Difference between revisions of "Stablecoin"

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A "stablecoin" is a [[cryptocurrency]] that is pegged to, or interchangeable with the value of an asset like gold or fiat currency. For example, [[Tether]], [[Basis]], [[Gemini Dollar]], [[Paxos]] Standard and [[Petro]] are all stablecoins.<ref>{{cite web|url=https://www.forbes.com/sites/shermanlee/2018/03/12/explaining-stable-coins-the-holy-grail-of-crytpocurrency/#2c8d4da94fc6|name=What's The Difference Between A Software Product And A Platform?|org=Forbes|date=August 20, 2018}}</ref><ref>{{cite web|url=https://thenextweb.com/hardfork/2018/08/14/maduro-petro-stablecoin-venezuela/|name=Maduro’s Petro cryptocurrency will be an official currency in Venezuela – like the Bolivar|org=The Next Web|date=August 20, 2018}}</ref>
 
A "stablecoin" is a [[cryptocurrency]] that is pegged to, or interchangeable with the value of an asset like gold or fiat currency. For example, [[Tether]], [[Basis]], [[Gemini Dollar]], [[Paxos]] Standard and [[Petro]] are all stablecoins.<ref>{{cite web|url=https://www.forbes.com/sites/shermanlee/2018/03/12/explaining-stable-coins-the-holy-grail-of-crytpocurrency/#2c8d4da94fc6|name=What's The Difference Between A Software Product And A Platform?|org=Forbes|date=August 20, 2018}}</ref><ref>{{cite web|url=https://thenextweb.com/hardfork/2018/08/14/maduro-petro-stablecoin-venezuela/|name=Maduro’s Petro cryptocurrency will be an official currency in Venezuela – like the Bolivar|org=The Next Web|date=August 20, 2018}}</ref>
  
The concept of stablecoin was tarnished somewhat in October 2018 when suspicions about Tether's integrity led to a fall in price. Tether's price decline to $.87 from its $1 "peg" on October 16, 2018 was approximately contemporaneous with a sharp increase in the value of the Gemini Dollar to $1.19 from its $1 "peg."<ref>{{cite web|url=https://www.bloomberg.com/news/articles/2018-10-15/dollar-peg-that-underpins-20-of-crypto-trades-is-under-pressure|name=Crypto Markets Roiled as Traders Question Tether's Dollar Peg|org=Bloomberg|date=October 15, 2018}}</ref><ref>{{cite web|url=https://www.coindesk.com/winklevoss-backed-stablecoin-soars-above-1-as-tethers-market-cap-plunges/|name=Winklevoss-Backed Stablecoin Soars Above $1 as Tether's Market Cap Plunges|org=Coindesk|date=October 17, 2018}}</ref>
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The concept of stablecoin was tarnished somewhat in October 2018 when suspicions about Tether's integrity led to a fall in price. Tether's price decline to $.87 from its $1 "peg" on October 16, 2018 was approximately contemporaneous with a sharp increase in the value of the Gemini Dollar to $1.19 from its $1 "peg."<ref>{{cite web|url=https://www.bloomberg.com/news/articles/2018-10-15/dollar-peg-that-underpins-20-of-crypto-trades-is-under-pressure|name=Crypto Markets Roiled as Traders Question Tether's Dollar Peg|org=Bloomberg|date=October 15, 2018}}</ref><ref>{{cite web|url=https://www.coindesk.com/winklevoss-backed-stablecoin-soars-above-1-as-tethers-market-cap-plunges/|name=Winklevoss-Backed Stablecoin Soars Above $1 as Tether's Market Cap Plunges|org=Coindesk|date=October 17, 2018}}</ref>
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In a statement published on its website on December 13, 2018, the issuer of Basis, Intangible Labs, announced that it was returning investor monies and shutting down Basis stating, "Unfortunately, having to apply US securities regulation to the system had a serious negative impact on our ability to launch Basis."<ref>{{cite web|url=https://www.basis.io/|name=Letter to Basis Community|org=Intangible Labs|date=December 14, 2018}}</ref> 
 
   
 
   
 
== References ==
 
== References ==

Revision as of 17:49, 30 May 2019


A "stablecoin" is a cryptocurrency that is pegged to, or interchangeable with the value of an asset like gold or fiat currency. For example, Tether, Basis, Gemini Dollar, Paxos Standard and Petro are all stablecoins.[1][2]

The concept of stablecoin was tarnished somewhat in October 2018 when suspicions about Tether's integrity led to a fall in price. Tether's price decline to $.87 from its $1 "peg" on October 16, 2018 was approximately contemporaneous with a sharp increase in the value of the Gemini Dollar to $1.19 from its $1 "peg."[3][4]

In a statement published on its website on December 13, 2018, the issuer of Basis, Intangible Labs, announced that it was returning investor monies and shutting down Basis stating, "Unfortunately, having to apply US securities regulation to the system had a serious negative impact on our ability to launch Basis."[5]

References