 February 2024 - Community Renewables program is a crucial initiative for creating a sustainable future. To better implement this plan, Mitcham City Council pa...

National Anti-Corruption Commission Thailand Exposes More Than 1,500 Instances of Corruption Through Proactive Investigations

BANGKOK, THAILAND - Media OutReach Newswire - 28 February 2024 - The Office of the National Anti-Corruption Commission (NACC) is steadfast in its role as Thailand's principal agency for corruptio...

OVOLO Goes Global With SLH

Ovolo Hotels signs strategic brand alliance with Small Luxury Hotels of the World LONDON, UK - Media OutReach Newswire - 28 February 2024 - In a landmark partnership poised to elevate Ovolo Hotels...

Media OutReach Newswire Launches USA Press Release Distribution Network

HONG KONG SAR - Media OutReach Newswire - 28 February 2024 - Media OutReach Newswire, Asia's first global newswire, has launched its own press release distribution network for the USA market...

Take control of emotions: an Octa guide to trading psychology

Learn about the five most common emotions associated with trading in the financial markets and how to overcome them. KUALA LUMPUR, MALAYSIA - Media OutReach Newswire - 28 February 2024 - Trading p...

Calling All Global Innovators: Keep Up with the Golden Era of I&T

HKSTP heads to LEAP 2024 to fuel the Saudi and Middle East tech boom and spark collaboration between fast-rising global innovation forces amidst new phase of Belt and Road Initiative ...

BingX Launches Ethereum Layer 2, Bitcoin Layer 2, and Web3 Game Token Airdrop Guide for 2024

BingX QA, known for its innovative approach to cryptocurrency research, has unveiled the 2024 Airdrop Guide featuring Ethereum Layer 2, Bitcoin Layer 2, and Web3 Game tokens SINGAPORE - Media OutR...

Popular

Coviu recognised as a Rising Star in the 2020 Deloitte Technology Fast 50 Australia Awards

Australia's leading telehealth solution, Coviu, has been recognised as a company to watch in Deloitte’s Technology Fast 50 Awards for 2020, placing second in the Rising Star category of the prestigious awards.   Coviu se...

Andrew Winter joins Compare the Market

Opportunity knocks for Andrew Winter as Compare the Market’s new in-house expert Property guru Andrew Winter has become the latest voice to join Compare the Market’s team of experts, to help people take control of their mort...

Make your professional voyage carefree with the BlueParrott M300-XT

Today, BlueParrott, a leader in wireless headset technology (part of GN Audio, which also owns Jabra), launches the new M300-XT noise-cancelling Bluetooth headset – engineered to keep you connected on the go. Working out and...

Virtual Office