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.


Stablecoins: What You Need to Know (Part 1)

23 Feb 2023 13 minute read 0 comments Todd Mei PhD

Recent and persistent criticisms by govenments about the actual stability of cryptocurrency stablecoins provides a good dose of caution; but it can also be misleading. Some stablecoins are designed better than others. Key questions revolve ar...

Crypto Criminal in Big Time Trouble

18 Feb 2023 2 minute read 1 comment Cje95

I can’t lie it seemed that the SEC was hellbent on going after anyone that could have run afoul of US law except for those who we all know are crooked. Just when it seemed like money was able to buy people out of consequences the tide turned and when...

Stability and "Pumpability" of HBD in Crypto Bull Market

16 Feb 2023 2 minute read 0 comments idiosyncratic

Hive-backed Dollar, Hive Dollar, or HBD. It is the stablecoin of the Hive ecosystem that is created via HIVE coins. Each HBD keeps a certain amount of HIVE inside to be created in the first place. Though it may sound a bit risky remembering some cata...

Binance FUD, the SEC, and the end of BUSD: What you should know

15 Feb 2023 2 minute read 1 comment Ceekz

Things don't look good for Binance lately to put it mildly. Last week, its last USD banking partner, Signature Bank decided to distance itself from crypto and stopped proceeding any USD deposits and withdrawals. To add to that Paxos, that issues Bin...

SEC Delivers A Blow To Binance: What Will Happen With BNB and BUSD Now?

15 Feb 2023 2 minute read 3 comments SimpleSwap

U.S. Securities and Exchange Commission (SEC) recognized the BUSD stablecoin as an unregistered security. Based on this information, The New York State Department of Financial Services asked the emitent of this stablecoin PaxosTrust to stop minting B...

Binance's BUSD Stablecoin Faces US Regulatory Action Amidst Cryptocurrency Crackdown

15 Feb 2023 6 minute read 1 comment Michael @ CryptoEQ

You are reading an excerpt from our free but shortened abridged report! While still packed with incredible research and data, for just $20/month you can upgrade to our FULL library of 50+ reports (including this one) and complete industry-leading ana...

Not Learning Anything the First Time Around Prepare for Ripple Labs 2.0

15 Feb 2023 2 minute read 1 comment Cje95

Welp turns out the SEC is an old dog that is not able to learn new tricks. To be honest for a while I had a small sliver of hope that maybe just maybe they would not do anything psychotic. I was wrong and that is what yesterday's news has told us now...

Crypto on Capital Hill: From the Start of the 118th Congress to February 10th

14 Feb 2023 3 minute read 0 comments Cje95

I think it is apparent to really anyone that has watched the news recently that this Congress has gotten off to a bumpy start. The issues that popped up include not only the House but also the Senate and cross-party lines as well though this is not a...

SEC going wild again.

13 Feb 2023 1 minute read 0 comments CrSanity

Everyone in the space knows about SEC vs Ripple lawsuit, SEC with its wild accusations thrown around at projects such as LBRY and others.  Are their actions righteous, or is there a hidden message between the lines? Are all stablecoins at risk? But...

Testing out Gyroscope: A New Decentralised Stablecoin Architecture

11 Feb 2023 4 minute read 0 comments bengy

  Ah stablecoins... this hard-nut that is going to be one of the critical parts of the decentralised puzzle is still yet to be adequately solved.... and time is starting to run a little short as we start to see some interest in Central Bank curren...