Stablecoin - News, Opinion & Analysis

Stablecoin

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A stablecoin is a digital token that is pegged to a certain value, usually in a 1:1 ratio with a fiat currency like the US dollar. For example, the USD Coin (USDC) launched by Coinbase is backed by US Dollars in a 1:1 ratio. Most stablecoins in reality deviate from the $1 position ever so slightly, 

Most stablecoins are pegged to a fiat currency, with the US Dollar being a popular choice. However, some stablecoin ventures distinguish themselves by backing their stablecoins with other assets. 

An example of this kind of stablecoin is the well known MakerDAO ecosystem, which is a stablecoin ecosystem that consists of two tokens: the stablecoin DAI and the governance/utility token MKR. The stablecoins are backed by Collateralized Debt Positions which demand Ether as collateral. There is a complex mechanism in place to ensure that the token does not deviate from the $1 value.

Stablecoins have been ascending in popularity in discussion in 2019. This is largely because there is some consensus in the idea that stablecoins are effective in combating the volatility of the market. Since the value of these tokens remain stable, investors who use stablecoins do not have to worry as much about bear markets, and can use these tokens to make investments during these bear markets to gain profit.

As most stablecoins are pegged to fiat currency, there has been scrutiny on the finances of stablecoin issuers, who must confirm that they possess the reserves to back the total value of stablecoins. This increased scrutiny has led to calls for more audits and better transparency.


Uncertainty on Tether - stable coin may be backed by reserves given as loans to large Chinese companies

15 Oct 2021 3 minute read 3 comments Greenchic

Image Source China’s shadow is still on the crypto world indirectly!! One hears a lot of China in the crypto world, what with all that crypto crackdown news that has been creating FUD in the crypto market, leading to dips in prices of Bitcoin. Right,...

Turn your Singapore dollars into USDC with FTX BlockFolio App

14 Oct 2021 3 minute read 1 comment doufu

In this article, I am going to share a method to onboard your Singapore dollars (SGD) into the stable coin USDC with FTX App (formerly known as BlockFolio) I have been using the app BlockFolio to track my crypto earnings before the app was bought ove...

CageChain Newsletter #181 | IMF's Stablecoin Contagion Warning, Stripe's Returning to Crypto, Reese Witherspoon is Exploring NFTs and More...

13 Oct 2021 1 minute read 0 comments KHubbard

The International Monetary Fund believes cryptocurrencies do not yet pose a risk to the global financial system. However, it's concerned about the growing market caps of stablecoins-and how they are backed. U.S. fintech giant Stripe is hiring a new...

SnowSwap - Winter is coming... again!

12 Oct 2021 1 minute read 2 comments PVMihalache

Snow Swap went live in October 2020 with the clear vision to help yield farmers to switch their assets into the highest yielding token at any time, without worrying about withdrawal fees, wrapping and unwrapping, or high gas fees. The project provide...

StableCoin Regulations soon to come

8 Oct 2021 1 minute read 0 comments ga38jem

In this article I will discuss the upcoming stablecoin regulations by the US government. I will talk about expected dates and what they potentially mean for the crypto space. Keep in mind that this article is not financial advise but only for enterta...

NULS Collaborates With OxPay and veriTag to Enable Token Purchases, Develop Stable Tokens.

2 Oct 2021 3 minute read 0 comments NULS

Three parties will develop stable tokens Through the partnership, NULS will build blockchain infrastructure, veriTAG will set up merchant and digital wallet ecosystem, OxPay will be exclusive payments service provider All three parties to collabor...

The Age Of ADA Stable assets on Cardano

2 Oct 2021 3 minute read 4 comments ChildOfTheMany

Over the last couple of months, the Cardano ecosystem has come alive. We have started to see projects of all types and scale being built on the chain; decentralized exchanges, paid subscription service managers, even telecommunications companies, but...

Stablecoins Yield Farming Strategies - A Non Sens Guide

27 Sep 2021 7 minute read 5 comments Crypto Tips 101

Crypto Yield Farming is fun, and stablecoin yield farming is safe. Safety and reliability of income sources are very important for me since I'm on the path to become a crypto digital nomad. That being said, I'm looking for multiple stablecoin yield f...

Djed: New Stablecoin coming to Cardano

27 Sep 2021 3 minute read 1 comment I-HODL

As  much touted "Ethereum killer" Cardano continues on a  slow but steady development path to take down the biggest altcoin by marketcap, it has announced that it will be issuing its own stablecoin, and software development company, COTI, has been id...

How do Rebase Tokens & Stable Tokens Differ?

22 Sep 2021 1 minute read 1 comment Defiant Pathfinder

We are going to look into these 2 Tokens to see how they a different from each other. They are different but they operate in a similar way, so lets get into detail and see how they differ. Rebase Tokens Rebase Tokens are also known as elastic tokens,...