In the cryptocurrency market, volatility is a double-edged sword. On the one side, it can bring massive amounts of profit, but at the same time it can led investors to lose their funds.
Take a look at bitcoin’s price. It went from $20,000 during its peak to below $7,000 during the bear market.
Volatility also prevents cryptocurrencies from going mainstream. Investing in them is highly risky, since the price isn’t stable. To fix this problem, the crypto market needed coins with stable price. And this is how stablecoins were born.
Stablecoins are a type of cryptocurrency that have a stable price pegged to a real-world asset, just like fiat currencies. When it comes to assets backing up a stablecoin, it can be a fiat currency, oil, or gold.
In the recent years, stablecoins became popular, especially among those who aren’t fans of volatility. So, in today’s blog post, we prepared a list of the most popular stablecoins.
Let’s dive in.
Tether – the most controversial stablecoin
First on our list of stablecoins is Tether. It is a well-known cryptocurrency, which has been facing with a lot of accusations and controversies. Some of them include market manipulation and covering up missing funds.
Despite this, Tether remains the first and dominant stablecoin in the crypto space. At the beginning, Tether was pegged to one US dollar, but in March 2019, it was revealed that the stablecoin included loans from affiliate companies as a backing as well.
Libra – Facebook’s cryptocurrency
This is a stablecoin that raised a lot of hype in the crypto community. Libra is a cryptocurrency that is planned to be used in the financial sector, for online payments to be more precise.
This stablecoin is pegged to government-issued currencies such as USD, EUR, YEN, etc. Libra’s wallet should be launched in 2020.
Novem Gold – new way to buy gold
Novem Gold is a stablecoin backed by gold. Its native token is a security token called 999.9, and one token represents .01 gram of gold. The company aims to enable its users to trade gold in a flexible, safe, and easy-to-access way.
At the moment, Novem Gold is conducting an airdrop, worth 3 NVM tokens (~$ 2.50). You can find more details here.
TrueUSD – regulated and transparent stablecoin
Just like Tether, TrueUSD is a stablecoin pegged to the US dollar. However, compared with Tether, it’s less controversial and more transparent. The company’s attestations are public, and anyone can access them.
One of the best things about TrueUSD is that’s legally regulated and guarantees ownership recognition.
MakerDAO – stablecoin pegged by another cryptocurrency
MakerDAO is a decentralized stablecoin offering financial services. It was created in 2017, and it’s backed by Ethereum. MakerDAO is a resilient stablecoin that you can borrow on your own terms.
Just like other stablecoins, MakerDAO allows users to use cryptocurrency without worrying about market volatility.
Final words on list of the most popular stablecoins
Stablecoins are becoming more and more popular, not only in the crypto space, but in other industries as well. Walmart, a supermarket and retail giant, recently hinted that they are working on creating their own stablecoin, following Facebook’s example.
This sent positive news over the blockchain world, and gave one more sign that cryptocurrencies will go mainstream.
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Store of Value, Gold or Crypto? ← P R E V I O U S
N E X T → What is Monero?