As part of CP Processors’ series HOW STABLE COINS WORK , we are performing stablecoin reviews of chosen most notable and active stablecoins to day. This is all part of our stablecoin initiative, done in the effort to further raise awareness on stablecoins in general, and help people understand how they work and what is their overall potential. Our fifth review was performed on the stablecoin Tether (#USDT), no1 stablecoin by market cap. This review will clearly show main differences between this stablecoin and its top competitors. Read more - https://medium.com/cp-processor/stable-coin-review-tether-usdt-9d7f3908c910 |
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As part of CP Processors’ series HOW STABLE COINS WORK , we are performing stablecoin reviews of chosen most notable and active stablecoins to day. This is all part of our stablecoin initiative, done in the effort to further raise awareness on stablecoins in general, and help people understand how they work and what is their overall potential. Our fifth review was performed on the stablecoin Tether (#USDT), no1 stablecoin by market cap. This review will clearly show main differences between this stablecoin and its top competitors. Read more - https://medium.com/cp-processor/stable-coin-review-tether-usdt-9d7f3908c910 |
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Nice writeup. While I don't follow Stablecoins all that closely it definitely is interesting to see a comprehensive list of approaches at controlling volatility.
I'm not quite convinced that stability can be reliably achieved within tolerance levels that are acceptable for the general populace (say, < 5%) but they do give an opportunity to look at market forces in wholly new ways.
I don't really find the reason how stable coins are beneficial in the market? Can someone quote and answer this question? but I guess this stable coins will going to help large business investors who entered the market. There are many benefits for using stablecoins They can be: 1.Tool for traders (hedge against volatility) 2. Long term asset stability for investors 3. Currency to facilitate cross border payments... |
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How do you explain this phenomenon that no one really likes these centralized stablecoins, yet they are the ones with the greatest market cap among stablecoins?
Yeah, those thing is unfamiliar to me. Maybe, I need to know more about this crypto currency ( all I knew is tokens and altcoins ). That's why I always visit some website like coinmarketcap.com and etc. I am well satisfy on those website if I want to monitor those stable altcoins where I invest with. But this thread caught my interest as a crypto user, please give me time to know it. Stablecoins are a specific type of cryptocurrency. They are designed to always hold its peg. For example, if they are fixed to a dollar peg, their price should always be 1 dollar. If you check those stablecoins on coinmarketcap, you will see that their price is always 1 dollar (or in the near vicinity of a dollar). USDT, USDC, TUSD, GUSD, PAX are the ones to check. They have the greatest market cap right now, and they are all fiat collateral type of stablecoin. There are two more types of stablecoins - crypto collateral, and algorithmic, but for some reason they are not widely accepted in this ecosystem. |
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How do you explain this phenomenon that no one really likes these centralized stablecoins, yet they are the ones with the greatest market cap among stablecoins?
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I have already said many times that projects that are now trying to develop stable coins in the future can simply close very quickly, because the regulation simply does not exist today, and as you know, where there is no regulation, there can be anything
There are several initiatives to regulate stablecoins and they are actively working on it. Some form of regulation in this sphere will happen in the following months. |
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In fact, the total delivery of the USDT token may change at any time when the project team decides to release an additional amount of its coins. But I think that the total number of coins is not so important, since their price is still tied to the dollar price and this will continue, regardless of the supply of coins, because this is a typical stablecoin.
As we have stated in our review of the TUSD, their platform mints new coins when a user send funds to them. Minimum purchase amount on their platform is 10.000 USD. The same goes for redemption process. |
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I see a lot of daily traders using USDC when crypto prices go down a lot, and return the pair to crypto coins when prices rise. this will provide an important role for the USDC in the market and their volume will continue to expand and if it becomes very large it's like a time bomb for crypto. stable coins backed up with USD even though I'm not 100% sure it's true
Stablecoins are good only they are having exact value backup for their circulating coins. But, we need to consider that all the governments are printing money only based on their gold reserve ? As far as I am concerned, many big government also not doing so. They are simply manipulating based on their situations and requirements then why not those stablecoins devs too. Tether is showing out periodically their audit reports, but I'm not sure how crypto people are crosschecking it with respect to total circulating coins. The rise of stablecoins may disturb the entire balance of this crypto-space but this also a part of this decentralized environment. and particularly we cannot do anything about that. Because, here even utter jokes are finding it's success and proper projects are failing down. Promotions alone are enough for achieving all the needed things. Sadly, that is true. Noone is really checking the technology behind a project. Promotion is what matters the most |
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First off, thanks for your explanations! Now, it's an understandable move on the part of the issuers of new "stable" coins, to make new ones for people to buy. But what makes them(issuers) so sure people would buy them? If there are people who love those coins so much why wouldn't they stick to the old ones? It is always risky to invest in something new and untried, and seeing that USDT has been around for some time, why look for other options? Normally, although taking risks, people expect big gains when investing in new altcoins. But what gain can one expect investing in a "stable" coin? Oh really late on this .... But you could easily force people to do so when you have an exchange to back you up and they can acquire it pretty easy. Then you either force the other stable coins out and introduce your own or just make sure to manipulate volume so they move to it. Then other exchanges will add your coin (via bribery or pure out of customer demand) and you're set. And GS has both the power and the money to make it happen. USDT has been around for a long time but...at 96 cents it was;t that much of a stable coin. I lost track of Stablecoins, how many are there now?
Too many  And be prepared to have some more. A friend told me that some exchange in Romania has launched its own stable coin or stablelion. (god how this sounds in English ). Latest count said there are 150 stablecoins right now, but only a handful are active and trading |
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