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 good side of Libra

12 Oct 2019 1 minute read 6 comments raven

My last post about Libra had a tone of criticism. As many others, I am wary of Facebook (for many reasons) and I think Zuckerberg is much too sly. But I don't want to enter in politics here, so let's talk about some possible positive aspects of Libra...

Will cryptocurrencies replace current currencies?

8 Oct 2019 1 minute read 1 comment BitMarian

What are cryptocurrencies and how do they work? Cryptocurrencies are a digital currency accessible to all users of the world. There are currently more than 1,300 and over the years they have gained more and more value. Most of them are based on block...

Stable coin might get regulated under pressure

6 Oct 2019 1 minute read 0 comments CryptoArgha

Cryptocurrency became a essantial part of daily life now   In most cases we use crypto as payment like shopping online, paying for goods, paying rent and electricity bill or paying tax   Among them Stable coins are quite famous for this  type of work...

What is Tether USD (USDT)? The Stablecoin Fiasco.

5 Oct 2019 14 minute read 6 comments CryptoBoomer

"The underlying cause of the crash will be found in the preceding months and years, in the progressively increasing build-up of market cooperativity, or effective interactions between investors, often translated into accelerating ascent of the mark...

ECB’s Head Mario Draghi Shares his Views on Cryptocurrencies

29 Sep 2019 2 minute read 1 comment Cryptos.com

FRANKFURT – On September 28, the president of the European Central Bank (ECB) Mario Draghi responded to Europan Parliament member Eva Kaili’s July letter asking the president to provide his views on the potential of cryptocurrencies such as Bitcoin,...

Coinbase’s USDC Celebrates it’s One Year Anniversary

28 Sep 2019 1 minute read 0 comments Cryptos.com

What is USDC? Created by Coinbase and Circle, USD Coin is a lot like Tether (USDT) as it’s referred to as a stablecoin. That means it is pegged to the US dollar, which is held in a bank account, and is always worth at least $1 when you swap it. USDC...

What is Maker (MKR)? [A Comprehensive Guide to Understanding Maker]

27 Sep 2019 7 minute read 2 comments Mr.CryptoWiki

Cryptocurrencies, in the classical sense of the word, are intended to be used as a means of payment. Take Bitcoin for example, in the Bitcoin whitepaper Satoshi Nakamoto called Bitcoin a peer-to-peer electronic cash system. Many other cryptocurrencie...

What Is TrueUSD (TUSD)? - [A Comprehensive Guide to Understanding TUSD]

25 Sep 2019 8 minute read 2 comments Mr.CryptoWiki

Image source: https://www.trusttoken.com/trueusd TrueUSD is one of the largest stablecoins in the crypto market. It’s the fourth biggest stablecoin in terms of market cap (behind USDT, USDC, and PAX) and the second best stablecoin in terms of daily...

4 Most Important Crypto News You Should Know Today (19 Sep 2019)

19 Sep 2019 4 minute read 2 comments Brawnd0

As we head into the last quarter of 2019, a year which has seen significant improvement in the fundamentals of the market, a lot continues to happen that has crypto enthusiasts hopeful for the prospects of a great bull run in 2020. We are halfway to...

Binance gets U.S patient for binance stable coin

19 Sep 2019 1 minute read 2 comments CryptoArgha

Binance recently launched their own stable coin Busd by partnerinh with another fiat backed stable currency name paxos Binance submitted a request for a payment patient to operate in the united states of America BUSD is backed by multiple stable cryp...