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.


Alchemy on Huobi

4 Sep 2020 1 minute read 0 comments TrinityJc

in celebration of $ACH first ever listing on Huobi Exchange Global they are co-launching with Huobi a signup bunos worth 180USDT for new user, Campaign ends at Sept 8.0000hrs (+8GMT) ACH rewards pool at 20,000 USDT on a first come first serve basis A...

Please get rid of theter, now!

4 Sep 2020 1 minute read 4 comments Emanuel90

Good morning ... 8:04 am in Argentina ... I went to bed and woke up thinking about cryptocurrencies .. Especially in a "stable" currency, it goes with quotes, since it is a crypto, which has always raised many suspicions, I speak of Theter. And many...

Stable coin marketcap increases by $100 million daily

4 Sep 2020 1 minute read 0 comments CryptoArgha

Decentralized finance ( Defi) craze has increased the demand for stable crypto currency alot The rise of Defi protocols and demand for tokens in liquidity poll contributing to a huge surge in the supply of stable coins According to data management an...

Stablecoin market capitalization skyrocketed and peaked in nearly two months

4 Sep 2020 1 minute read 0 comments HenryDo

The growth of DeFi protocols and increased demand for tokens among liquidity pools can contribute to a sharp increase in the supply of stablecoins. According to a tweet on September 3 by Coin Metrics co-founder Nic Carter, said that stablecoins like...

Report Shows That Tether Might Not Hold Enough Fiat Reserves

3 Sep 2020 1 minute read 6 comments Abhimanyu Krishnan

The Central Bank of Bahamas on August 31 published a quarterly report. According to one Twitter user, this indicates that Tether (USDT) may not have enough USD reserves to back all of its supply.  On August 31, the Central Bank of Bahamas released a...

Transformation of Money into Stablecoins, CorionX and #MoneyInTheRightDirection

3 Sep 2020 4 minute read 2 comments insidetrader

Like everything in our lives, money is a dynamic object, meaning it is constantly striving for change, transformation and renewal. It is now accepted by many people and authorities that this dynamic object has completed its most recent transformation...

Centralized StableCoin Problem

2 Sep 2020 1 minute read 0 comments Simplify Crypto

Last month, we saw news related with USDC address black listed by Center and for to much people it was a suprise. For me this was not a suprise because we are talking about centralized coins so the company can do what they want to address like blackl...

How to maximize a stablecoin position to buy the f**king dip... [farming a defi savings account]

1 Sep 2020 5 minute read 9 comments walkonwayvs

What's up fam. Imma try to make this as simple and straight-forward as possible because this shit can be a little complicated.     Why You Need a Stablecoin Position You need to have a stablecoin position. In Finance 1.0 this would be called a "cash...

Crypto for Dummies

31 Aug 2020 4 minute read 0 comments Nathan Teale

I decided to write this as something to show my Dad and friends who have no knowledge of what the crypto space is and thought I might share it here as well. It serves as a great starting point for a basic understanding of how a digital currency futur...

Blockchain Solutions!

29 Aug 2020 1 minute read 1 comment cryptomaniacsgr

The US exchange Coinbase and its subsidiary Airtm have partnered with the US government to distribute $ 18 million. The amount was allegedly confiscated by the Maduro government from 62,000 Venezuelan health workers. Yes you read correctly, the US g...