What is Stablecoin, and what kind of Stablecoins are on the market now
Crypto market of 2018 was extremely sluggish. People are more interesting in stablecoin because it is a better way to avoid risks and keep cryptocurrency valuations stable.
So what is Stablecoin, and what kind of Stablecoins are on the market now?
Stablecoin is a crypto asset that is able to act as a stable store of value designed to minimize the effects of price volatility. It is generally pegged with USD with 1:1 ratio. There are successively other Stablecoin appear in Crypto world. The most famous and the first one has a concept of stablecoin is USDT.
According to incomplete statistics, there are a total of 57 Stablecoins on the blockchain. In this article, we will briefly introduce several types of Stablecoins that are relatively popular in the market.
1.USDT
Tether USD, short for USDT, is the first Stablecoin released by Tether on 2015. Because USDT is ‘tethered’ to the U.S. Dollar at a 1:1 ratio. It only floats with the US dollar exchange rate, so that to keep cryptocurrency valuations stable, making a good value-preserving token in the volatile cryptocurrency market.
Every crypto traders can only exchange one crypto to another before the advent of USDT, they could not directly convert crypto into USD Dollars and other legal currencies. The emergence of the USDT provides a channel for users to exchange tokens to real currency. You can exchange your btc, eth, eos, and all other cryptos to USDT first, and then you can exchange the usdt to usd though Tether or other platforms such as Epay.
2.TUSD (True USD)
Issued in March 2018, according to the definition of its official website (https://www.trueusd.com/), TUSD claims to be “USD-backed ERC20 standard stablecoin”. The user can redeem the USD with the same amount of TUSD. Tether has been questioned for the stability of USDT because there is no evidence that every USDT is backed by 1USD. But TUSD directly published the third-party account audit reports to the public. The current total value of TUSD is about 50 million US dollars, while USDT is more than 2 billion US dollars. Will TUSD continue to grow and replace the status of USDT?
3.USDC(USD Coin)
USDC is also a stablecoin always valued at a 1-to-1 ratio with the US dollar, It is issued by Circle based on the CENTRE. They claim that every USDC issued, they will be backed by a US Dollars in their reserve bank account (Silvergate Bank), which is exactly the same as USDT. The emergence of USDC gave more choice of Stablecoin for users. According to Circle’s announcement, they emphasize that the there are more than 30 exchanges ready to offer USDC trading, Including Poloniex, OKCoin, KuCoin, Digifinex, Coinplug, XDAEX and CoinEx and so on.
4.PAX (PaxosStandard)
As the world’s first government-approved and regulated coin, PAX has received much attention since its launch. PAX anchors the US dollar at 1:1 just like USDT. But unlike Tether, Paxos is doing better on finance. Audited by Withum, a well-known American audit company, and publish audit reports every month. Since the approval of the New York Financial Services Department on September 10, PAX has quickly gained worldwide recognition.
5.EUSD(EpayUSD)
Recently, a new stablecoin released by an international third-payment company named Epay has received lots of attention. It has been listed on Nearex, Bithunex, and STEX exchanges at the time it is launched. EpayUSD(EUSD) can be said to be the product of Epay’s accumulation in the financial and cryptocurrency industries. It is the official asset token of the platform and is always valued at a 1-to-1 ratio with the US dollar. EUSD will act as an accounting symbol in Epay global Remittance Network to accelerate capital transactions and circulation process. And to build the circulation value itself. This is the first stablecoin which has a practical application scenario.
According to CoinMarketCap data, USDT is still ranked first in the stablecoin list due to its first-issue advantage;
The second is picked by TureUSD, with a volume of $75,221,209 in 24 hours.
PAX ranked third with $60,586,371 USD, the only stablecoin that is regulated on top 3.
Stablecoin is not only as simple as an intermediate token now. In the face of the huge digital currency market, the status of stablecoin is more and more important. How will it develop, and whether there is a stablecoin can replace the position of USDT in the future, let us just wait and see.