According to Bloomberg’s source Facebook is working on a stable coin for WhatsApp. The first focus will be on the remittances market in India.
Stable coins are cryptos meant to hold a stable value. They are generally pegged to $1 USD.
For example, Tether (USDT) and USDC are centralized cryptos whose value roughly mirrors the price of a dollar, while Dai is an attempt at a decentralized stable coin.
Some stable coins are backed by dollars like USDT and USDC, other stable coins use different mechanics to keep their peg (for example Dai is backed by crypto assets). Each stable coin is its own beast.
For exchanges that don’t deal in dollars, stable coins provide much needed liquidity and allow traders to go to a stable asset that mimics cash.
Details aside, suffice to say, in the volatile world of crypto, its nice to have some stability.
Poloniex an exchange owned by Circle, a company who also launched the stable coin USDC, is a popular crypto-to-crypto exchange.
Although Tether mostly stabilized and nearly regained its $1 peg after becoming “untethered” on Oct 15 2018, it is still trading under $1. This has some notable implications.
A lot has happened in crypto in October 2018 despite the price of Bitcoin staying rather stagnant. Let’s do a quick review of October 2018 so far.
Those who think Bitcoin or an other cryptocurrency will go down, or want to hedge against a “long” position, can open a “short” position. Below we explain how to short Bitcoin and other cryptos.
Tether tends to get printed before crypto prices stabilize or go up. The simplest reason for this is because Tether acts as a dollar substitute, especially on exchanges that don’t use dollars, and prices go up when people buy crypto… especially with dollars / dollar substitutes.
A 66 page study is trying to assert that Bitcoin’s 2017 rise was the result of price manipulation using Tether… but the report is narrow and likely not telling the full story.
Bitfinex is a leading and important cryptocurrency exchange that offers the major cryptocurrencies for trade and is a favorite spot for margin traders.
“Stable coin” is a term used in cryptocurrency to describe cryptocurrencies meant to hold stable values. For example, Tether (USDT) is a blockchain based asset meant to trade for $1 USD. It is a “price-stable cryptocurrency.”
Bittrex’s CEO confirmed that after some updates Bittrex will soon reopen signups to new users and allow USD trading.