Top 5 Stablecoins. All you need to know

Despite the overwhelming negative attitude of investors to cryptocurrencies during most of 2018, the industry continues to experience rapid technological development, which should improve some aspects of this relatively new sector.

Over the past 18 months, various projects have performed the challenging task of limiting volatility, releasing so-called stablecoins.
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Unlike traditional cryptographic tokens, stablecoins are designed to maintain a stable value against an asset or currency at any time. Many stabilcoons use the US dollar as a value guide.

Most of the stablecoin on the market today is pegged to currencies such as the US dollar or the euro, with some exceptions noted below.

Although there are many stable coins on the market today, we have narrowed our list to five, taking into account popularity, size and uniqueness.

Tether (USDT)

The USDT is the king of the steakblockins, overshadowing all of its competitors in terms of volume, market capacity and availability. In fact, the USDT token is so common that its daily trading volume now exceeds all cryptocurrencies except bitcoin.

This coin is issued by Tether Limited and is pegged to the dollar. Each token is equivalent to one dollar, and must be provided with real dollars in the company's account.

The owners of this crypt, are the owners of the Bitfinex exchange, in connection with which a lot of negative flows in their direction. As with the printing of new dollars you can move the bitcoin price, which is attributed to Tether when Bitcoin rises to $ 20,000.

The token was created to simplify the work of exchanges with fiatnymi money. In fact, when someone says that going out to the dollar on the stock exchange, in fact, it is recorded in the USDT. Not so long ago, this token could disappear, as the owners could not pass the test, and confirm the presence of real money in the accounts.

Tether is based on the Omni Layer protocol, which provides the release of bitcoin-based tokens. It works according to the Proof of Solvency method (proof of solvency) - proof of reservation, or Proof of Reserves.

In general, this coin allows you to quickly take profits, but all the graters with the law do not very well affect its reputation.

According to CoinCodex, in June 2018, Tether released the Transparency Update report, in which it refuted claims that it did not have enough reserves in US dollars to support each USDT tokens turnover.

DAI (DAI)

DAI is a stable coin issued by the MakerDAO project. What distinguishes DAI from the rest of the list is its unique approach to ensuring a stable price. Unlike most other projects that are secured by foreign exchange reserves held in separate or several bank accounts. DAI is dependent on a smart contract system with the Collaterized Debt Position (CDP) supported by ETH to keep its price in balance.

Anyone can take part in joining Ethereum to the system, which will further enhance the stability of the coins. The DAI token works in tandem with the Maker MKR token, which is highly valued.

By the way, one guy from Switzerland even founded a legal company with this stable coin:

TrueUSD (TUSD)

As in the case of Tether, TrueUSD is pegged to the US dollar stored in the company's reserves in a 1: 1 ratio. The two coins differ mainly in the different positions of the issuing companies in terms of transparency.

TrueUSD team seeks to provide greater clarity in the internal workings of their business operations, and fully disclose factual information about their reserves in US dollars held in various banking institutions around the world. TrueUSD is subject to monthly reports conducted by third-party organizations and regularly publishes information about its account.

USD Coin (USDC)

USD Coin is another project aimed at strengthening its position in the market of stable coins. It was released by a consortium of CENTER and Circle, a fintech startup that acquired Poloniex in early 2018.

USDC is an ERC20 standard token aimed at maintaining the 1: 1 peg to the US dollar, and is guaranteed to be fully supported by monthly reports conducted by certified third parties.

Gemini Dollar (GUSD)

Gemini Dollar was launched by one of the largest cryptocurrency exchanges in the world, Gemini.

Like most projects with a stable coin, GUSD is a token with dollar support, but it has a clear advantage over competitors in the fact that it is supported by the well-known brand Gemini. With the full support of its infrastructure, Gemini Dollar is ready to gain momentum, and in the future to snatch itself a significant part of the market of stable coins.

In addition, Gemini retained the end-to-end insurance product to provide FDIC insurance within certain limits, with periodic reports published by BPM Accounting and Consulting.