What are stablecoins, and how do they work?

Stablecoins are supposed to be everything tokens like bitcoin and ether aren’t.
Whereas bitcoin’s price fluctuates sharply, stablecoins are designed to be worth the same as something else - usually the U.S. dollar. Many stablecoins are also issued directly by companies, whereas bitcoin operates independently of any central authority.
Recent events have shown that not all stablecoins are as stable as they’re made out to be. TerraUSD, a so-called “algorithmic” stablecoin, fell below its peg dramatically, eventually crashing to a fraction of a cent and bringing an associated coin down with it.
The debacle has led to fresh scrutiny from regulators, who are worried stablecoins will one day get so big they could cause damage to the larger economy if they fail.
Tether, the world’s largest stablecoin, is a $70 billion juggernaut in the crypto world. But the company, which claims each of its tokens can be redeemed for exactly one dollar, has long faced doubts about the assets that underpin it.
Watch the video to learn more about stablecoins and why they’re so controversial.
#CNBC #Stablecoins #Crypto
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[@thomaslam8448]

Problem is there is no transparency. They tell you its got a backing but turns out it doesn't

[@philthy941]

You should ask for transparency from the banking sector lol. I develop their tech and it's all smoke and mirrors

[@arctic_haze]

@@philthy941 Well, banks did happen to have very dodgy collateral from time to time. But stablecoins do not even report what they have. If you do not trust the banks, why would you trust stablecoins?

[@reginamoore9013]

Recently, it seems that stable coins have a strong presence in the cryptosphere. For me, Tether occupies a leading position in the rating of stable coins.

[@killerbi5052]

Once again I am convinced that USDT will always be in my wallet

[@johnnieshelton8976]

I think that a stable coin plays an important role in supporting cryptocurrencies, for example, Tether.

[@user-li7se1fp1t]

Great video! Very informative! Very interesting! 😊

[@Web3WondersUS]

I am your 1000th thumbs 👍 up! Excellent video showing the functionality and the risks. Web 3 offers a ledger of trust, the stable coins need stabilizing.

[@lostinmuzak]

Lol. Regulators? What regulators? Let’s get some 6th graders. Will do a much better job.

[@WhistleBlower-vr6ob]

Mfkers should be going to jail for fraud and a Ponzi scheme...

[@lalithrao8406]

Is it CDFC and stable coins are same thing ??

[@aslongasittakesforme3163]

IMO stable coins is an integral part of the crypto space which is impossible to imagine regular trading without these days. That is why many experienced investors use fiat-backed ones like Tether which is the most popular and safest on the market rn.

[@edortauranga5503]

Rn?

[@elliceeastwood5368]

What do you think about stablecoins like mxnt?

[@alparslankorkmaz2964]

Nice video.

[@princejaiswal6487]

Today world living and working in Illusion.... 😅🤣🤭😂

[@donnatorres924]

I think that you should not be afraid of stable coins. There are options that have proven themselves on the market for a long time. For example, Tether.

[@saulgoodman2018]

Still didn't understand none of this.

[@andrewleventis8341]

aah 17th century tulip buying is back

[@giliantron8253]

But do not forget that now there are already coins backed by different currencies, for example MXNT by pesos.

[@daxatax129]

a healthy market weeds out the crap. an unhealthy market says the crap is too big to fail.

[@sharonmay8158]

The main role of stable coins is to quickly transfer funds between exchanges. Now I use USDT and can take advantage of arbitrage offers that arise when the price of a cryptocurrency differs from one exchange to another.

[@AriVovp]

What are penny, cent?

[@shanonramsey5056]

A stable coin is very useful for traders, especially beginners. Using USDT in trading makes transactions quickly and easily.

[@leouyw8476]

Never forget that tether was the first and is still the most popular.

[@muskduh]

thanks

[@johnydep8554]

Probably if you look at the capitalization at the moment, Tether has the largest

[@foxxoff9670]

Never forget about tether when talking about stablecoins.

[@itsok3195]

actually it really looks like a great project it has 50m cap

[@cryptoman9665]

What about MXNT? A promising stable coin backed by pesos.

[@sosyaladam5456]

Last time I missed another project like this that made x10 I've invested $1000 on this posschain I'll not miss the train this time

[@lossoest7988]

Do not forget that stablecoins are different. Like GBPT for example.

[@jabig1]

Do Kwon was removing large sums from its liquidity

[@jamesroller6087]

When you talk about stablecoins, never forget about usdt.

[@gihappy9414]

From the entire list of stablecoins, I can only choose Tether

[@jayguzman3111]

I wouldn't draw any comparisons between USDC and USDT. Tether is simply more transparent about their reserves, and they publish quarterly reports on them. They just outperform and are more transparent than USDC.

[@dimetriogontsy9505]

The popularity of GBPT is growing. And soon such coins will be very important for the market.

[@KingOfHithlum]

So much for renouncing "government control" !!!!😂

[@rimoham9248]

Now there is only one right choice - tether.

[@TNoel-ol8es]

There is no reason to worry if you use popular stablecoins like usdt.

[@joriahmass5970]

I am following the news about stablecoins now and it seems GBPT is gaining popularity

[@williammonda360]

I personally am not afraid of them and try to add as much as possible to my BFX wallet

[@arctic_haze]

This comment did not age well, did it?

[@kufarby4342]

Do not be afraid of correct and reliable stablecoins - such as Tether for example

[@charleswilliams8847]

Stablecoin can best be described as unregulated digital banking. Money in the modern world is created by financial intermediation - the basic function of banks. Now if regulation is beneficial to owners of stablecoin, the operators of a stablecoin system could easily opt for it. Governments could be enlisted to provide this service as could the big auditing firms.

[@TimeTrapper]

Guys do not attack these projects like a flock save some for us

[@dennisharper9959]

I think we have no reason to worry. I use Tether and for me it is the most reliable option of a stable coin.

[@MDK83]

Why is it the most reliable?

[@dennisharper9959]

@@MDK83 If we compare this coin with competitors, then we see a higher level of security. During the general downturn in the market, Tether proved to be the safest option.

[@MDK83]

@@dennisharper9959 I understand the historic state, but all stable coins were reliable before they fell apart. In terms of the methodology being used and theory, what makes Tether so different and thus more reliable... aren't other stable coins opperating in a similar fashion.

[@dennisharper9959]

@@MDK83 I see how the media has been shouting about this for a long time, but nothing happens. Using stable coins gives us a lot of benefits. For me, USDT is the representative of the dollar in the cryptosphere. It is inconvenient to trade in dollars, and it is uncomfortable in cryptocurrencies due to volatility.

[@troyortiz5397]

USDC keeps on being a dissapointment especially with them still lacking any audits

[@mack-uv6gn]

Pump and dump?

[@anthonyquinn9899]

Many are worried about stable coins because they don't see evidence of full security. For example, the USDC has been lying about its reserves for a very long time.

[@danieljones3859]

I think people are afraid if they don't understand. You can easily understand the advantages of using USDT and trade successfully.

[@iggs1e33]

Like everybody knows ico projects make x10 x20 in bear seasons I've joined a couple of projects along with posschain let's see what happens

[@amandaadams6601]

But USDT is still the best option right now.

[@zachnewkirk9486]

I’ve got 3 words for you: 1 diversify 2 diversify 3 diversify

[@ritensaliman3589]

If suddenly someone does not know which stablecoin to buy, I advise you to pay attention to Tether

[@TomNook.]

Q: What are Stablecoins? A: An oxymoron.

[@CalvinK300]

Same as “Handsome Man” or “Beautiful Girl” on Tinder.

[@charleswilliams8847]

Think of them as deposits denominated in a specific currency in an unregulated digital bank that operates on the internet out of the reach of any government. These deposits can be used directly in economic transactions between parties willing to use them.

[@b2bblitzreplays362]

i love blockchain projects they make the platform evolve

[@jessicaholland8780]

Stablecoins like tether will help you protect your funds when the banking system continues to collapse

[@sergiogonzalez6047]

Terra Luna classic will rise from the ashes . Do kwon also did something shady along with sbf to bring it down it was not entirely the fault of the algorithm

[@chunkalunkin2000]

Life is funny

[@sergiogonzalez6047]

These guys had no clue about ftx either 😂

[@Marantzzz]

Pyramid scheme

[@satoshihunter]

It's not only about trading smh. Stablecoins work for a global cross-boundary transfer on the blockchain within seconds of settlement. Try to transfer dollars between countries. Stablecoins make it a lot easier and faster (and stable!). Banks should adopt it and replace the current slow and cumbersome system. Painting a negative picture of them is like denying the importance of the internet in 90s-2000s. Simply stupid.

[@17pradeepjena55]

Dude please give up the crap about how "everyone was saying internet will fail". No ones going to fall for it this time.

[@Kevin-fq3zh]

i’m still laughing my guts out at all those goons who got burnt by the crypto meltdown

[@MoritaJunichiro]

World transfer in my socks？…？

[@Stay100chicago]

•

[@franksway3658]

XRP

[@VahidPm-sh7tk]

.

[@randallchandler7263]

քʀօʍօֆʍ

[@joeashbubemma]

It looks like the world is desperately trying to find the next religion, and there are more than enough preachers to go around. It's all based on...wait for it...FAITH.

[@scrubbwhite291]

This guy is talking trash - another frontman for a failed idea.

[@zuhmn8340]

This thing is just a cheat

[@b_to_the_b]

They’re a lie

[@anonanon7235]

1) "What are stablecoins" is a scam. 2) and who cares how does it work.

[@zainiabdullah621]

"The Summit of the Americas looks to be a debacle, a diplomatic own goal. The US has no trade proposal, no immigration policy, and no infrastructure package. Instead, the US focus is on who will and will not be there. " - NYT June 06, 2022 China is seemingly everywhere investing in strategic technologies, embedding itself in 5G networks and other infrastructure, building military alliance, working political relationships and joining projects early to gain influences. Of the 31 countries in Latin America, 25 have partnered with China on infrastructure projects for economic development. The US's main problem is the administration's inability to offer economic goodies to foreign countries for them to align with the US. The US offered only millions while China give billions and billions. BECAUSE global economic liberalism has been so successfully discredited by Donald Trump and Joe Biden ans detested by American voters. China on the other hand has more leverage, because dissent is not part of the process, everyone knows what's expected. To quote the President of Barbados in front of the US Secretary of State at the Americas Summit: "We need to be talking WITH, not to be talking AT !"

[@michaelsteven1090]

What a negative joke this video is..