Top 7 Stablecoins
Almost 10 years have passed since the advent of bitcoins, but the actual problem of the main cryptocurrency rate fluctuations has not been solved yet.
At first, the exchanges themselves registered bank accounts and carried out fiat transactions through them (dollars, euros, etc.). Then the regulation in this area tightened the scheme. Primarily influenced by the US government and the SEC, which obliged banks to control and verify activities of customers and their counterparties. Since then, Tether (Tether USD) managed to light up with USDT, who shifted work with fiat on its own. The exchanges could only add a reinforced virtual dollar to their coin list and the problem is solved. But it was not as easy as it seemed. Recent problems with USDT have confirmed the fears of crowd, how crypto-industry is flimsy, based on one offshore company that prints unsubstantiated dollars.
Today we will analyze top Stable Coin - cryptocurrencies that are tied to the dollar and promise at any time the opportunity to exchange a coin for a dollar with a rate of 1 to 1.
Tether USDThe USDT is the leader and pioneer in the world of stable coins and crypto active assets pegged to the US dollar. The founder and owner is the Chief Executive Officer of Bitfinex, which fully controls the emission of USDT tokens, as well as tokens support with real money.
There have been a lot of rumors about Tether Limited and Tether International Limited, which were created to circumvent the legal aspects of working with US citizens. One is still not clear whether the USDT issue is secured with money in a bank account. In early 2018, the crypto community tried to force the Tether management to conduct an independent audit, but it was never done. Instead, the management of Tether was told that the usdt tokens are backed up by cryptocurrency, which in itself is absurd.
In October 2018, Tether’s problems resurfaced against the bankruptcy of the Puerto Rican bank. The USDT rate sank first by 2%, then by 20% against the dollar. Then it stabilized at around 10% of the dollar rate. At the moment,
Tether is supported by almost all major cryptocurrency exchanges including Bitfinex, Binance, Okex, Huobi, IDax and others.
USDT capitalization: more than 2.5 billion US dollars.
True USDTUSD (True USD) - The first company after the USDT that realized how to print its cryptodollars and that the demand for them will grow up. And the were right. TUSD tokens quickly gained popularity and were listed on such exchanges as Bittrex and Binance. Cryptocurrency TUSD guarantees the reinforcement of their coins with physical dollars and that anyone can exchange TUSD through the company Trust Token Project itself. It is not clear how the company is registered legally and through which bank it operates. The project was founded by Raphael Cosman, Stephen Cade and Danny An. The company's auditor is Cohen & Company, with whom TUSD reports monthly. The possibility of smart contracts and escrow accounts has also been added. In general, TUSD has a greater impression than the USDT, but still is not a panacea for all issues with Fiat in the crypto industry.
The course in October 2018 also sank in relation to the USD by 7%, which does not inspire confidence. At the expense of capitalization and liquidity, TUSD cannot yet argue with the leader, USDT, but the trend in recruitment is growing.
TUSD Capitalization at the end of 2018 - $ 145 million
Main exchanges: Binance, Bittrex, DigiFinex, Okex
USD CoinUSDC (USD Coin) - a coin that embodies the dollar and cryptocurrency. USDC is the brainchild of Circle, which bought the Poloniex exchange and so did not gain the support of other exchanges. Latocen and Kucoin have listed USDC, but the coin simply does not have liquidity.
USD Coin is designed and maintained by CENTER, which promises to replenish and withdraw tokens to bank accounts and with a guaranteed exchange rate to the dollar 1: 1 The USDC coin chart shows that it is not so stable. The drawdown to the dollar is up to 7%, and the purchase of tokens by the CENTER company is something mythical.
USDC market capitalization: $ 9.6 million
Main exchanges: Poloniex, Kucoin, Latoken
Gemini usdGUSD - Gemini USD Crypto dollar from the Gemini Exchange and the Winklevos Brothers. The Gemini Dollar is registered with the Gemini Trust Company, LLC in the state of New York, USA and activities in the United States are completely legal, which pleases.
The managers of this project hired a whole bunch of auditors:
- The auditor of funds availability on the company’s accounts is BPM, LLP, which monthly checks balances and compares it with GUSD tokens issue.
- Security auditor - Trail of Bits, Inc., who check the code and regularly monitor network security.
Address of the ethereum on which the GUSD coin issued:
This does not add any novelty to the project and user confidence. Apart from Gemini, this stable coin was not added anywhere, and after a drawdown of the exchage rate by 7% of the coin, which is declared stable and rigidly tied - its future completely under the question.
Gemini USD drawdown 7% (Picture)
GUSD market capitalization: $ 1.2 million
Exchange: Bibox, HitBTC
DAIDAI - Stable Coin from the project MakerDAO. Its rate is also equal to one USD. The peculiarity is that it is completely decentralized and works on smart contracts. The point is very simple - let's say you have the ether on a cold wallet. You can send it to a smart contract as collateral and get a DAI token. Having invested 1 ETH you get 50-60% of its value in USD. These tokens can be brought to Bitfinex and sell for $. This method is an alternative and not quite as we took dollar coin. With the growth of the eth, you can always return the invested funds and make money on the DAI received on bail, and in case of a fall there will be losses. Although the system itself will sell ETH if market falling down. By the way, the MKR token on which the project is based took 22th place in the rating of cryptocurrencies with a capitalization of more than $ 500 million, and the stable DAI coin - 63 million.
DAI Market capitalization: 63 million
Exchanges: HitBTC, Ethfinex, OasisDEX
PaxosPAX - Paxos Standard Token. Cryptocurrency with a market capitalization of $ 35 million. The presence of a license of the State of New York is noted for this startup, it works under the supervision of the SEC. After verification on the company's website, it is possible to buy and sell tokens directly from their creators.
The project itself is based on the ERC-20 platform and is built on the platform of ethereum. Also noted is a statement about the lack of a commission within the system and the availability of user support.
PAX market capitalization: $ 35 million
Exchanges: HitBTC, Ethfinex, OasisDEX