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.


Classes of digital currencies

13 May 2020 1 minute read 0 comments Tash356

Cryptocurrency is a generic term it can be used to refer to a digital currency or a class of digital currencies. Currently there more than 5k cryptocurrencies out there and each one of them can fall in one of seven classes give or take.  These classe...

Stablecoins are booming amid the coronavirus crisis

13 May 2020 2 minute read 0 comments Ryan Osborne

In uncertain times, stability is key. As healthcare systems the world over experience an  unprecedented challenge, so too does the global financial market. And as a revolutionary financial technology, crypto faces its biggest challenge yet. While man...

CBDCs and stablecoins, not similar as digitized fiat is not a ‘DLT based token’

12 May 2020 1 minute read 0 comments PassionCryptodotcom

The central bank digital currency [CBDC] project has been in the talks for quite a long time now. Although Sweden has its e-krona, and the U.S its Fedcoin, they haven’t made much progress in comparison to the likes of China in the field. According to...

Stablecoins in Crypto market

10 May 2020 2 minute read 0 comments Kavi

  Crypto market is all about high volatile and probably short term trading . in 2015 , tether (USDT) entered in the market for the purpose to stablise the market with backed USDT which was pegged with US dollar in 1:1 ratio in terms of value. before...

Episode 43: THE BIG PLAN..Connecting The Dots - #XRP - #XLM - #HEDERA HASHGRAPH - IMF - Stablecoins!

8 May 2020 1 minute read 0 comments NewCreationCapital

Audio:   Video:   Join The New Creation Cronies Telegram Group   In Episode 43 we take a deep dive into the rabbit whole of stable coins. Is XRP, XLM and Hedera Hasgrapsh in the plan for CBDCs and stable coins? This is the question and is the "Stor...

BRAZIL versus R$ Stablecoins

6 May 2020 1 minute read 0 comments Tarcam76

Hi,   I was curious, looking at a lot US$ stablecoins like: (COINTIMES BR source; COINCODEX source; COINMARKETCAP)   - Tether USD (USDT) [rank #4] - https://coinmarketcap.com/currencies/tether/,  - TrueUSD (TUSD) [rank #49] - https://coinmarketcap.co...

Tezos first stablecoin is officially launched: USDtz

5 May 2020 1 minute read 6 comments Allen Walters

Yesterday USDtz went live. USDtz is Tezos first stablecoin and will be part of a DeFi ecosystem that is in the process of being build. Quick recap from my last article: USDtz is a stablecoin with DAO features that is part of a DeFi ecosystem. USDtz i...

Tezos Defi partnership: USD Tez Project and Tokensoft

3 May 2020 2 minute read 2 comments Allen Walters

This partnership sets the stage for the launch of Tezos' first stablecoin to be expected this weekend: USDtz. USDtz is not just your average stabelcoin, it's part of a DeFi ecosystem that is about to be released in phases on Tezos. Therefore USDtz is...

Ethereum’s time to absolutely rock the Crypto World!!

1 May 2020 3 minute read 6 comments Greenchic

   Ethereum has been successfully delivering on the promise of Blockchain!! The largest Altcoin by Market Cap, Ethereum is in a League of its own. Ethereum has been a public, open source blockchain platform of choice for enterprises to build their p...

Analyst Peter Brandt Compares Tether to a 'Nigerian Trinket'

30 Apr 2020 1 minute read 0 comments Abhi K

Prominent market analyst Peter Brandt, who has in recent times quickly become a go-to source for regular cryptocurrency market investors, has compared the Tether (USDT) stablecoin to the ‘Nigerian trinket’, saying that “it is about as safe as holding...