In a definitive response to swirling rumors regarding the possible discontinuation of the Djed stablecoin, Charles Hoskinson, founder of Cardano, firmly stated that not only will the project continue, but it will also receive a significant upgrade. “No, we aren’t dropping Djed. We are supercharging the team,” he announced.
Cardano Developer IOG Doubles Down On Djed
Djed, an overcollateralized stablecoin by Input Output Global (IOG) and COTI has been under scrutiny due to its unique financial mechanism recently. Specifically, the stablecoin uses Cardano’s ADA token as a reserve, aiming to maintain a circulating supply backed by four times the number of its outstanding coins.
While designed to provide enhanced security and stability for its users, recent metrics indicated the reserves had decreased to 356%, prompting a temporary suspension of minting new Djed tokens.
In the midst of this, IOG issued a series of statements indicating structural changes and expansions. Hoskinson tweeted about the addition of Sean Ford, noting, “Glad to welcome my good friend Sean Ford to the IOG family.” This was in conjunction with IOG’s formal announcement, detailing the appointment of Sean Ford as CEO and David Markley as COO of a newly formed subsidiary concentrating on the stablecoin sector.
Ford’s credentials in the technology sector are quite noteworthy, having been part of the founding team at Algorand where he served in both COO and CEO capacities. Additionally, David Markley, before joining IOG, was deeply entrenched in Algorand’s Operations, Venture, and Business Solutions teams.
Articulating his vision for the evolving stablecoin sector, Ford stated, “The stablecoin space is rapidly evolving as the next frontier in digital asset payments, settlement, and innovation. I am excited to engage with the IOG team and the broader blockchain, stablecoin, and crypto community as we work collectively to create and launch the next generation of stable assets.”
Hoskinson, reflecting on his long-standing involvement in the field, emphasized the necessity of stablecoins for the blockchain industry. Drawing attention to his work from BitShares to Djed, he said, “The blockchain industry needs stablecoins to realize its mission and fully protect its values. I’m incredibly proud to welcome my friend Sean Ford to lead a new venture to develop stablecoins and other payment solutions alongside their supporting ecosystems.”
These developments suggest a recalibration of the Djed project under new leadership. With firm support from the Cardano ecosystem, Djed could make a new attempt to conquer a part of the huge stablecoin market in the crypto sector.
ADA Breaks The Downtrend
Last Saturday, the ADA price managed to break above a descending trend line that has its origin in mid-April, when ADA reached its high for the year at $0.463. Since then, ADA has been in a downtrend, which may now be coming to an end, as discussed in our latest analysis.
The Cardano price has recaptured the 0.236 Fibonacci retracement level on the 1-day chart and is now close to the extremely important 200-day EMA at $0.298.
Featured image from Cardano Forum, chart from TradingView.com