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.
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."
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."
- What's The Difference Between A Software Product And A Platform?. Forbes.
- Maduro’s Petro cryptocurrency will be an official currency in Venezuela – like the Bolivar. The Next Web.
- Crypto Markets Roiled as Traders Question Tether's Dollar Peg. Bloomberg.
- Winklevoss-Backed Stablecoin Soars Above $1 as Tether's Market Cap Plunges. Coindesk.
- Letter to Basis Community. Intangible Labs.