The popularity of stable cryptocurrencies (stablecoins) is due to their ability to bring some stability to the world of cryptocurrencies. We present to your attention an overview of the current position of stablecoins on the market and their possible prospects.
Stablecoin: Definition and Varieties
Stablecoins in translation means “stable cryptocurrencies”. Their feature is low volatility, which is achieved by pegging to traditional assets (most often – to the US dollar or gold).
Stablecoins allow you to eliminate some of the disadvantages of cryptocurrencies, which are often the reasons for refusal to work with cryptoassets. In particular, with the help of stablecoins, the following is realized:
- simplification of the exchange of cryptocurrencies for fiat and vice versa;
- elimination of the risks of excessive fluctuations in the rate of cryptocurrencies without refusing to work with digital assets.
Stablecoins may differ in the type of collateral, which include the following:
- pegged to fiat currency;
- provision with the most stable cryptoassets (usually a basket);
- provision with precious metals, oil and other resources.
Despite the obvious advantages of working with stablecoins, they also have some disadvantages.
This period of user uncertainty (trust the company or not?) Is an opportune time for all of Tether’s competitors, who have no tarnished reputation and whose financial side is much better debugged than the pioneering stablecoin.
Among the competitors of Tether, TrueUSD (TUSD) stands apart, which is now in 45th place in terms of capitalization. For six months of its existence, this cryptocurrency has been able to enlist the support of a large number of users and become a popular alternative to USDT. The maximum fluctuation in the price of this cryptocurrency is now about $ 0.03, which is negligible not only for stablecoins, but also for the traditional financial market. TrustToken, which initiated the creation of TUSD, is a very promising project. Its activities are aimed at creating a connection between the traditional and cryptocurrency financial markets.
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Below is a cryptocurrency stablecoin list, the most popular stablecoins with links to get an overview of their current price:
- Gemini Dollar (GUSD) GUSD tokens of the ERC-20 standard are issued by the American cryptocurrency exchange Gemini. Turnover is regulated by the New York City Financial Services Authority (NYDFS). Gemini provide their clients with dollar deposit insurance options. By the way, against the background of Tether’s problems, the absolute maximum of GUSD was recorded on October 16, 2018. The coin managed to grow to $ 1.19 for a while.
- Tether (USDT) The cryptocurrency exchange Bitfinex is the beneficiary of the USDT stablecoin. The coin was issued by Tether Limited, according to which the backing of the coin is based on US dollars. Recent excitement, triggered by a wave of rumors about problems around the stablecoin, briefly pushed its price down to $ 0.92.
- Paxos Standard (PAX) PAX, a stablecoin issued by Paxos startup, whose capitalization has recently exceeded $ 50 million, is regulated by the New York City Financial Services Authority (NYDFS). The Paxos Trust is fully controlled by the US Securities and Exchange Commission (SEC). Accordingly, all users wishing to purchase PAX can be sure that the transaction will fully comply with the requirements of the current legal framework.
- TrueUSD (TUSD) TUSD released by TrustToken. It is a coin based on USD exchange rate support.
- BitUSD The stablecoin of the BitShares cryptocurrency exchange. BitUSD, in terms of its technical characteristics, is more suited to the definition of a stock token.
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