Exco.in, the real-time altcoin exchange developed and run by Blackwave Labs, has opened its first NuBits (NBT) trading market, allowing users to trade bitcoin against a United States dollar pegged crypto-currency.
NuBits uses trading bots operating across all known exchanges to effectively ‘peg’ the price of 1 NuBit at $1 USD. This means that users get all of the advantages of a crypto-currency with all the stability and security of a major fiat currency. In addition to maintaining this peg, NuBits trading bots will also provide liquidity to the new market on Excoin.
The main advantage of a digital currency which is pegged to fiat like this is that it will offer traders a convenient way to sell up their crypto-currency holdings for the safety of fiat during a declining market. Ordinarily a trader would have to choose between trusting an exchange with their fiat balance (risky) or going through the time and expense of withdrawing to the legacy banking system to do this. NuBits offers a third alternative which is quicker, cheaper and cryptographically secured.
Since most Bitcoin users are familiar with the currency’s price in USD, Excoin will price Bitcoin in NuBits / USD rather than the other way around. According to a post published on the Blackwave Labs blog on 28th December, additional markets pairing NBT against the other altcoins traded on the site, such as Blackcoin and Peercoin, will be rolled out ‘soon’.
Blackwave Labs are the development team behind Blackcoin, and the Excoin exchange was initially launched to provide a way for users to trade Blackcoin directly against other ‘innovative altcoins’ without having to go through Bitcoin. Since its launch, however, the exchange has expanded to offer a market for Bitcoin currency pairs and now a third market for NuBits.