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.


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...

A Tasty Yield farm on Pancakeswap

22 Jun 2021 1 minute read 4 comments BeeHoward

There is a $AMPL-$BUSD Farm on pancakeswap.It has been in existence for 8 days. $AMPL is a popular rebasing token. Users of Publish0x would be familiar with it.The historical price average of $AMPL has been around $1, it is almost like a stablecoin....

What are the Main Types of Cryptocurrencies? | A Beginner-Friendly Guide

21 Jun 2021 2 minute read 5 comments BudgetHolics

  Store of Value Cryptocurrencies As you hold any fiat, your purchasing power increases over time. Government issued currencies loose 2-3% of purchasing power every year, due to excessive money printing. This is called inflation. If you have manage...

Moving into Stablecoins? You May Want to Read This...

20 Jun 2021 5 minute read 11 comments AlucardLife

Moving into stablecoins is a good way to hedge against bear markets, to lock in gains, or to just give yourself a weekend breather. But not all stablecoins are created equal, and their stability is not anywhere near guaranteed. Anyone who tells you t...

What are Stablecoins and The Risks Involved.

19 Jun 2021 4 minute read 1 comment changteck

When people talk about cryptocurrency, the majority consensus is that it is a highly volatile and risky asset class that can make you a millionaire overnight or if you are not careful, turn $10,000 into $1 in a matter of minutes, just like the TITAN...

A world where crypto isnt existing.

18 Jun 2021 3 minute read 0 comments Code+231

"I wanted to kill myself... but then i had a cup of coffee" Sartre A thought that occurs to me every time i take a sip of the black juice which diverts your tjiughts on a highway towards my intentions.  The road infront of me,16 years into the future...

Are Tether and Bitcoin related? How Tether affects Bitcoin?

14 Jun 2021 2 minute read 0 comments Crypto Punk

The purpose of Tether is to enable transactions between cryptocurrency exchanges with a rate pegged to the USD. What is more, Tether is the fifth-most widely held coin by value after Ethereum and Bitcoin, and the interest on this crypto is growing ra...

Regulators begin to focus on Tokens, NFTs and Stablecoins - Syscoin is Ready!

13 Jun 2021 1 minute read 24 comments drlove

Recently, an announcement by the SEC of Thailand made headlines. Speculation in assets with 'no clear objectives or substance' are banned from authorized exchanges in Thailand. This is just another step in the direction of regulation. We will see mor...

Syscoin Headlines: Regulations for NFTs are kicking in - and Syscoin is Ready!

13 Jun 2021 1 minute read 0 comments drlove

Recently, an announcement by the SEC of Thailand made headlines. Speculation in assets with 'no clear objectives or substance' are banned from authorized exchange in Thailand. This is just another step in the direction of regulation. We will see more...