Stablecoins have been the complete blowout in this year with dozens in circulation bearing names like Basis, Dai, Carbon, Tether, Sagacoin, and TrueUSD. Just this month, two more came into the market. The two new in the market are the Paxos Standard token and the Gemini Dollar. They both received regulatory approval from the NY Department of Financial Services.
Stablecoins are either backed 1:1 with fiat currency or employ an algorithm that always adjusts supply based on the activity.
Stablecoins have the technological features of cryptocurrencies but unlike they are traditional cryptocurrencies which trade at fluctuating rates. The value of a stable coin is stable regarding dollars by making these attractive as units of account and stores of value.
A decentralized autonomous organization overseen a stable coin is called nUSD. It agrees that there is a bright future ahead for the new type of cryptocurrencies. The founder of Havven, Kain Warwick believed that will be the key to the growth of the boarder blockchain ecosystem.
A decentralized autonomous organization overseen a stable coin is called nUSD. Founder of Havven, Kain Warwick agrees that there is a bright future ahead for the new type of cryptocurrencies. He also believed that it would be the key to the growth of the boarder blockchain ecosystem.
Stable coins can be useful in particular cases. They are not the best choice for an investor looking for a cryptocurrency that can hold and increase in value. Stable coins which are pegged to other crypto are also impacted by their local economies and monetary policy. They are interfering with the coin’s ability to rise in the value.
Stablecoins are backed by fiat and centralized. The stablecoins which are fiat backed needs to be stored in any centralized banks. It is running the risk of involvement from the governments. The optimal stable coin is stable, decentralized and scalable.