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.


Can cryptocurrency replace fiat currency?

2 Oct 2020 3 minute read 3 comments Blindworld

Ever since Bitcoin found its way into the mainstream trading floor, it was considered as a commodity. A risky investment that may get you huge returns. No one saw it as a currency. No one received their salaries in Bitcoin or any other cryptocurrency...

Will DeFi be a mainstream service?

2 Oct 2020 2 minute read 1 comment Blindworld

Imagine you are starting a business, you need a loan to raise capital. You will approach a bank or a financial service company that will lend you money at a particular interest rate. This money does not belong to the bank actually, it belongs to some...

Venture Studio Draper-Goren-Holm (Yes that's Tim Draper) has invested in "Tezos Stable Technologies, Ltd."

2 Oct 2020 1 minute read 0 comments Allen Walters

"We invest in killer blockchain startups." That is the slogan of the Venture Studio & Fund Draper-Goren-Holm. And they just announced an investment was made in the Stablecoin and DeFi ecosystem "Tezos Stable Technologies, Ltd." (TST) which is in deve...

Pay attention to Terra (and Luna)

1 Oct 2020 2 minute read 0 comments The Very Confused Martin Babalor

Starting yesterday, a new earn project was launched on CoinmarketCap Earn. It's called Learn about Terra and earn LUNA tokens and you can start earning a few LUNA tokens for free if you watch a series of three videos and answer correctly to every que...

Why stable coins ?

1 Oct 2020 2 minute read 1 comment Blindworld

If you are not familiar with stable coins, this is an opportunity for you to understand them. The currency was used as a medium of exchange, it was widely accepted by the mob as it promises a monetary value. It literally stores a monetary value. If y...

Binance Launches a Mix of MakerDAO and Compound on its Chain

30 Sep 2020 1 minute read 6 comments Abhimanyu Krishnan

On September 28, Binance announced a new money market system called Venus that features a design that is a combination of both MakerDAO (MKR) and Compound (COMP). Binance first announced Venus in August 2019, saying that it aims to break “financial...

DeFi Major Functions

30 Sep 2020 2 minute read 0 comments CoinSteps

Decentralized Finance, most widely known as DeFi for short, is one of the hottest topics in the crypto space. There is a high possibility you already know what Defi is and its uses. Briefly the idea behind it is to take banks and governments and let...

What exactly are stable coins?

29 Sep 2020 2 minute read 0 comments bossin

What are Stable Coins? A stable coin is a type of cryptocurrency that has a market price at a stable rate, aims for the lowest price volatility, and is often pegged to a national currency. Tether (USDT) is a good example of a stable coin because it m...

Bitcoin Political News - Russia and China state led insider trading !!! Taxes are good! Plus - pure, lurking evils of stablecoins loom for US

28 Sep 2020 4 minute read 8 comments Dave Sawyer

Hey Cryptopunks, God knows you know we love ya.  Thanks for freeing money from the state. If we make it.  If not,  thanks for trying.  Thanks for the most likes eVAH last article, and for our first double digit downvote! Yay!  please tell me what pee...

European Union plans to regulate cryptocurrency

25 Sep 2020 1 minute read 3 comments Heruvim78

I am writing less lately, as i started my full time job, once again, and i am only free in weekends at the moment. Some days I am working from 8 to 20, so i cannot wait to come home and sleep one extra hour if possible, instead of staying online.  St...