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Which Stablecoins Are Safe to Use? (USDC, USDT, DAI, etc.)
A stablecoin is a type of cryptocurrency where the value of the digital asset is supposed to be pegged to a reference asset, which is either fiat money. A �stablecoin� is a type of cryptocurrency whose value is pegged to another asset class, such as a fiat currency or gold, to stabilize its price. Here's why. Stablecoins are an attempt to create a cryptocurrency token with a stable price�their stability commonly achieved by pegging the token to an asset such as.

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Controversy The crypto market's most significant coins are also its most controversial. See Also: What's the Point of Stablecoins? For each stablecoin that exists, there is fiat currency held in the treasury to back it up. The potentially problematic aspect of this type of stablecoins is the change in the value of the collateral and the reliance on supplementary instruments. Bloomberg News.