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...

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...

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...

Financial Technologist Koosha Azim Brings Stablecoin Education to Africa

25 May 2020 2 minute read 0 comments SEG

Koosha Azim is a Silicon Valley-born innovator exploring the emerging space of stablecoins. Mentored by Alyze Sam, he has begun operating financial education initiatives in Africa. From his home in the San Francisco Bay Area, Azim has lectured univer...

What Is TrueUSD (TUSD)? - [A Comprehensive Guide to Understanding TUSD]

25 Sep 2019 8 minute read 2 comments Mr.CryptoWiki

Image source: https://www.trusttoken.com/trueusd TrueUSD is one of the largest stablecoins in the crypto market. It’s the fourth biggest stablecoin in terms of market cap (behind USDT, USDC, and PAX) and the second best stablecoin in terms of daily...

DAI - A Solution for Uncertainity & Liquidity Demand - Technical Analysis?!

12 Jun 2019 1 minute read 11 comments chrispop

I want to start off by defining a stablecoin. I don't want to bore you with the Wikipedia definition so a stablecoin is a cryptocurrency that has low volatility by being backed up with fiat currencies, different assets like gold, silver, etc.  Our su...

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...

DAI Token Integrated For Tipping on Publish0x

3 Jun 2019 1 minute read 79 comments Dan Bainbridge

Today we are super excited to integrate our 3rd token for tipping - DAI . The eth based stable coin created by the Maker DAO project smart contract. It's important to note that this is NOT a "sponsorship". We haven't taken any payment from MakerDAO o...

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...

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...