Stablecoin News

One of the hindrances to mainstream cryptocurrency adoption is price volatility, as these assets are freely traded in the open market without central administrators tasked with maintaining price stability. The anticipation of potential losses and gains has hindered cryptocurrency’s use as a medium of exchange. Stablecoins, however, are cryptocurrencies designed to maintain a stable value over time, making them ideal for commercial transactions. 

The introduction of stablecoins in the cryptocurrency market ushered in a new wave of liquidity, as exchanges were able to provide trading pairs with tokens representing traditional fiat currencies. 

Stablecoin design takes many different forms, each with its own tradeoffs: 

  • Reserve-backed stablecoins: Cryptocurrencies pegged to the value of a fiat currency held in reserve by a company or consortium. E.g., Tether (USDT), USD Coin (USDC) and Paxos Standard (PAX). 
  • Collateralized stablecoins: Tokens backed by other cryptocurrencies that retain a one-to-one value with a fiat currency through over-collateralization to absorb potential volatility of the underlying assets. E.g., Dai and BitUSD. 
  • Algorithmic (seigniorage supply) stablecoins: Rather than using a reserve or collateralization to maintain a stable value, these stablecoins are facilitated through an automated expansion and contraction of the monetary supply, emulating the role of central banks in the fiat economy. E.g., Basis.
Newsletter
Officials from all over the world continue discussing the solutions for stablecoins' risks
Law Decoded: The long waves in the aftermath of UST’s crash, May 16-23
David Attlee
2022-05-24T07:00:00+01:00
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Altcoin Watch
FTM price recovers from its May 12 low after the launch of the fUSD stablecoin and the possible return of Andre Cronje.
fUSD stablecoin launch and rumors of Cronje’s return send Fantom (FTM) price higher
Jordan Finneseth
2022-05-23T21:15:00+01:00
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News
Upon a persistent request from the Terra community, Kwon went against his initial plan and publicly shared a burn address for LUNA on Saturday.
Do Kwon shares LUNA burn address but warns ‘LUNAtics’ against using it
Arijit Sarkar
2022-05-23T09:34:58+01:00
20072
Expert Take
Spoiler: No, stablecoin issuers do not guarantee the legal right for users to claim fiat currency back.
Do you have the right to redeem your stablecoin?
Oleksii Konashevych
2022-05-21T06:18:00+01:00
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News
The United Kingdom’s Economic and Finance Ministry announced in April that it would work to incorporate stablecoins into a regulatory framework on digital asset...
FCA will ‘absolutely’ consider recent stablecoin depegging when drafting crypto rules: Report
Turner Wright
2022-05-20T22:15:00+01:00
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Analysis
The quest continues for the perfect “stand in” for the U.S. dollar. But, UST’s crash suggests that algo stables may be “inherently fragile.”
UST aftermath: Is there any future for algorithmic stablecoins?
Andrew Singer
2022-05-20T14:07:00+01:00
3759
Altcoin Watch
ATOM's ascending triangle setup opens up the possibility for another major crash by June 2022.
Cosmos price rebounds 45% in one week despite Terra's debacle — What's next for ATOM?
Yashu Gola
2022-05-20T13:44:08+01:00
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Newsletter
DAI has been around since 2017, which no algo stablecoins has ever matched, and it’s unlikely to share the fate of UST.
Algorithmic, fiat-backed or crypto-backed: What’s the best stablecoin type?
Cointelegraph Consulting
2022-05-20T12:56:40+01:00
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