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...

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...

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...

Stable Bitcoin rising above Bitcoin

16 Jan 2022 1 minute read 0 comments Yugocean

     We all know that Bitcoin is the world's first cryptocurrency, in addition we also know that stablecoins also play an important role in responding to market volatility.      These stablecoins are based on other established currencies, among these...

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”....

Spell token and the Curve Wars. Also: a word about judgement and peace

16 Jan 2022 1 minute read 0 comments Aware1

It's a relatively quiet Sunday in the crypto market with not much in the way of price action or breaking headlines. Behind the scenes, the Curve wars heat up and the coin of the day is a rising contender in the battle for control. Spell Token $SPELL...

What is Sai? (SAI) [A Comprehensive Guide to SAI]

19 Nov 2019 7 minute read 6 comments Mr.CryptoWiki

I’ve talked about all sorts of projects in the past few weeks. The big names like Bitcoin, Ethereum and Ripple, and many others. I’ve stressed the significance of certain niches and trends, such as cloud computing and the emergence of exchange tokens...

The TITAN & IRON Algo Stablecoin $1.75B Disaster

26 Jun 2021 4 minute read 13 comments MintDice.com

As a cryptocurrency investor, the product you are investing in is inherently unstable, and you need to be prepared for the impossible. But sometimes it can be difficult to imagine just what the impossible may be. If you are a TITAN or IRON investor,...

What is Maker (MKR)? [A Comprehensive Guide to Understanding Maker]

27 Sep 2019 7 minute read 2 comments Mr.CryptoWiki

Cryptocurrencies, in the classical sense of the word, are intended to be used as a means of payment. Take Bitcoin for example, in the Bitcoin whitepaper Satoshi Nakamoto called Bitcoin a peer-to-peer electronic cash system. Many other cryptocurrencie...

DAI Statistics: Leading by example

26 Jun 2019 6 minute read 18 comments Niklas Spille-Scheich

"Too much volatility to be of any use" is one of the main concerns when it comes to accepting Cryptocurrencies. Those who did accept their salary in any of the major cryptocurrencies had a tough time living through 2018's bear market: "Our salaries w...