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6 Stablecoins You Should to Invest in 2019
If you follow the crypto space, you’ve likely heard about Gemini USD (GUSD): the first regulated stable coin planned and managed by the Winklevoss twins and their team from Gemini Exchange.
The token has a number of things going for it. It’s issued by a New York trust company called Gemini Trust Company, which means that it’s regulation compliant. It’s strictly pegged to the US dollar, with funds being held in a regularly audited bank account.
Digitally, the token is ERC20 compliant – which means that it uses the Ethereum blockchain and programming language, making it easy to audit and manage.
But how does GUSD measure up against other stablecoins?
While there may not be a clear-cut answer to that question, we’ve looked at competing tokens and posted what we discovered below. Read on to learn about other coins’ stability mechanisms, day-to-day volatility,
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Tether – USDT
Tether is a project that many view as a Bitfinex spin-off. Many core team members run both companies – and Bitfinex was one of the first places to trade USDT tokens.
As of today, Tether has a massive market capitalization of over $2.6 billion. It’s also accepted by most exchanges, including CoinCola. It’s highly stable, with variance rarely exceeding 1 or 2 cents, and it has the public’s trust.
Unfortunately, Tether has been known to be weak on transparency. Some people have speculated they don’t have the funds they claim – and though there’s no evidence to that, Tether have not made meaningful efforts to help external auditors prove the reverse.
While this is neither here nor there, it’s worth considering if you want to hold USDT in the long run.
True USD – TUSD
True USD is a new project. Despite this, it has a very respectable market cap of over $200 million.
TUSD is notable for making a real effort to be transparent and fair. Their funds are backed by USD at a 1:1 ratio; they use third-party audits to provide transparency; they make their account details public to reassure investors and coin users.
One interesting thing is that TUSD doesn’t actually hold users’ funds. Instead, they use an escrow system to hold them on behalf of their customers. This drastically reduces the odds of funds getting mismanaged or lost – and gives ease of mind.
Dai – DAI
DAI is a different kind of stablecoin. For starters, it is not backed by real-life USD holdings. Instead, it uses Ethereum tokens given by users for collateral. This begs the question of how a $1 price is maintained – and the answer is simple.
Ethereum is the world’s foremost smart contract platfrom. With the DAI currency, a series of smart contracts are used to peg prices to the USD. If prices go up, this mechanism brings them back down – and vice versa.
Perhaps due to this relatively complex process, DAI can be a little more volatile than other stablecoins. Its daily volatility has been gone to go as high as 7-8%. That might not seem like a big deal, but getting $0.92 on your $1 DAI isn’t great.
DAI has one of the bigger stablecoin market caps: $85 million, with a daily trading volume of around $20 million. Although it can be volatile, it certainly has the trust and support of a lot of people.
PAXOS – PAX
PAX is a young stablecoin that came out in late 2018. It’s also extremely popular, with over $5 billion of transactions processed in its first 3 months and a market cap of $111 million.
While not as legally sound as the new GUSD, one of PAX’s main draws is regulatory compliance. Its holding company has a charter from the New York State Department of Financial Services, which means it can legally offer financial services in the crypto space.
Furthermore, PAX is one of the most stable tokens out there. Variance trends towards 0%, which means that PAX is reliably worth $1 – or very close thereto. No wonder its market cap grew so quickly!
Gemini Dollar – GUSD
It’s early to tell how the GUSD will measure up against other coins. At the same time, the quality of the project is readily apparent – and many believe it will take over Tether’s #1 spot in the space.
Here at CoinCola, we believe in GUSD’s proven management, outstanding regulatory compliance, and auditing mechanisms.
That’s why we’re happy to offer an unprecedented, time-limited offer for our users. To onboard as many people as possible onto GUSD, we’re giving buyers and sellers discounted commission rates: [deal details].
To get involved now, just go to coincola.com and start buying Gemini USD today.
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About CoinCola
Founded in 2016, CoinCola is a Hong Kong based company offering both over-the-counter cryptocurrency trading and crypto-to-crypto pair trading exchange. CoinCola now serves millions of users from over 150 countries with our fast, secure, and reliable trading services. We support BTC, ETH, BCH, LTC, USDT, DASH, and XRP. Visit www.coincola.com to invest in digital assets.
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