Carbon Money Leaves EOS And The Entire Stablecoin Space

Carbon money announced earlier today that it will be leaving the stablecoin space and the team would mostly focus on a ‘’better-performing credit/debit card on-ramp’’ so let’s find out more in our EOS news today.

Many from the EOS community were caught off guard by this decision. Carbon Money got into the crypto business in 2018 via its algorithmic stablecoin pegged to the US dollar and was made up of Hashgraph, Uber employees and Consensys with the goal to provide a solution to the volatile crypto markets. The stablecoin kept the peg based on the demand on the market according to the latest announcement from April 2018 and in the times of contraction and outpacing the demand, the market participants who removed their coins from circulation were later awarded new coins when the supply was added back into the system.

CarbonUSD was also one of the first projects in the crypto space to leverage Hashgraph’s ‘’blockchain alternative’’ technology and the latest announcement only confirms that Carbon will not be working anymore on the stablecoin product. The project’s site informed the users that the project was halted because of the ‘’profitability and developer capacity problems.’’ The CTO of the platform Dan Shiferaw explained the news via Telegram and stated that the company will no longer be able to make stablecoin deposits. He explained that the credit’debit card onramp was performing much better and that the company only wanted to focus on the product team.

The users that hold CUSD can burn any of their holdings via the Carbon dashboard. Carbon will focus mostly on building out its onramp and Shiferaw wrote on the Telegram post that the company will ‘’integrate new tokens, get new partners live and US support.’’ Although the pivot came as a surprise to many, the CEO of Carbon, Sam Trautwein indicated that the project was only an enabler of a different objective and he said:

 “Generally we’ve been working on payments for about a year now. The main reason we rolled out fiat-backed stablecoins was to provide an easy way to onramp into specific ecosystems over ACH using Plaid.”

Trautwein added that the platform wants to make on-boarding to crypto and they aim to achieve this via its service called Fiber. Two days before the team announced the departure; the EOS team started reporting the withdrawal issues. Soon after, Carbon announced to be ‘’ deprecating our CUSD stablecoins on EOS.’’