Because of their nature, stablecoins have become one of the most crypto newbie-friendly assets on the market now. With almost 200 stablecoins in circulation, finding the right one can be overwhelming and exhausting. That’s exactly where CoinLaunch comes into play! CoinLaunch is a premier crypto ranking platform that constantly scours the Internet for upcoming ICO, IDO and IEO projects, analyzes and then presents them in a form of a ranked list. Thanks to our specially developed rating system, we are able to evaluate a token's potential based on 80+ factors, which is extremely helpful for getting a holistic overview of the projects as well as for making comparisons. Start using CoinLaunch today to become one of the first holders of the next blue-chip tokens!
Stablecoins combine the advantages of using cryptocurrencies and fiat money: almost no volatility, transparency, security, low transaction fees, and privacy. It makes them a lucrative value storing or investment opportunity for many modern investors.
It is very common for stablecoin holders to have a blind trust towards this type of assets, since they lack extreme price fluctuations and may seem like the most reliable cryptocurrency. However, the blowup of Terra's UST has proved everyone wrong.
You can never know whether a certain cryptocurrency is going to collapse, but you can filter out the ones that seem promising and are here to stay. This is exactly what we do here! CoinLaunch is a top-tier crypto ranking platform that reviews and analyzes existing and upcoming ICO, IDO & IEO stablecoins and presents them in a form of a comprehensive ranked list. Be the first to uncover ambitious crypto projects with the help of our CoinLaunch Score - a rating system that takes 80+ token-related factors into consideration and provides a holistic overview of the target stablecoin.
Stablecoin is a special type of cryptocurrency that was designed to reduce volatility and maintain price stability by tying up its value to a fiat currency, commodity or other digital asset.
Within the blockchain network, the digital form of a fiat currency isn’t recognized. People needed a cryptocurrency with a price stability of a fiat money.
The entity behind a stablecoin would often set up a "reserve" where it safely holds a number of assets supporting the value of a stablecoin. But not all stablecoins work this way - some digital assets use a burning algorithm to keep the value of the coin in line with the desired price.
As mentioned earlier, stablecoins are considered one of the most reliable ways to hold cryptocurrency since they are prone to extreme price fluctuations and high volatility. Because of that, people subconsciously place too much trust into this type of assets and forget that they still invest in cryptocurrency. However, whether a stablecoin is safe or not is determined by how it is backed, its issuer, and the risk of future laws and regulations affecting the stablecoin. CoinLaunch makes your due diligence easier by presenting a comprehensive research and a score on each stablecoin from our curated list.
In a nutshell, stablecoins enforce the formation of a reliable and stable environment that is meant to increase trust in cryptocurrencies and eliminate speculation in digital assets. Stablecoins are as stable as fiat money, yet as secure and decentralized as cryptocurrencies, which makes them a perfect fit for everyday operations and value storage.
Stablecoins allow you not to worry about price volatility. If the value of a stablecoin shifts dramatically, the regulatory authorities will begin to manage supply/demand of the asset through the means of the burning algorithm or the “reserves” of commodity/fiat money to keep the price of a digital asset in line with a target price.
SEC Chairman Gary Gensler has previously stated that he believes some stablecoins are securities that must be registered and subject to further regulatory monitoring.
While no legislation governing stablecoins has been passed, top U.S. House legislators made significant work on a proposal last year that would bind stablecoin issuers to some prudential banking regulations.
Stablecoins combine the advantages of using cryptocurrencies and fiat money: transparency, security, low transaction fees, and privacy. But the main advantage is the absence of extreme volatility by linking their value to other stable assets: fiat currencies (national currencies that are used daily) or commodities (precious metals, oil).
Here are three main benefits stablecoins bring to the table:
1) Price stability. While other cryptocurrencies may fluctuate in value, the price of stablecoins should not change.
2) Speed and transparency of operations. Generally, blockchain transactions are faster than traditional bank transfers.
3) Crypto-newbie friendly assets. The cryptocurrency that has its value pegged to a commodity or a fiat money attracts a lot of people that want to participate in the crypto world but fear investing in volatile digital assets.
Tether (USDT) is one of the first stablecoins, and probably the most well-known. It is, in fact, is the largest and most actively traded stablecoin in the world, with a market cap of $83.35 billion as of June 2023, according to CryptoRank.
The second most popular stablecoin is USD Coin (USDC), a digital stablecoin pegged to the United States dollar, with a market cap of $28.98 billion. The issuer of the USD Coin, Circle Internet Financial, is a licensed and regulated entity by the New York State Department of Financial Institutions to provide virtual currency services.