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.


Holding Tether(USDT) is a Very Bad Idea, Here's Why

7 Aug 2021 7 minute read 0 comments Lukros76

A thing I was very curious about when I was starting off with crypto was the use of stablecoins, as they just seemed like digital fiat. Over time I understood it more and more and saw it's usefulness especially when keeping fiat on exchanges as well...

Sperax Play Multi-asset Wallet - Earn XP Everyday Which In The Future You Can Convert To SPA, That You Can collaterize And Mint USDs

4 Aug 2021 4 minute read 0 comments ralleeee12

Sperax Play - Multi-asset Wallet With Unique Advantages     Sperax Play a multi-asset wallet on you mobile the app exists on both Google Play and App Store. The wallet is non-custodial so you hold the private keys for it and will be the only one with...

Unpopular Ideas Ep.2 - Slow but Steady Delists of USDT Loading...

29 Jul 2021 2 minute read 2 comments idiosyncratic

Tether (USDT) has been the leading stable coin in crypto ecosystem. Since the birth of the concept of stable coin, immense discussions took place among people over the necessity or credibility of stable coins. Source It did not take too long to ackno...

#SatoshisSaturday: 2021-07-24

24 Jul 2021 2 minute read 0 comments LoonyLiberal

DISCLAIMER 1: The links to the crypto sites in this article are affiliate links. Furthermore, I use shorte.st to shorten hyperlinks. I get a few cents when users click the links, and I get rewarded if users register using these links. However, my per...

Tether has announced a Euro stablecoin

24 Jul 2021 1 minute read 4 comments Clemnms51

Cryptocurrencies are not all volatile. Yes, many people are entering in this market in order to make money fast by gambling on various tokens. However, when people have managed to double or triple their investment, or if they want to stop their losse...

OmniBonds - A Novel Stablecoin Peg-Support: More Sophisticated than a Lottery with ZERO LOSERS

23 Jul 2021 3 minute read 1 comment Logan F

  OmniBonds is a unique support system designed to assist in maintaining the dollar peg for the USDO stablecoin. (pardon the strange formatting) This program is intended to run for a limited time, and will reward all participants with the opportunit...

What you need to know about Tether/USDT in 2021: A Discussion With Frances Coppola

22 Jul 2021 1 minute read 0 comments Altcoin Edge (Brokenomix) Youtube

In this video we chat to former banker, economist, author and all around lovely lady, Frances Coppola ( @frances_coppola )!We discuss the issues surrounding Tether's asset portfolio, the wider implications of the Crypto markets reliance on USDT and h...

The diamond of the next rally.

21 Jul 2021 1 minute read 0 comments Crypto_Brain

Hello everyone. I want to share my thoughts.Perhaps you may not have heard of WUSD. This is the announced stablecoin from the WAULT Finance team.Of course, maybe this is another piece of crap, but I was interested in their recent news about the partn...

Crypto.com Launches Direct USD to USDC Transfers Through Partnership with Circle

21 Jul 2021 3 minute read 2 comments Crypto.com

With Crypto.com constantly striving to perfect its products and services to provide the best user experience, the crypto company recently unveiled a new feature for both its App and Exchange users to enjoy. Since June 28, direct global USD deposits...

All you need to know about - Stablecoins

20 Jul 2021 8 minute read 4 comments Mishal Alexander

Have you ever wondered why on earth would the world need stablecoins when we have got PayPal or Venmo or GooglePay? Me too. So I looked into it, read about it and I have some interesting knowledge which I believe is useful to you as well. In this pos...