Stablecoins in Crypto market

By Kavi | Kavya | 10 May 2020


 

stablecoin

Crypto market is all about high volatile and probably short term trading . in 2015 , tether (USDT) entered in the market for the purpose to stablise the market with backed USDT which was pegged with US dollar in 1:1 ratio in terms of value. before tether, the market was fully rely upon btc and altcoins pair trading which was not much efficient for trading as when market crashed then both pairing coins loose their value . 

Stable coins basically categorised in four :

1. fiat collateralised stablecoin

2. commodity collateralised stablecoin

3. crypto collateralised stablecoin

4. Non- collateralised stablecoin (which does not backed by anything)

in the crypto market , the importance of stablecoin is huge to steady the price of market .

tether

 

Tether USDT: Tether is most trusted stablecoin in crypto market with the capital hold $8.5 billion . it came to exist in the market from 2015 and from the time it kept hold top 10 rank in coinmarket cap . tether is initially started pegged with US dollar but now it expands to be pegged with Chinese yuan and Euro.

Tether is built on open blockchain technology with complete transparency where the publish their daily reserve value which tally with current tether circulation in market .in security , it provided latest to protect the fund and system of blockchain.

Tether is listed all the major crypto exchanges and is being traded in high volume . the major exchanges where tether is the king in trading pair

  • Bittrex  ( deposit is free but withdrawal fees is average $1.00 )
  • Bitfinex( deposit is free but withdrawal fees is average 0.01% )
  • Binance( deposit is free but withdrawal fees is average $0.01%)
  • Bitpanda ( deposit is free but withdrawal fees is average $0.20 )
  • OKeX   ( deposit is free but withdrawal fees is average $0.20 )

Tether a digital token is basically a  transport protocol follower  means, it can be adopted by any smart contract based coin .when it was launched then it was built upon OMNI where it can be dealt with Bitcoin, Ethereum ,Eos and Tron blockchain but its now also providing Transport on ERC20  which is more convenient and faster to interface with Ethereum smart contract protocol and their Dapps for any transaction on Ethereum address . 

In current scenario , we can see there are many stablecoins has launched on ERC20  .In example,  USD coin (cofounded by coinbase and circle), TrueUSD(known for independent audit in 2018), Paxos Standard (PAX)(launched by Paxos Trust Company approved by New York state department of financial  service )

 

DAI

DAI: It is also stable coin which built upon ethereum  ERC20 and backed by Maker platform . it is not pegged with US dollar . The most unique about this coin is it maintain $1.00 even after not pegging with USD also only users can create and destroy DAI token. 

DAI is the decentralised ,stable coins which allow you to stake DAI to earn in interest . 

DAI withdrawal fees are average in between 1 to 2 DAI in every major exchanges.

 

In Summery, if we look into all the stablecoins which are currently performing well in the market ,are mostly built upon Ethereum blockchain and impacting the market towards stability with value. There are new challenges coming to be faced for all the stable coins if every country crypto regulations been applied and allowed to trade directly from fiat currency which is more cheaper and locally convenient .

 

 

Resources:

https://finance.yahoo.com/news/list-stablecoins-know-110001820.html

https://tether.to/

https://withdrawalfees.com/coins/tether

https://makerdao.com/en/

https://www.asiablockchainreview.com/stablecoin-what-you-need-to-know/

https://coincentral.com/what-is-tether/

https://www.investopedia.com/terms/s/stablecoin.asp

 

 

  

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Kavi
Kavi

Chief mentor of 'skill2up.in' and blogging is my passion.


Kavya
Kavya

Hello everyone i am kavya and i love to travel and writing essay, reports and blog.

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