This is an interesting development that is needed in the Bitcoin world. Exchange rate stability is often subverted by market manipulation from large-scale arbitrage. Moreover, with hundreds of altcoins in circulation on the same exchanges, it is difficult to stabilize BTC when these same altcoins generate automatic trades into and out of BTC, causing stability issues to arise in BTC valuations.
Unlike securities trading, crypto trading has direct market value impact as trades occur among the hundreds of altcoins in the markets. Dollar values are not impacted on the same level, due to the quantities of dollars in circulation globally (in reference to securities trading). Stabilizing BTC against the radical trading volumes of other cryptos is an uphill battle that will not be easily won. It will only occur when most altcoins cease to exist, mitigating pressures on BTC values. There is need for special use altcoins, with real direct application and purpose, to displace those, presently in the markets, with no direct application, by economic definition.
Edit: Here is an interesting part, which just shows how haphazardly developed Paybase and the Paycoin exchange were.
"The plan is to launch early in 2015 (contingent on getting the necessary regulatory approvals), and they say they fully “expect to be targeted” after Gemini opens its doors — but also that they are “learning from mistakes of the past.”
How GAW failed in so many ways, was purely from a complete lack of due diligence and research.