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.


The unstoppable rise of Stablecoins

28 May 2020 5 minute read 6 comments Paolo Kolla

The cryptocurrency space has seen a huge expansion of stablecoins in the past year. Almost 60 different projects are currently live and many more are being created. This week, the value of assets for all stablecoins surpassed $10 billion for the firs...

Tezos first stablecoin is officially launched: USDtz

5 May 2020 1 minute read 6 comments Allen Walters

Yesterday USDtz went live. USDtz is Tezos first stablecoin and will be part of a DeFi ecosystem that is in the process of being build. Quick recap from my last article: USDtz is a stablecoin with DAO features that is part of a DeFi ecosystem. USDtz i...

Best Place for Canadians to Buy and Sell Stablecoins in 2020...

23 May 2020 4 minute read 13 comments walkonwayvs

Introduction Things are a little different in Canada in terms of cryptocurrency. Mainly the conversion rate between CAD/USD is pretty shitty almost always and because of that there are fewer options to be able to transact with Canadian Dollars. Eh. B...

EURS and their wallet analysis. Finally a Tether USD worth opponent? | Testing Wallets #1

25 May 2020 3 minute read 8 comments CryptoMartin

During the last days I've been searching about stablecoins and I figured out that most of them are based and backed up by the US Dollar, basically, in my opinion, because is the most important currency in the world, so having it, without having in mi...

Stable Coins Guides - Capture your crypto value safely!

14 May 2020 4 minute read 2 comments Wishiknew

Stable Coins Source: Block.tech Why do we need Stablecoins? Crypto can be very volatile. Within a day, it can go up and down by over 10% or even 90%. We need coins to capture the value and reduce volatility for it to be useable. Who use it? Traders...

Tezos Defi partnership: USD Tez Project and Tokensoft

3 May 2020 2 minute read 2 comments Allen Walters

This partnership sets the stage for the launch of Tezos' first stablecoin to be expected this weekend: USDtz. USDtz is not just your average stabelcoin, it's part of a DeFi ecosystem that is about to be released in phases on Tezos. Therefore USDtz is...

All you need to know about DAI and Stablecoin

19 May 2020 3 minute read 0 comments AncaElena

First of all, WHAT IS A STABLECOIN? Stablecoins are just as the name implies. They are a cryptocurrency that has stability as their primary feature. They are pegged to the value of another asset and will hold the same value with that asset through ti...

Ethereum’s time to absolutely rock the Crypto World!!

1 May 2020 3 minute read 6 comments Greenchic

   Ethereum has been successfully delivering on the promise of Blockchain!! The largest Altcoin by Market Cap, Ethereum is in a League of its own. Ethereum has been a public, open source blockchain platform of choice for enterprises to build their p...

Stablecoins in Crypto market

10 May 2020 2 minute read 0 comments Kavi

  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...

FRESH 5 News To Make You Attract More Tether (USDT)

16 May 2020 1 minute read 3 comments SabineTheQueen

Say hello to your little PROFIT friend! Today we look out for Theher, also known as USDT. Tether is the most popular stablecoin right now. Stablecoin means that 1 coin equals 1 dollar. Let's head to the news! 5th: Bitcoin Market Connection When BTC g...