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.


PegNet Telegram AMA with David Johnston, Factom Chairman

5 Nov 2019 10 minute read 0 comments DoYouEvenCrypto

The Factom protocol and project is an enterprise focused effort that addresses data efficiency and security issues for businesses through a second layer built on top of the Bitcoin blockchain. The technical solutions proposed by the developers target...

What Is Paxos Standard (PAX)? - [A Comprehensive Guide to Understanding PAX]

1 Nov 2019 6 minute read 1 comment Mr.CryptoWiki

There are few patterns in the crypto market more noticeable in 2019 than that of stablecoins. Along with the tokenization of traditional assets, like real estate, the general trend has gone away from startups attempting to raise money quickly through...

PegNet Tokenomics - Everything You Need To Know about Peg and pAssets Stability

28 Oct 2019 9 minute read 3 comments DoYouEvenCrypto

Tokenomics – a combination of the words “Token” and “Economics” – is vital to understanding a cryptocurrency’s utilization and value proposition. It helps users and investors to see the potential of a cryptocurrency and make judgments based on a numb...

Stablecoins Vs. Fiat Money: Who shall Dominate More? Details!

24 Oct 2019 4 minute read 3 comments GoCryptoWise

Since the inception of the crypto space in 2009, Fiat money has had a direct competitor to its operations and authority as a means of payment. From around 2013, when cryptocurrencies started to gain traction and get recognition, many people have posi...

Can Stablecoins Solve DEX Problems?

21 Oct 2019 1 minute read 0 comments Yasin

American entrepreneur and loyal cryptocurrency defender John McAfee said that stablecoins are crucial to the adoption of the decentralized exchange (DEX). McAfee made this statement on October 20 with a Tweet. McAfee's video on Twitter has begun wit...

USDC now becomes a tax currency in bermuda

16 Oct 2019 1 minute read 1 comment CryptoArgha

Fintech global payment partner company launched Digital crypto based stable coin USDC last year   Recently The Stable Coin USDC partnered with bermuda country official and officially became a payment method in Bermuda for paying tax   According to a...

What is PegNet? - Stablecoin Network on top of Factom

12 Oct 2019 9 minute read 10 comments DoYouEvenCrypto

Can you imagine a future in which all tradeable assets are tokenized? If you’re in crypto, which I’m guessing you are, then you probably can. After all, there are already thousands of cryptocurrencies out there, many of which essentially represent sh...

The good side of Libra

12 Oct 2019 1 minute read 6 comments raven

My last post about Libra had a tone of criticism. As many others, I am wary of Facebook (for many reasons) and I think Zuckerberg is much too sly. But I don't want to enter in politics here, so let's talk about some possible positive aspects of Libra...

Will cryptocurrencies replace current currencies?

8 Oct 2019 1 minute read 1 comment BitMarian

What are cryptocurrencies and how do they work? Cryptocurrencies are a digital currency accessible to all users of the world. There are currently more than 1,300 and over the years they have gained more and more value. Most of them are based on block...

Stable coin might get regulated under pressure

6 Oct 2019 1 minute read 0 comments CryptoArgha

Cryptocurrency became a essantial part of daily life now   In most cases we use crypto as payment like shopping online, paying for goods, paying rent and electricity bill or paying tax   Among them Stable coins are quite famous for this  type of work...