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.


What is Tether USD (USDT)? The Stablecoin Fiasco.

5 Oct 2019 14 minute read 6 comments CryptoBoomer

"The underlying cause of the crash will be found in the preceding months and years, in the progressively increasing build-up of market cooperativity, or effective interactions between investors, often translated into accelerating ascent of the mark...

PegNet Hits $1M Cap in Just 30 Days! - How To Catch Parabolic Trend?

11 Nov 2019 1 minute read 1 comment DoYouEvenCrypto

PegNet, the stablecoin network that is built on top of the Factom Protocol, has crossed the $1 million market cap in just a month. The PegNet network and its token has grown from the ground up, as there is no ICO or pre-mine in the network. The netwo...

Multi-Collateral DAI - What does it mean for Raise?

18 Nov 2019 1 minute read 2 comments RobSpitz

Today (November 18th 2019), MakerDAO is launching its new version of DAI - Multi-Collateral DAI (MCD). After hitting their $100 million market-cap, MakerDAO needed a solution to continue their growth and minimise risk so as a result, MCD has launched...

Cryptocurrency - Pi

24 Jan 2020 2 minute read 2 comments blogninjachris

Cryptocurrency - Pi There is a new type of crypto coin starting to sprout up, it is called Pi and is available to those who get invited to start earning via mining on their phones. I happened to get lucky browsing around a site (not Publish0x) that I...

TRUE Stablecoins are pegged to the global economy.

10 Sep 2019 1 minute read 4 comments EbriDan

Everyone in the crypto community is familiar with the term "stablecoins", they are really important because of their fixed value, stablecoins are usually pegged to an asset of value, mostly to the U.S Dollars. There is a flaw with this idea, although...

Curate Bitcoin 04/16/2020 by dobobs

17 Apr 2020 5 minute read 0 comments dobobs

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of CURATION. Every investment and trading move involves risk. You should conduct your own research when making a decision. Bitcoin Price S...

Curate Bitcoin 03/26/2020 by dobobs

27 Mar 2020 5 minute read 0 comments dobobs

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of CURATION. Every investment and trading move involves risk. You should conduct your own research when making a decision. Bitcoin News R...

Anatomy of a Crypto Fraud: USDZ

12 Apr 2020 2 minute read 0 comments KHubbard

  Have you heard of the latest and greatest stablecoin by the name USDZ? Let’s hope not, but if you have I really hope you didn’t fall victim to this unfortunate crypto scam.  Scams in crypto are nothing new but with stablecoins proving their value...

Carbon Money (Stablecoin) Leaves EOS

28 Jan 2020 3 minute read 0 comments zogintl

OVERVIEW Carbon Money has announced that the project is leaving the stablecoin space. The team said that they would instead be pursuing their “better-performing credit/debit card on-ramp.” Some, particularly those from the EOS community, were caught...

Libra has no future, facebook should support third-party projects, so a report from the eToro blockchain research unit

29 Nov 2019 1 minute read 0 comments Roberto D.

The report published today by Finextra, the research unit of eToro, puts forward a series of substantial criticisms of books, the cryptocurrency made in facebook, strongly desired by Zuckerberg, who has so suddenly ignited the controversy of media an...