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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.

Sleep Like A Baby - Riding the Bear Market

17 May 2022 3 minute read 10 comments Steve Hodl

Investing in crypto is VERY high risk. It is a new and not fully proven technology in many areas plus there are many scammers around every corner. To make things more challenging, we are now entering a new bear market. Last week we saw the implosion...


16 May 2022 6 minute read 0 comments Stormgain

What is a Stablecoin? The global financial market is extremely volatile nowadays. Stablecoins, as a type of cryptocurrency, are increasingly attracting investors as an alternative to traditional assets. So, what is a stablecoin, how is it regulated a...

Terra LUNA at Around $0.00029 - Don't Let Your Greed Take Over, Stay Away.

15 May 2022 4 minute read 10 comments ssaurel

The Zimbabwean dollar could be considered as hard money against Terra Luna… A few days after the LUNA Sh*tcoin explosion, many are wondering if it’s time to buy LUNA today. I’ll tell you why many people are asking this question today. It’s all about...

The Role of Stablecoins in a Decentralized Ecosystem

15 May 2022 4 minute read 0 comments NaderB.

The Role of Stablecoins in a Decentralized Ecosystem  Source Banks. As much as people may hate them, everyone to some degree needs them. However, not everyone has access to a bank account around the world or a safe place to store their hard-earne...

Don't Hassle The Hoff - Spending HBD in Germany

15 May 2022 3 minute read 6 comments Steve Hodl

You may be surprised to learn that the home of "Vorsprung durch Technik" and Scooter is a very cash-dependent economy and country. The world's largest payment provider Visa has in my experience only been able to get its Visa debit card accepted...

Bloody Markets, UST Crash and Light At The End Of The Tunnel

14 May 2022 1 minute read 2 comments InsideCrypto

Hey crypto people. It’s been an equally exciting and terrifying last 72 hours. The market has come down so much so fast that it was hard to catch your breath. This is the sixth episode of our news segment of the Inside Crypto podcast. In this series...

The Shift To Quality Will Now Commence

14 May 2022 3 minute read 2 comments Sapphire

It’s Always The Case During any bearish or brutal season, one will always see and experience a shift to quality. Traditionally, when the market drops, there is a move to Bitcoin, stablecoins, and cash. This ultimately causes Bitcoin dominance to rise...

Market Minute: Visualizing UST’s crash that rocked the Crypto boat

14 May 2022 1 minute read 2 comments fklivestolearn

The fall from grace of the Terra ecosystem is one of the most impactful events in Crypto’s history It was a rough week for cryptocurrencies in general and the Defi space in particular. The dramatic collapse of Terra (LUNA) caused the Defi projects l...

LUNA's Crash Serves As A Reminder To Diversify Our Portfolios

13 May 2022 3 minute read 1 comment Brennan

The Terra (LUNA/UST) blockchain project suffered what appears to be a coordinated attack this week, causing the UST stablecoin to lose its peg to the dollar, and the LUNA token to enter into a collapsing "death spiral" over the course of a couple of...

Quick UST and LUNA Crash Video

13 May 2022 1 minute read 5 comments Crypto JBro

I made this quick video about the UST and LUNA crash last night.  It was a perfect storm that created this death spiral.  What are your thoughts on this crash?  Will it spread through more crypto ecosystems?  Will more regulation come from this and w...