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.


All you need to know about - Stablecoins

20 Jul 2021 8 minute read 4 comments Mishal Alexander

Have you ever wondered why on earth would the world need stablecoins when we have got PayPal or Venmo or GooglePay? Me too. So I looked into it, read about it and I have some interesting knowledge which I believe is useful to you as well. In this pos...

Who the printer is afraid of?

20 Jul 2021 1 minute read 0 comments Crypto_Brain

Good day.Why are the owners of money so afraid of stablecoins? After all, the recent meeting of top US financial officials was dedicated specifically to stablecoins. Bitcoin is not a word, because you can tell horror stories about it about its volati...

Can crypto climb this wall of worry?

20 Jul 2021 2 minute read 0 comments NZFX

There's a saying in traditional markets that equities often 'climb wall of worry'.   That means there's always some compelling reason out there for assets not to appreciate but they tend to despite the negative factors.   Are the crypto markets able...

Why Do You Need to Keep an Algorithmic Stablecoin in Your Portfolio?

19 Jul 2021 3 minute read 1 comment claim_finance

What is an Algorithmic Stablecoin? Even if you still are a cryptocurrency enthusiast and haven’t yet started trading in the market, you must’ve heard the term stablecoin. Stablecoins are a specific category of cryptocurrency that is pegged to a more...

Edgecoin is the World's First Educational Digital Stablecoin Payment System

18 Jul 2021 3 minute read 1 comment Bitloca

Abstract Bitcoin is a digital asset developed by Satoshi Nakamoto to address various problems in the traditional financial system. Bitcoin since its launch in 2009 has grown quite significantly, to date there are thousands of cryptocurrencies launch...

#SatoshisSaturday: 2021-07-17

17 Jul 2021 4 minute read 0 comments LoonyLiberal

UPDATE: My CoinLoan calculation was incorrect. I have corrected my daily and annual totals to reflect the actual value (rounded down to the nearest whole cent). DISCLAIMER 1: The links to the crypto sites in this article are affiliate links. Furtherm...

Tether (USDT) Is Losing Market Share. But Why?! And Is It Good or Bad for Crypto?

16 Jul 2021 7 minute read 7 comments Michael @ CryptoEQ

Overview Formerly known as RealCoin, US Dollar Tether (USDT) was established in 2014, making it one of the oldest stablecoins. USDT is a cryptocurrency that leverages distributed ledger technology to allow individuals and organizations to store, sen...

Know Your Coin: Stability, Reimagined

15 Jul 2021 11 minute read 0 comments Thumbs Up Finance 🇨🇦

Hey friends 👋 Welcome to the first ever issue of Know Your Coin, the series where I'll explain the idea behind (and the potential value of) various cryptocurrency projects 👨‍🏫 At the time of writing there are over 4000 cryptocurrencies in circulatio...

Polygon Pool Party (How to deposit into PoolTogether on Polygon)

15 Jul 2021 17 minute read 6 comments Thumbs Up Finance 🇨🇦

Digging Into DeFi #3 Hey friends 👋 If you read my first Crypto Misadventures post: "A Wallet By Any Other Name" then you're aware that like most crypto noobs, I have not have not been having a very good experience with gas fees on the Ethereum netwo...

Samecoin I Defi in Blockchain & Stablecoin

14 Jul 2021 4 minute read 0 comments GoldySultan

A stablecoin is another class of cryptographic types of cash that undertakings to offer worth unfaltering quality and are maintained by a hold asset. Stablecoins have gained balance as they attempt to bring to the table the best arrangement the secon...