In the recent years since the first type of cryptocurrency came around, there has been a lot of speculation that these other forms of currency will just die down and people will move on from the idea of it. But since then, especially with the continuous surge and plunge of cryptocurrencies, many other types of cryptocurrency followed. Bitcoin and others are still surviving, and although there have been a lot of fluctuations in their prices, the volatile nature of these currencies is what makes them special.
One of those emerging is the 'Stable Coin’ which is a form of cryptocurrency that is attached to a stable currency like the USD and EUR in order to minimize the volatility. Stable coins can also be backed by commodities or precious metals like gold and platinum which then classifies them as a 'centralized’ currency unlike Bitcoin and others which are classified as 'decentralized’.
There are several types of stable coins that are circulating in the market today, some of which are performing well and are backed by stable currency:
1. SGDR is backed by 1:1 for Singaporean Dollar, which is exciting because it is backed by another currency aside from USD that is turning Singapore to be one of the havens for crypto traders. While the SGD’s stability is consistent, that is why traders have added a stable coin for it.
2. EURS is ranked number 90 overall which focuses on the Euro currency. It has been established for over a year now and has continuously remained stable.
3. GUSD is backed by US dollars and is government regulated which also makes all their assets are backed by two of the well-known companies in the world, the Trust Company, and State Street Bank.
4. TCX or Tiberius Coin which is a unique kind of stable coin due to the fact that it is completely backed by the combination of 7 precious metals which are copper, aluminum, nickel, cobalt, platinum, tin, and gold.
5. LBXPeg is released by the London Block Exchange (LBX) and is the first stable coin to be backed by the pound sterling on a 1:1 basis and is held auditable with a UK bank account.
6. USDT is the most popular stable coin available with its stability in terms of being backed by the US Dollar. It is one of the original stable coins and has been in the market for almost 4 years now. But with its track record of being accused of manipulating the market, it has suffered plunges in its stock value. But this stable coin is here to stay after all that has been going on in the market.
Trading these Stable Coins has been easier than other types of cryptocurrency. The stability of this currency is proven to be connected to real-world assets, much like when a trader pays a dollar for a coin and can still redeem it afterward without having to think about the wild changes in the pricing of other currencies that are floating in the digital world. The stable coin doesn’t experience the same volatility as Bitcoin, Etherum and all the other cryptocurrency.
Many traders believe that Stable Coins is the answer to the decentralized system of cryptocurrencies, and with the continuous development of this currency it will also mean that it will soon stand out from the rest of cryptos.