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.


Stabelcoins - Guide

11 Jun 2022 3 minute read 3 comments Noft Games

Stabelcoins — Guide One of the most famous cryptocurrencies in the world is Bitcoin, which is also famous for going up and down a lot in value. Often by the minute. So the crypto world responded by creating currencies that are more stable, aka stable...

🚀 New Coinbase Earn Token 👉 Wrapped Ampleforth learn & Earn 3$ in WAMPL.

16 Jun 2022 1 minute read 2 comments FreedomBuilder

  ✨ Coinbase has just introduced a $3 Reward worth of WAMPL for watching three videos that explain what WAMPL is, how it works and the mission behind it. 🌀Wrapped Ampleforth is The "wrapped" version of AMPL. Learn how it works and you’ll earn up to $...

Tether's Market Cap at 8 Month Low

20 Jun 2022 1 minute read 2 comments kev_nag

Tether presently holds the distinction of being the largest of the stablecoins as well as the third largest of all cryptocurrencies measured by market capitalization. However, the present market turndown is causing a loss in Tether's market value. In...

Crypto Basics #7: What are Stablecoins? And How do they work?

2 Jun 2022 4 minute read 0 comments 2sats

*obligatory not financial advice*   Hi, In this series I want to explain some terms that are relevant to the amazing world of cryptocurrencies to help newcomers understand it better. Today I want to talk about stablecoins.   Previous Parts: Crypto Ba...

Is TRX going to succeed where LUNA failed ?

16 Jun 2022 2 minute read 0 comments thetimetravelerz

Looking at the coin info of TRX one cannot help but notice its infinite supply.What would it take to propel such a coin as a top ranked crypto and keep it in the green ? source(Tron price a few days back source coinmarket cap) This is despite the c...

Can We Trust Algorithmic Stablecoins? The Collapse of LUNA And UST

9 Jun 2022 1 minute read 2 comments Crypto Monkey

What eventually brought down UST and LUNA was a bad design of the algorithmic balance that should maintain the peg of UST to the US dollar. It was an algorithm that worked OK as long as market conditions were not very challenging . Additionally, the...

Stablecoins for peaceful mind

9 Jun 2022 1 minute read 2 comments AlexVan

  Hi, you might know that I'm a big fan of stablecoins, even if they are hit now by the big inflation that is a worldwide event. Yes, from this point of view, it might be a losing bet, but there are opportunities.   The best for me is HBD, either in...

How has stable coin marketcap changed since 2018? Are stable coins really stable?

24 Jun 2022 2 minute read 2 comments Crypto Is Beautiful

At the end of 2018, we only had 4 stable coins with a market capitalization of more than $100 million. Number 1 was Tether with a marketcap of over $2 billion. Alongside it were TrueUSD, USD Coin and Pax Dollar. Today there are 22 stable coins with...

New shock among stablecoins

20 Jun 2022 1 minute read 0 comments Stormgain

Due to the supply of crypto and growth in capitalisation as a result of high profitability from staking, stablecoins found themselves at risk of experiencing a market-wide drop. Emotions are still running high over UST (Terra) as the Tron network's U...

Game is over for UST yet another algorithmic stablecoin, USDD, has entered the crypto ecosystem

3 Jun 2022 4 minute read 3 comments Greenchic

  The Luna-UST saga ends but it has inspired Tron-USDD to fill up that vacuum Not very long ago, Terra Luna had its grand days, remember as we got news after news that Terra’s UST was the 3rd largest decentralised stablecoin in the crypto space af...