**Interview** | Solum Global CEO Kirk St. Johns on the Power of Stablecoins Amidst Market Volatility | Presented by INS Digital Intelligence

The digital currency market has always been known for its volatility, with prices of leading cryptocurrencies like Bitcoin and Ethereum often swinging wildly. Over the past few days, we’ve witnessed a significant downturn in the crypto market, with Bitcoin and most other major cryptocurrencies plummeting by over 20%. However, amidst this turbulence, one segment of the market has remained resilient: stablecoins. We interviewed a pioneer in the crypto space, CEO of Solum Global, who couldn’t be more pleased with this development. in his opinion, market volatility further reinforces the critical role that stablecoins can play as a safe haven during times like what we saw earlier in the week.

Kirks St. Johns Opinion on the 'Stability of Stablecoins'

"Stablecoins are a unique asset in the cryptocurrency space, designed to maintain a constant value by being pegged to a stable asset, typically the US dollar. Unlike traditional cryptocurrencies that are prone to dramatic price fluctuations, stablecoins like Tether (USDT), USD Coin (USDC), and First Digital USD (FDUSD) remain at $1 USD, regardless of market conditions. This stability makes them an attractive option for investors looking to safeguard their assets when the broader market experiences volatility.

In the past week alone, we’ve seen an impressive surge in stablecoin trading volumes, underscoring their growing importance in the crypto ecosystem. Tether, the largest stablecoin by market capitalization, saw its 24-hour trading volume spike to $173 billion, three times its usual volume. This surge generated significant revenue for Tether, given its transaction fee model of 1/10th of 1%. Even with volume discounts, the revenue generated in the last 24 hours is likely to be substantial.

Similarly, USD Coin (USDC), which is backed by some of the most reputable financial institutions, including BlackRock, Visa, Moneygram, Coinbase, and BNY Mellon, witnessed a trading volume of $22 billion over the past 24 hours. This represents a threefold increase from its typical trading activity, demonstrating the high demand for stablecoins during periods of uncertainty.

First Digital USD (FDUSD), a relatively new entrant in the stablecoin market, also recorded impressive trading volumes. Launched just last year, FDUSD quickly reached a market cap of $1 billion. Over the past 24 hours, its trading volume exceeded $15 billion, again more than three times its usual volume. FDUSD’s rapid growth serves as a testament to the potential of new stablecoin offerings in capturing significant market share."

Kirk St Johns Ambitious Vision for Solum Global

"At Solum Global, we recognize the immense potential of stablecoins in the digital currency market. That’s why we’re excited to announce our plans to manage (Stable coins on our platform which we project to launch in November of 2024 the deployment of a stablecoin through a third-party contract, with a projected corporate launch in November. Our goal is to capture and manage 1% of the current stablecoin market, a target we believe is both ambitious and achievable. Our initial projections estimate that Solum Global?will manage the launch of a foreign entity that has issued?1,000,000,000 stable coins in the 4th quarter of 2024., Each stablecoin will be valued at $1 USD."

The Success Stories of Stablecoins

The success of Tether, USD Coin, and First Digital USD offers valuable lessons for Solum Global as we construct our platform to manage stablecoins.? Tether, which launched in 2014, has grown to become the most widely used stablecoin in the world, with a market capitalization exceeding $83 billion as of August 2024. Tether’s success can be attributed to its first-mover advantage, robust infrastructure, and its ability to maintain a stable value despite market fluctuations.

USD Coin, launched in 2018 by Circle in partnership with Coinbase, has also seen tremendous growth. With a market cap of over $26 billion, USDC has established itself as a trusted and reliable stablecoin, particularly among institutional investors. The backing of major financial institutions has played a crucial role in USDC’s success, providing it with the credibility and stability needed to thrive in a competitive market.

First Digital USD, although newer to the market, has quickly gained traction thanks to its innovative approach and strong backing. Its rapid rise to a $1 billion market cap in just 12 months is a clear indication of the market’s appetite for stablecoins that offer both security and reliability.

Why Are Stablecoins are a Safe Haven?

"During periods of market volatility, investors often seek out safe havens to protect their assets. In traditional finance, assets like gold and government bonds have historically served this purpose. In the digital currency space, stablecoins have emerged as the go-to safe haven, offering a stable store of value that is immune to the wild price swings of other cryptocurrencies.

As I’ve stated before, stablecoins are always pegged to the dollar, ensuring that their value remains constant at $1 USD. This stability makes them an ideal asset for investors looking to park their funds during times of uncertainty. Whether the market is going up or down, stablecoins provide a level of security and peace of mind that is hard to find elsewhere in the crypto space.

This is particularly important in the current environment, where the global economy faces a range of challenges, from inflationary pressures to geopolitical tensions. In such a climate, the ability to preserve wealth and maintain liquidity is paramount. Stablecoins offer a reliable solution to these challenges, providing investors with a stable and accessible asset that can be easily converted into fiat currency if needed." Kirk St Johns - CEO Solum Global

What's The Future of Stablecoins?

"As we look to the future, I believe that stablecoins will continue to play an increasingly important role in the digital currency market. Their ability to provide stability and liquidity makes them an indispensable tool for investors, particularly during times of market turbulence. At Solum Global, we are committed to capitalizing on this trend by providing management services for ? stablecoin issuers that meet the needs of today’s investors.

Our upcoming corporate launch in November marks an exciting new chapter for Solum Global. We are confident that our management practices for stablecoins will quickly gain traction in the market, thanks to our robust infrastructure, strategic partnerships, and a clear focus on providing value to our users. We are entering the market with a strong foundation, backed by a clear vision and a commitment to excellence.

To sum up, the recent market volatility has highlighted the critical role stablecoins play in the digital currency ecosystem. As more investors turn to stablecoins as a safe haven, the demand for these assets will only continue to grow. Solum Global is well-positioned to capitalize on this trend, and we look forward to aggressively marketing our third-party management services agreement within the stablecoin community. As I often say, “Stablecoins are a safe haven, offering security and stability even when markets are volatile.” We are excited about the future and are confident that our stablecoin management division will become a trusted and reliable service provider for stablecoin issuers globally."

Kirk St. Johns CEO, Solum Global

For Information on Solum Globals $3,000,000 Private Placement Contact Derek McCarthy - [email protected] | 216 246 5006