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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.
11 Jul 2019 3 minute read 0 comments EbriDan
#Moozicore is an online music streaming service on the blockchain that has a lot of interesting and new features. Moozicore has created a web panel for these services, all a user has to do is download the moozicore mobile app which is available on th...
10 Jul 2019 2 minute read 7 comments kevW!ls0n
So I think it’s pretty clear that by now investors who are really into the market should get into at least one stablecoin. A lot of people have chosen to go into Tether (WHY?), maybe because that’s the easiest or most noticeable option but c'mon, ser...
8 Jul 2019 1 minute read 1 comment Ed-california
It’s been an interesting week for cryptocurrencies, with the market going down a bit from its high last week. Things look stable. Stablecoins, of course, remain stable regardless, more or less. And I’m not talking about Tether, oh God no. I’m talki...
6 Jul 2019 1 minute read 0 comments CryptoBillion
Created by RupayToken A new stable coin has been recently launched and it's pegged to Indian Rupees. Why use it? For a higher priority to Indians, the platforms allows Indians to deposit and withdraw using their bank account. The token has many use c...
4 Jul 2019 2 minute read 1 comment Cryptofivers
Many crypto enthusiasts might argue that the crypto verse is still young but not many people understand the right coins to stake on or keep in their wish list. Apart from Bitcoin, there are so many choices in the market and stablecoins popularity is...
2 Jul 2019 3 minute read 0 comments Sykt
"cryptocurrencies"A algorithm based share-market.There are thousands of crypto in digital market.Most of them prices rise and fall.But today we discuss about stable coin. Stablecoins are the ones whose value remains stable from the begain to now.Thes...
28 Jun 2019 10 minute read 1 comment Roberto D.
In December 2017, the Maker company released their long awaited system for a decentralized "stablecoin", called Dai (DAI). A stablecoin, as the name suggests, is a currency whose value is (relatively) stable, therefore lacking the wide fluctuations t...
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...
20 Jun 2019 2 minute read 1 comment Roberto D.
Facebook has unveiled the first details of its project to become a bank. The key elements are the creation of a cryptocurrency, Libra, and the co-foundation of a non-profit organization, Libra Association, which will act as the central monetary autho...
20 Jun 2019 3 minute read 1 comment HarmonyMedia
For a little while I have been trying to bring this issue to Nexus community members, yet few seem to grasp how essential a stable unit of account is for the adoption of blockchain technology. I believe this is a rather dangerous disposition th...
