1 Level
16 Review
25 Karma
Review on Maker by thanh hao
A stablecoin like Dai that doesn’t have huge price fluctuations is necessary…
A stablecoin like Dai that doesn’t have huge price fluctuations is necessary for financial markets since it allows for long-term planning. In simple terms, the MKR token is used to keep the Dai stable against the dollar making users confident of the value. It also serves as a governance token, to give users control over the system and ensure a level of transparency lacking in some systems. Users can vote to contribute to the development of the system.
Pros
- Maker is a cryptocurrency platform on the ethereum blockchain that sells Dai tokens (a stablecoin) and seeks to minimize its volatility. Created in 2015, Maker (MKR) tokens became the first tradeable token on the ethereum network. Unlike the Dai stablecoin which exchanged at the value of one dollar, the MKR is a utility token, governance token and recapitalization resource of the Maker system.
Cons
- When Maker (MKR) peaked close to $1700 in January, it was like announcing to the world that the coin to beat was here. As the month ran down, it began to see major corrections and by early February, it had succumbed to $821. Investors remained undeterred as the coin fluctuated through the first and second going below $500 at some point and above $1100 at another.
