There weren’t many Stablecoins before to choose from but now after a decade since the very first crypto, Bitcoin was created, we the cryptizens are left with many an option to choose from. But, here, let’s focus at the top 10 stable coins to look forward in 2019. Before talking about those, let’s first briefly understand the stable coins holy grail and why they are termed the same.
Stablecoins are the ones whose value remains stable, hence the name(which is one of the benefits of a stable coin), and that is pegged to the value of an underlying asset. Till now, the most popular stable coin is Tether(USDT), that is the fifth largest cryptocurrency in the world, by market capitalization. There have been recent suspicions however that stable coin is not backed by a dollar(USD) actually as the institution has not yet agreed to a transparent audit, which has been accused of manipulation Bitcoin price. Anyway, that’s a different news altogether, as of now, let us check out the best stable coin list with amazing potential to look forward in 2019.
Tether is the most renowned stable coin cryptocurrency as of now, which grabs the top 5 cryptocurrencies enlisted in coinmarketcap, whose CEO is JL Van Der Velde. This is a fiat enabled collateralized stable coin, that is backed by the most popular fiat currency, USD(US Dollar) in a 1:1 ratio, which means the value of Tether will be equivalent to the value of a USD.
It is the most widely used stable coin with market capitalization of $1,884,587,370, which has a high adoption rate. But very recently, there have been controversies surrounding over Tether as its easy to manipulate fiat-collateralized currency and it’s being found that Bitfinex, a popular exchange is behind USDT, which is also an ERC20 token.
Pros: Easy setup and full infrastructure support and is the 5th largest cryptocurrency
Cons: Issuing Tether without audit, No transparency
Exchanges: Binance, OKex, Huobi
Market Cap: $1,884,587,370
This is also a US Dollar backed stable coin which is totally fiat-collateralized, transparently verified and audited and legally protected. The best part about TUSD is their transparency as their attestations are made public and anyone can access the reports, making it one of the best stable coins.
This stable coin is being managed by people who have worked with big organizations like Google, UC Berkley, and PwC. They are planning to tokenize TrueEuro, TrueYen, TrueBond as their asset in the near future so that stability can be introduced in the volatile crypto world. TrueUSD is also one of the top 25 cryptocurrencies in the world pertaining to their market capitalization of $213,749,697. The supported assets includes small businesses, currencies, real estate and commodities and many more.
Pros: Guarantees ownership recognition with financial and legal institutions
Cons: Not as popular as USDT, adoption rates are lesser
Exchange: Binance, DigiFinex, Bit-Z
Market Cap: $213,749,697
MakerDAO(stable coin ICO) is an autonomous and decentralized institution that has introduced a new approach to making stable coins. DAI was created in 2017 and not pegged to US Dollar(USD) but backed by Ethereum. This is a classic example of a stable coin which is pegged by another cryptocurrency. So, this falls under the category of crypto-collateralized cryptocurrency.DAI is having a market capitalization of $56,801,526.
One disadvantage being pointed by the market players is that it is very complex and not easily understandable and their model has not been well tested. But it is likely to gain more adoption rate in 2019 as compared to 2018.
Pros: A resilient stable coin, can borrow on your own terms
Cons: Complex, have suffered some security issue in the past
Exchange: HItBTC, KuCoin, OasisDEX
Market Cap: $56,801,526
PAX has been known as the world’s first regulated stable coin crypto, launched by the Paxos Trust Company, which are similar to Tether as even PAX is backed by US Dollar in equivalent 1:1 ratio. PAX is unique as it’s been approved by the New York State Department of Financial Services. The CEO of PAX, Charles Cascarilla said that Paxos represents a huge advancement to the digital assets leveraging the conventional financial systems and enabling a global frictionless economy.
While PAX coins are circulated, the corresponding US Dollars are kept in reserve at FDIC-insured US banks and after redeeming, the PAX tokens are destroyed.PAX is an ERC20 token with market capitalization of $167,241,364 and the Ethereum wallets support PAX tokens also.
Pros: Because of it being an ERC20 token, human errors are minimized
Cons: Not many wallets are available, most of them are in beta stage.
Market Cap: $167,241,364
This is alike PAX in the way that both of them went on live on the same day and are regulated by the New York State Department of Financial Services. They declared themselves as the world’s first regulated stable coin. Gemini Dollar is an ERC20 token as well backed by USD with market capitalization of $86,072,734, launched by Gemini Trust Company, run by the billionaire Winklevoss twins, known for someone repeatedly proposing for BTC ETF(exchange-traded funds).
For every 1 GUSD issued, there is 1 USD held at Trust company and State Street Bank. Every month the balance is being examined by the BPM Accounting to ensure accuracy and the reports are made available for review, ensuring the transparency.
Pros: a hybrid online-offline approval mechanism for token issuance that provides the desired level of security and flexibility
Cons: Its a new crypto, which haven’t got the proper recognition yet.
Exchange: HitBTC, BCEX, DigiFinex
Market Cap: $86,072,734
The cryptocurrency finance firm circle Internet financial Ltd and the CENTRE open source consortium launched USDC, which is also backed by dollars. This is also an ERC20 token, available on many exchanges. The CEO of USDC said that USDC aims to solve fundamental problems and made this stable coin trustworthy, legitimate built on open standards. USDC is one of the best stable cryptocurrencies with a market capitalization of $191,727,658.
The circle would be using Grant Thornton, a professional services firm, to assist the management in verifying Circle’s US dollar reserves. It is creating multiple possibilities in lending, investing and trading finance.
Pros: Can be used as a stable coin with the exact features of a crypto
Cons: Lack of Scalability and Merchant Adoption
Exchange: Poloniex, Binance, CoinBase
Market Cap: $191,727,658
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2018-11-21 08:49:47.000001 | 2 min