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.


Tether accounts for more than 80% of stablecoin market

18 Feb 2020 1 minute read 0 comments mrnsaydou

if u Like the article , then plz don't hesitate to make a TIP for me and I'll be grateful to you ;) TETHER Has also gained market share recently   Read full report here According to ‘The Weekly Report’ by Arcane Research, Tether’s market share curr...

Publish0xTutorials: What to do with your DAI?

16 Feb 2020 5 minute read 5 comments bengy

  So, you have just cashed out your BAT (Basic Attention Tokens) from Publish0x (or elsewhere) and they are now sitting in a wallet to which you hold your own private keys. What to do with them now, what do they do? What is Dai?       Unsplash...

Cardano ADA and 2020 Stablecoin Market?

15 Feb 2020 2 minute read 0 comments TiddyBit

Opinion: Cardano what can I say. It has its problems but it still looks optimistic. I was lucky enough to gain entry around 3-4 cents before test staking came out right at its bottom dip around December 2019. With all of its news and hype that is gre...

WHAT EXACTLY ARE STABLE COINS?

8 Feb 2020 1 minute read 0 comments Franklinlee

What is a stable coin? So I this article, I will be talking about stable coins and what exactly they are. So no time, let's dive straight right into it. Stable coins are coins issued to the customers in exchange for a specified currency at a certa...

Announcing INSTARS <> DAI Partnership

6 Feb 2020 2 minute read 4 comments Insights Network

  Today, we're proud to announce our partnership with Maker DAO as we officially launch the Dai stablecoin integration on the instars.com platform. Starting now, users all over the world can now participate in market research such as surveys or uplo...

Crypto News: Euro-Bank Taskforce To Clear the Way to Digital Euro

3 Feb 2020 1 minute read 0 comments BitcoinGordon

  Christine Lagarde, the President of the ECB, or the European Central Bank, made the announcement of a task force to pave the way for the creation and implementation of their digital Euro. The ECB Governing Council "...decided on the monetary policy...

State cryptocurrencies, Bakong, Cambodia's new CBDC

31 Jan 2020 2 minute read 0 comments Roberto D.

It's not in itself new, since the new Central Bank Digital Currency (CBDC) had already been launched on an experimental basis last July, however Chea Serey (general manager of NBC, the country's central bank) said that the system will become fully op...

Stable coins are now dominating ethereum blockchain

30 Jan 2020 1 minute read 1 comment CryptoArgha

Blockchain based Decentralized ecosystem ethereum is no longer a famous crypto asset building platform anymore Ether ethereum native crypto currency isnt dominating the ethereum blockchain anymore as stable coins took its place According to analysis...

USD Tez (USDtz): The Tezos Ecosystem Stablecoin Design

29 Jan 2020 3 minute read 4 comments rhyzom

USDtz is the stablecoin used in the Tezos ecosystem. It's an interesting and fairly unique stablecoin design and an impressive feat of (decentralized) financial engineering implementing a set of mechanisms in maintaining the peg to the US dollar. US...

A storm of global rivalries to develop CBDCs is brewing

28 Jan 2020 4 minute read 0 comments fklivestolearn

The major central banks are investigating potential use cases of the digital equivalents of fiat currencies at an accelerated pace   If there has been one overwhelming factor that has precipitated these aggressive moves by the global central banks to...