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.


The Truth About Tether FUD

28 Jun 2021 8 minute read 10 comments AlucardLife

Been hearing about Tether (USDT) FUD for as long as I've been in crypto. Now's the first time that I have enough information to provide an informed opinion on the subject. So yeah. TL;DR — You take risk regardless of the financial system you choose t...

Reviving Tether FUD

28 Jun 2021 3 minute read 4 comments idiosyncratic

Tether FUD is spreading again among some crypto groups as usual. Even though the company could support their claims and eliminated the previous speculations, it looks like people are not satisfied with the division of the reseverves by the company....

What are Stablecoins?

28 Jun 2021 3 minute read 0 comments Hodlnaut

Reposted from our blog here. Navigating through the cryptocurrency world can be overwhelming with all the available options in the market. Coupled with frequent fluctuation of cryptocurrencies’ prices, investors tend to abstain from investing in cryp...

Crypto Questions: What is the difference between a stable coin and a DEP20 token?

27 Jun 2021 6 minute read 0 comments cypress101

What now? There are TYPES of crypto other than Bitcoin? Yes. And the underlying foundation of these cryptos can be different which is just a fancy way to say they can have different technology that may or may not be proprietary. So, the article title...

A Closer Look at Tether (USDT)

26 Jun 2021 2 minute read 1 comment Gongo

Tether (USDT) is a stablecoin, which means it is a type of crypto which aims to keep crypto valuations stable.  They claim to be backed by an equivalent amount of traditional fiat currencies, such as the US dollar or Euro, which are supposed to be h...

The TITAN & IRON Algo Stablecoin $1.75B Disaster

26 Jun 2021 4 minute read 13 comments MintDice.com

As a cryptocurrency investor, the product you are investing in is inherently unstable, and you need to be prepared for the impossible. But sometimes it can be difficult to imagine just what the impossible may be. If you are a TITAN or IRON investor,...

The reason behind BINANCE COIN being overtaken by Tether

26 Jun 2021 1 minute read 1 comment Defiant Pathfinder

Binance coin has been sitting on number 3 for so long and that position once belonged to Ripple but now that same spot has been claimed by Tether and Binance coin is now following behind being number 4 on the chart. Some might be seeing this as an op...

Stablecoins: What is a Stablecoin?

25 Jun 2021 7 minute read 1 comment MathTiger

This article is part of a series analyzing stablecoins pegged to the United States Dollar (USD).  Are all stablecoins equally stable?  In the coming weeks, I plan to analyze and rank each of the main stablecoins in the crypto ecosystem, in terms of s...

A Short Analysis of Four Stablecoins

24 Jun 2021 1 minute read 3 comments flarnrules

    In researching my most recent Flarnchain newsletter about Stablecoins, I took at look at the charts for four different stable coins: Tether (USDT), US Dollar Coin (USDC), DAI (DAI), and Ampleforth (AMPL). I don't want to spend too much time rewr...

Ampleforth: Creating the Best Reserve Currency

23 Jun 2021 4 minute read 8 comments zacharias

23 June 2021:  In an interview with Real Vision senior editor Ash Bennington, the founder of Ampleforth, Evan Kuo, discussed the journey of creating Ampleforth, addressed some key misrepresentations of AMPL, and talked about where he sees Ampleforth...