There are now hundreds of cryptoasset exchanges, and the number is growing. Exchanges vary wildly across a gamut of metrics, like order types, KYC/AML regimes, public incorporation, and general trading experience to name only a few. Some seem institutional-grade (because they are), whereas others seem like they were coded up in a garage (because they probably were).
And while the exchange highlighted in this article does fall within this multidimensional range of qualities, one unique dimension sets it apart. As the name implies, StableCoinsEx.com trades only two types of cryptoasset: Bitcoin, and stablecoins.
The idea seems obvious and inevitable, but nobody else has yet done it. The clear, indeed the only possible objective of such an exchange is to facilitate a sort of arbitrage between different stablecoins, in order to profit from deviations in their prices.
Arbitrage deals with market inefficiencies: when an asset’s price is different on different exchanges, it can be bought and resold, or vice versa, on the respective exchanges for a profit. It is thus a very particular form of trading.
But here, we are not exactly trading the same asset, U.S. dollars, but rather different cryptocurrency representations of those dollars. Therefore, what we are dealing with on StableCoinsEx.com is perhaps a bit of pseudo-arbitrage - and on a single exchange, rather than many.
This is a market that could potentially be very interesting, as the eclectic array of different kinds of stablecoins - audited; not audited; low liquidity; asset-backed; algorithmic; oracled; coins like tether (with their complications); can be very different methods of achieving the same goal. Therefore, we might anticipate, and have indeed seen considerable fluctuations in the prices of specific stablecoins.
In brief, assuming all is well with a stablecoin, it is more or less a case of typical arbitrage. But owing to the nascent quality of the cryptoasset industry, things are often not well in the realm of stablecoins, and trading opportunities do occur. This is what makes StablecoinsEx.com interesting.
Getting started on StablecoinsEx.com is quite easy. Email, name, and country of residence are the only necessary pieces of information required, and Google 2FA is also required upon setup.
The exchange is registered in Estonia, and only a very puny amount of funds can be withdrawn - $1,000 worth per month - before KYC/AML identity checks come into play, so this is essentially required.
The aesthetics and feel are very clean and fast, well in line with the general trend of improving user experiences on exchanges these days.
As far as order types go, the basic three - limit, market, and stop-loss - are all present, filling out the minimum requirements for a decent exchange. TradingView chart integration is present, and non-adjustable panes clearly and neatly display the typical order book info. The theme is in the dark-mode style, and unfortunately there is no toggle for light-mode.
One thing that is, so far, sorely lacking on StablecoinsEx.com is an API interface. Among all kinds of assets to trade, trading stablecoins between each other seems perhaps the most suited for high speed algorithmic or bot trading, which could perhaps be programmed to capitalize on fast deviations from the peg
One other notable absence on this promising exchange is the lack of the DAI stablecoin. DAI is pretty much the only popular algorithmic stablecoin (for now), which is backed not by fiat or traditional assets but rather by Ether tokens. DAI is thus a stablecoin more or less removed from the traditional financial system, and in this sense much more decentralized.
In fact, all of the stablecoins up for sale on StablecoinsEx.com fall squarely into the “asset-backed non-algorithmic” category. These assets, whether or not they are audited by legally recognized entities, are meant to be backed by dollars held in a one-to-one reserve for each cryptographic asset issued.
Here, StablecoinsEx.com seem to have picked a camp. Asset-backed stablecoins are necessarily much closer to traditional legal systems and regimes, which some entities in the crypto world will gravitate toward - and some will avoid.
At time of writing, there is next to no liquidity on the exchange, it being brand new. But as the stable of stablecoins grows ever larger - a trend doubtful to change - who knows what opportunity might be found on StablecoinsEx.com.