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.


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24 Mar 2020 4 minute read 0 comments bengy

  Predicting the week/monthly prices and bounds on Cindicator has been a bit of a nightmare in the last week or two! Chaos reigns in all markets, from the oil war, to the crash in cryptocurrencies and traditional markets... followed by swings all ov...

Curate Bitcoin 03/23/2020 by dobobs

24 Mar 2020 5 minute read 0 comments dobobs

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DAI $DAI | 2020 HODL Experiment

16 Mar 2020 2 minute read 3 comments Cryptolohy

Public Service Announcement: I am running a year-long giveaway, check out how you can participate here: https://www.publish0x.com/cryptolohy101/cryptolohys-airdrop-and-giveaways-experiment-2020-edition-xzxewg?a=Vyb896ldvA   Wow, what a couple of da...

In-VIGOR-ating News

12 Mar 2020 6 minute read 8 comments Jimmy D [Upliftnation.io l Trybe.One]

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12 Mar 2020 1 minute read 1 comment EquilibriumEOSDT

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Сryptocurrencies are a threat to the banking system

2 Mar 2020 1 minute read 0 comments Kluma

Deputy Governor of the Central Bank John Cunliffe told what advantages digital coins have, and why they can harm financial stability The development of the digital industry can become a threat to financial stability and the banking system as a whole,...

Ripple will let stable coins to be created on its blockchain

2 Mar 2020 1 minute read 0 comments CryptoArgha

Block Chain based financial and cross border payment coin ripple says stable coin can now be created on ripple ledger. Stable coin are digitally pegged fiat coins that equals $1 as same as US dollar and represent itself as a fiat method of digital cu...

Stablecoins Popularity In Crypto And Other Industries On The Rise

27 Feb 2020 3 minute read 0 comments Andrey Sergeenkov

Stablecoins are on the rise within the crypto market space as more firms leverage these digital assets to attract larger communities and investors. These are typically security or utility tokens that offer crypto users less volatile alternatives give...

Standarta a new stablecoin..

26 Feb 2020 1 minute read 1 comment Crypto coffe & others

What I have learned in not even this year of cryptocurrencies is that any project is worthy of consideration, because what the bitcoin maximalists say in the future there will be room for more Tokens ... https://standarta.io/s?r=cGMa&l=en   To com...

Cindicator: Schnorr, Stablecoins and Privacy coins

21 Feb 2020 2 minute read 0 comments bengy

    Image from Google Play store, press kit for Cindicator   Cindicator has being spawning a batch of really quite long term predictions for this coming year (2020). The last batch were more to do with price predictions... which are tricky things at...