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.


Mike Ermolaev: 3 reasons behind the recent crypto market fall

17 Jan 2022 3 minute read 0 comments Mike Ermolaev

After a year of gains and record highs, cryptocurrencies are going through a turbulent time, and the market is in extreme fear territory. Why is this not surprising? There have been several major events we need to chew on.  The crypto market has suff...

Stack Em If Ya Can!

10 Jan 2022 3 minute read 0 comments Cje95

Beaten down Bitcoin has historically shown that it provides a huge opportunity for smaller investors to get into it and really benefit. The last year/year and a half have been huge for Bitcoin and crypto in value increase and adaptation. That being s...

Why Terra Luna is only getting started...

3 Jan 2022 2 minute read 1 comment DMoneyCanada

We all know Tether, the largest stablecoin today, is a ticking time bomb. No one really knows how much of the $78 billion market cap is backed by real US Dollars. Even USDC, the second-largest stablecoin, is getting closer to being regulated and even...

Stable coins. Quick explanation.

27 Dec 2021 2 minute read 1 comment ArtMoz

Stable Coins   Stable coins are coins whose price is stable depending on what are they backed by. Lets say a stable coin is backed 1:1 ratio with a US Dollar, that would mean that You will always get 1 US dollar for the coin.  Why would anyone need s...

We get paid in Ampleforth, but what exactly is Ampleforth?

7 Dec 2021 1 minute read 5 comments LeftFooted

It’s a question I’m asking… myself. The first thing I thought when I first learnt about the existence of Ampleforth was, “that’s a cool name”. It sounds like a castle in Scotland, or an old liqueur. “Yeah, I’ll have an Ampleforth and Tonic, please”....

Investing & Spending – How I Marry The Two

6 Jan 2022 4 minute read 0 comments Sapphire

Is That Even Possible One of the most basic principles in finance is that you can’t become wealthy by spending. It seems pretty basic and yet we are surrounded by many poor, rich individuals. Rich because they earn a sizable income and poor because n...

For a stablecoin, Ampleforth is pretty unstable

17 Dec 2021 1 minute read 4 comments LeftFooted

I'm assuming that y'all, just like me, check your dashboard pretty often and that's how you know the $ countervalue of what you have (in AMPL and FARM) has been going down consistently for a couple of days. Now, that's fine with Harvest Finance (FARM...

What is Maker (MKR)? And Should You Invest In It?

24 Aug 2021 4 minute read 1 comment MintDice.com

In the cryptocurrency world, there are so many alt coins that it is simply impossible to invest in them all. This means you need to pick and choose your investments carefully. Especially when it comes to alt coins because many of them can actually b...

Stablecoins inch closer to global adoption. Yield Guild Games $YGG and Merit Circle $MC

15 Jan 2022 1 minute read 0 comments Aware1

A quick check-in on the market. Bitcoin is back above $43,000 and looking to gather momentum before attempting to breakout higher. Stablecoins are back in the headlines with PayPal announcing that it is exploring its own stablecoin while regulators...

Celo: A Smart Contract and Stablecoin Blockchain for Smart Phone Users

19 Dec 2021 3 minute read 3 comments 2sats

*obligatory not financial advice*   What is Celo? Celo is a smart contract blockchain that enables smart phone users to become their own bank. There are many people in poorer countries that do have smart phones but no access to a trustworthy bank, Ce...