What’s The Best Stablecoins — Stablecoins Part 5

  • Terra (LUNA) & UST — Failed algorithmic stablecoin
  • DEI — Failed algorithmic stablecoin
  • Titan & IRON Finance — Failed algorithmic stablecoin
  • DAI — Decentralized stablecoin backed by crypto assets. More than 50% backed by USDC creating a major vulnerability and risk with fiat exposure and centralized control from Coinbase.
  • Wrapped Bitcoin WBTC — This is a coin on Ethereum pegged to Bitcoin. It’s a different type of stablecoin, though many would consider this just a bridged asset now. You still rely on the DAO that manages this though just like any other stablecoin.
  • Coinbase USDC — Coinbase’s version of USDT backed by multiple fiat assets and mainly issued on Ethereum. They have the second most banned addresses out of the major stablecoins and are extremely centralized and backed by Blackrock.
  • Tether USDT — Backed by multiple fiat assets and issued on multiple networks, but best used on the TRC20 network. Great for liquidity and bad for decentralization. They have the most banned addresses out of any major stablecoin and are extremely centralized.
  • TrustToken TUSD — Real time attestation — Fully fiat backed — Trust Token has real time attestation for their cryptocurrencies: https://www.trusttoken.com/products
  • Binance & Paxos (BUSD & USDP) — Like the others, their attestations don’t show much or prove much.
  • Gemini Dollar GUSD — A smaller stablecoin that’s just as centralized as other fiat-backed coins like USDT or USDC.
  • Tron DAO Reserve USDD — Tron backed algorithmic coin I expect to fail.
  • Paxos Gold PAXG — Backed by gold assets. Because your gold is held in a centralized storage, you still have to trust they won’t lose it and will still honour your pegged value. The issues beyond that are lower liquidity and adoption.
  • XAUT — Same issues as PAXG except with even lower liquidity and adoption.
  • Hive’s HBD — Backed by Hive & policy from witnesses. This is a great algorithmic stablecoin, but due to the nature of algorithmic stablecoins, I personally am steering clear of them. I will note that I did hold HBD for a long time with no issues and made some great interest in it as well.
  • CBDCs –Central bank digital currencies are very centralized and provide some benefit over USDC or Tether but may introduce many new problems. View all the CBDCs in their current phases https://www.atlanticcouncil.org/cbdctracker/

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Scott Cunningham

Scott Cunningham

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I am a social blockchain enthusiast that blogs and vlogs on what I believe to be the next level of social communication. https://www.scottcbusiness.com/