These are coins that represent a fixed value linked mostly to the dollar. everyone uses them at times as a resting place to go without going to your bank account. It makes trading crypto easier and safer. Or at least what we thought was safe. It is already known that stablecoins do not always remain stable, but we will come back to that later. We will go over some stablecoins and what is good and what is not.
This was the very first stablecoin ever put into circulation in 2014 on the Bitshare blockchain. The pioneers in this world at the time were Dan Larimer and his colleague Charles Hoskinson, known as the guru of Cardano, a very successful network that may well become Ethereum's biggest competitor. Now regardless of that, the Bitusd underlying value was backed by the core BTS token. We should also add that around 2018 the stablecoin lost vvalue, it dropped to 80 cents, so not so stable in hindsight, it triggered a big discussion about the safety of the stablecoins.
This stablecoin was also launched in 2014 a few months after Bitusd. This stablecoin also lost a huge amount of value. It has experienced 2 major crashes, one in 2016 and one in 2018. So it is not stable yet either, its price evolved from $1 to $1.20 to the most recent price of 6 cents. So this is still hard to call safe.
Everyone knows this one of course, this coin that has become the largest stablecoin came into being in 2015 via the trading platform Bitfinex. The coin was originally called Realcoin, but was later rebranded to USDT or Tether. This coin is also associated with major price manipulations. This token was backed by real dollars but whether it is full-fledged remains to be seen as research shows that this coin is only 75% really supported. Sooner or later, this could cost them dearly.
This stablecoin also began to crack and has lost enormous value. The value dropped to 11 cents. Its sistercoin Luna also crashed and took all of the crypto market with it. Yet another perfect example of the questioned safety of stablecoins.
This stablecoin linked to silver is a safer choice in my opinion. This token is on the Ethereum network and is also vetted from time to time so the consumer is sure that they actually have the promised silver. You can also request the physical silver at any time. All this leads me to believe that this is a safer choice.
This company Paxos brings physical gold to the blockchain. Each token is worth about a troy ounce. So like the silvertoken I think this is a much safer choice. Can by the way be purchased on Binance , so that adds to the ease of use.
So as you can see the stablecoins are not all safe. The tokens that should be safe havens are showing cracks here and there. The question is who will be next and what will be the effect on the market. Time will tell.