A Cosmos-based altcoin project has announced that it will terminate some of its operations, citing harsh bear market conditions.
Altcoin project blamed the current crypto bear market for its decision
Cosmos-based electronic payment system e-Money has stopped issuing euro-backed stablecoin EEUR, citing bear market conditions. The altcoin project has stated that it will stick to EEUR stablecoin payments until March 6. Customers with funds under 100,000 EEUR will be able to close their positions by exchanging their tokens directly on the stablecoin market on Osmosis, the largest decentralized exchange in Cosmos. They will be able to exchange their tokens for USDC or Cosmos-specific cryptos like ATOM and OSMO. E-Money advises users to loosen their positions in small batches to reduce market congestion and price drift.
The announcement added that customers wishing to use amounts greater than 100,000 EEUR can do so directly for Euros. These users will need to go through customer identity checks and the process will take up to five business days.
e-Money stated that closing the stablecoin project was a difficult decision
“Given the current market conditions, this effort has unfortunately reached a stage where it is prudent and responsible to liquidate it,” the project said. Still, he hopes that even though he terminates the EEUR stablecoin, it will continue to work. The project has upgrade plans that will integrate the latest Cosmos features in the first quarter of the year.
Euro-backed stablecoin disabled, company heading towards these areas
According to the Medium post, e-Money will continue to operate its network and its codebase will be made available under a permissive open source license. Blockchain will continue to be secured by the NGM token. Similar to other Proof-of-Stake tokens, NGM can be used to pay transaction fees and secure the network through staking, thereby earning staking rewards. Currently, Blockchain offers advanced features such as:
- Instant payments completed in less than 500 milliseconds
- An on-chain limit order book (DEX) that provides optimal order execution and routing
- Independent asset issuance
- Convenient high-precision inflation module that connects nicely to the asset issue
cryptocoin.comAs you follow, e-Money hoped to continue the success of its EEUR stablecoin into 2022, but the crypto market faced many challenges in 2022, with both centralized and decentralized assets facing challenges. While the company is not directly affected, the stablecoin business relies heavily on integration with traditional finance, and financial institutions’ interest in cryptocurrency waned after the events of 2022.
Additionally, the lack of real-world applications for Blockchain has led to low demand for non-USD stablecoins, and upcoming European MiCA legislation is expected to hinder the scalability of Euro-backed stablecoins and limit business opportunities in the industry. In its current form, European MiCA legislation favors commercial banks as issuers of future Euro stablecoins, undermining innovation in the European Union. As a result, the e-Money team decided to withdraw the EEUR issuance.
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