In order to compensate for the volatility of the collateralized cryptocurrency, a security pledge is required by the stablecoin. This means that the coin will not have a 1:1 ratio towards the collateral crypto; it will look more like a $2 USD pledge for every $1 USD stablecoin issued. Non...
A crypto-backed stablecoin can be issued to launch one asset on a different blockchain. For example, Wrapped Bitcoin (WBTC) is a stablecoin backed by Bitcoin issued on the Ethereum blockchain. Alternatively, cryptocurrency-backed stablecoins can track the value of a fiat currency through balancin...
USDC is traded on Coinbase, Poloniex, Binance, and other major exchanges like Huobi and Serum Dex. The stablecoin can also be used in several decentralized finance protocols. For example, you candeposit it in BlockFi and earn interest. Traders find it useful to hold USDC as a stable asset ...
A crypto-backed stablecoin can be issued to launch one asset on a different blockchain. For example, Wrapped Bitcoin (WBTC) is a stablecoin backed by Bitcoin issued on the Ethereum blockchain. Alternatively, cryptocurrency-backed stablecoins can track the value of a fiat currency through...
J.R. Willett, a member of the early Bitcoin community, is considered the inventor of stablecoins. He came up with the idea of asset-pegged cryptocurrencies in 2012 and mentioned it in thewhite paperfor his MasterCoin protocol. The first stablecoin was BitUSD, a crypto-backed stablecoin th...
Now exploring the facts such as they have a pegged value and achieve their price stability through algorithmic means of trading systems are known to be stable coins in the crypto world. But how did the stable coin come into evaluation and existence is the point which we w...
Two of the most popular stablecoins are USD Coin (USDC) and Tether (USDT), which are pegged to the U.S. dollar. The dollar is significantly more stable than a cryptocurrency like Bitcoin or Ether. However, you should note that neither of these coins is backed by the United States govern...
Are stablecoins actually stable? Crypto creators have marketed stablecoins as safe and predictable, but as investors discovered this month that is not always the case. Although it's pegged to the U.S. dollar, for example, the stablecoin terraUSD fell to $0.77 this week. Luna, another dollar...
Cryptocurrency asset-backed stablecoins are backed by other cryptocurrencies, such asBitcoinor Ether, whose blockchain is generated by the Ethereum platform. Less centralized than traditional asset-backed stablecoins, these crypto assets are held insmart contractsand aren’t subject to the same vulnera...
In the offline world, there are reports of stablecoins being used for cross-border transfers in places where access to dollars is limited. To which assets are they pegged? The vast majority of stablecoins are pegged to fiat currencies. The issuers of tether, USD coin and binance USD, the ...