Complete List Of Stablecoins
Launched in 2008, Bitcoin offered a new perspective on payments and trading. Since then, hundreds of cryptocurrencies have been launched in the market that people can use to buy assets, make global deals or buy a cup of coffee at their favorite restaurant. However, it is still common to see a cryptocurrency restaurant buy or pay for a dress. It is prominently due to the high volatility of cryptocurrencies. Stablecoin is an attempt for stable price cryptocurrencies as it is backing by assets such as the dollar or gold. Stablecoin, on the other hand, has received a big shock because it is safe, low cost, and, most importantly, price stable. They often represent real money, such as the dollar or the pound, which is an option to go public.
What Are Stablecoins?
Stablecoin markets are nothing new. At the same time, owning one is still beyond the reach of the average person. In short, stable coins are cryptocurrencies whose value ties to other types of external assets. For example, this could be Fiat currency such as the US dollar or commodities such as gold or oil. Why would anyone want to link the price of a cryptocurrency to a commodity or other external asset? Cryptocurrency is the newest medium of exchange, and a commodity like gold is one of the oldest mediums of exchange. Therefore, it seems paradoxical to tie a modern exchange system with old-fashioned assets such as precious metals. On the other hand, some see the encryption of fiat currencies, such as the US dollar, to defeat cryptocurrencies.
Even so, the logic behind this is perfect. The cryptocurrency market has seen significant volatility for a long time. And also, it is most clearly seen by the recent cryptocurrency bull run. While traders may appreciate the wild price changes in cryptocurrencies – especially when the market is pushing to new highs – some investors and companies do not. Instead, they want to be able to predict the assets they have. Even so, owning one is still beyond the reach of the average person. Therefore, the relative stability of Fiat currencies can be seen in the “stable coins” with the technological advantages of cryptocurrencies. The price of gold or the US dollar can also fluctuate, but the day-to-day changes are usually much higher for cryptocurrencies than for fiat currencies. Therefore, the value of cryptocurrencies can eliminate by linking it to a Fiat currency.
List Of Stablecoins
Tether
Tether is the largest and most famous stable coin. According to CoinGecko, Tether’s market capitalization is over $ 32 billion. Also, it makes Tether Stablecoin the third-largest cryptocurrency at the time of writing, narrowly beating Cardano. As a result, Tether has the lion’s share of the stable coin market, with a huge market value of over $ 30 billion. Tether’s history is somewhat complicated. It started life as a cryptocurrency project called “Realcoin,” but it was finally changing back to Tether in November 2014. The main idea behind Tether was to give Fiat money on the blockchain. In summary, this allows for relative price stability and will back up the offering of stable coins by real-life assets.
Tether used a three-person strategy that introduced three stable coins. Besides, Tether is nailing to the euro behind a second stable coin and another to the Japanese yen. Bitfinex was the first company to list Tether in 2015 and the rest, they say, is history. Since Tether is now the third cryptocurrency in market capitalization, it is clear that it has met the current demand for stable coins. At the same time, however, Tether criticized the lack of transparency and the irregularities in the company’s guaranteed reserves. However, since then, Tether has changed its asset backup to include “loans to subsidiaries,” In 2019, it reveals that each Tether was paying an equivalent of $ 0.74.
USD Coin
the USD coin is the official fixed coin of Coinbase and was developing by Circle. According to Coinbase, the USD coin has the full support of the US dollar, verifying by the Circle. The Circle guarantees USDC backup of US dollar-denominated bank accounts by issuing a monthly open audit report. Besides, USDC is an Ethereum based ERC-20 token that allows for use with Defi solutions. The USD coin widely recognizes as one of the leading stable coins in 2017. Although it is still trailing Tether in both market capitalization and circulating supply, it still has a significant market value of $ 7.5 billion. The main advantage of the USDC over the USDT is that the USDC is more transparent about its currency reserves. Also, its relatively regulatory-friendly stance means that it has avoided some of the legal troubles facing Tether.
Dai
DAI is a stable coin created by the MakerDAO platform. It is a stable coin associated with the US dollar and operates with tons of decentralized applications in Ethereum. MakerDAO uses DAI for users to lend and borrow to their platform. And users can pay for anything Ethereum-compatible. So, it has been several years now, and it is one of the only stable coins that is close to the value of one dollar. Developers can create unique applications using the DAI ecosystem. Like Ethereum, this gives DAI unlimited potential.
Palladium Coin
When we speak of precious metals, the stable coin is another stable coin to watch out for in 2021. It is a stable coin powered by Ethereum that ties to the value of palladium. It allows investors to buy assets easily and anonymously. Besides, those who do not want to invest tons of money can buy a fraction of palladium. This feature is not available with traditional metal purchases. It is a great way to invest in safe assets and precious metals in the future.
TrueUSD
TrueUSD is a traditional stable coin against the US dollar. It is a direct competitor to Tether, which is currently facing some regulatory issues. Essentially, Tether refuses to prove that it has dollars to support its stable coins. TUSD denies this by constantly auditing with a third-party group and publishing the results. In this way, it can build trust with the community. If it were to fly, this could be the death sentence for Tether’s shady actions.
EOSDT
EOSDT builds on the EOS blockchain network and provides its first stable coin development process. Also, a user can generate an EOSDT token whenever they want. They then select an asset such as the dollar or precious metal and tie the values together. The token can use to store ownership of physical assets or to trade them.
Paxos Standard
Paxos Standard Coin converts to US dollar. It allows users to transact anywhere in the world with minimum rates and exchange times. It is one of the only stable coin services regulated with the assistance of the New York State Department of Financial Services. The asset also includes Pax Gold, a gold-backed stable coin for investors interested in precious metals.
Binance USD
BinanceUSD is a stable coin developed and maintained by Binance, the world’s largest exchange. It is building on Ethereum and ties to the US dollar. This stable coin serves a slightly different usage situation than the others – it helps with the trading fees in Binance. Buying BUSD makes it cheaper to buy other assets on the platform. The exchange offers tons of discounts for doing so. That, and Finance has added a lot of support so that you can earn interest on your encryption if you choose. Even BUSD is FDIC insured, so there is no risk of losing your money due to theft or other issues.
Gemini Dollar
The Gemini Dollar is a stable coin with the support of the Winklevoss twins Gemini exchange. Similar to Tether and TrueUSD, it ties to the US dollar. GUSD built on the Ethereum blockchain is also regulated by NYDFS. The market capitalization of these assets is over $ 14 million and is insuring by FDIC. Especially, its regulation is a surefire way to entice institutional investors.
