Well it didn’t take long for Elon Musk to be headline news again! If it’s not Twitter, it’s PayPal, this time shaking up the crypto market with the launch of its brand new Ethereum-based stablecoin – PayPal USD.
A stablecoin is a type of cryptocurrency, only it is tied to a reserve, such as the US dollar, which helps to keep its crypto value “stable.” In other words, it combines the benefits of digital currency with the stability of traditional currency. On the market PayPal USD can be identified with the ticker PYUSD.
The token can be redeemed for U.S. dollars at any time, and can also be used to buy and sell the other cryptocurrencies PayPal offers on its platform, including bitcoin.
This is BIG news because as consumer demand for crypto grows, it means traditional companies like PayPal are positioning themselves to stay ahead of the curve. That of course, should be music to the ears of all investors – and with that in mind, PayPal’s share price rose 2.66% as a result.
Talking of headlines, Ethereum features for a second time this week at the centre of another ground-breaking launch – ‘Base’, which is a new layer-two Ethereum solution developed by Coinbase.
The aim of ‘Base’ is to offer increased efficiency, reduced costs, while opening up new horizons. It in effect signifies a new era in crypto, with Ether powering transaction processing in the new platform.
Again, this launch is expected to get crypto investors very excited.
Headline #3… wow, it’s Ethereum again with the news that Bloomberg analysts have given a big thumbs up to the 75% possibility of an Ethereum futures ETF (Exchange-Traded Fund) receiving the go-ahead in the US sometime this year, possibly October.
Exchange-traded funds, or ETFs, are a bit like a basket of investment goodies. In other words, you could be buying and selling Ethereum ETFs just like you’d trade any other stock or bond, directly from your brokerage account.
For both seasoned investors, and newbies, not sure still whether cryptos can be trusted as an investment vehicle, these three pieces of news should lay those fears to rest.
To help you find out if cryptos are for you, try using our Price Cost Averaging (PCA) calculator to help you determine the right amount to invest and the best frequency to do so, ensuring you stay on track to reach your financial goals.
For more on these breath-taking investor developments, check out this week’s Trades of the Week.