Agora CEO Introduces Four Distinct Classifications for Stablecoins
Key Insights on Stablecoin Classification from Agora CEO Nick van Eck
- Stablecoins are not homogeneous; they have unique characteristics and user profiles.
- Types of stablecoins include:
- Centralized high-trust (e.g., Agora, Circle)
- Centralized opaque (e.g., Tether)
- Centralized captive distribution (e.g., gaming companies, banks)
- Decentralized (e.g., Ethena)
- Agora targets newcomers to crypto rather than seasoned investors seeking returns.
- The goal is to establish a global stablecoin network with AUSD traded across exchanges.
- Current legislation appears unfavorable towards yield-bearing stablecoins, which aligns with Agora’s one-to-one model design.