What are stablecoins, and how do they work?

Cointelegraph’s director of video production, Jackson DuMont, talks about stablecoins and how they actually manage to stay stable at a $1 value. He also explains how stablecoins differ from other cryptocurrencies and the reason behind the crash of Terra’s LUNA and the depegging of UST.
00:00 - Intro
01:20 - What are stablecoins?
02:28 - Stablecoins unique properties
05:18 - How do stablecoins work?
05:28 - Fiat-backed stablecoins
05:51 - Commodity-backed stablecoins
06:42 - Crypto-backed stablecoins
07:36 - Algorithmic stablecoins
08:18 - What happened to LUNA and UST?
10:53 - Conclusion
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Cointelegraph covers everything Bitcoin, bringing you the latest news, prices, breakthroughs, and analysis, with emphasis on expert opinion and commentary from the digital currency community.

[@yongzhi5811]

Great content. Would like to see you cover which layer1 blockchain can be the trend during the next bull market.

[@juanferguson6082]

Useful video, thank you! For novice crypto traders, it is important to know the advantage of USDT

[@temitopeoyeyinka9951]

Great content! Would like to see you cover the challenges and opportunities of stablecoins for central banks worldwide

[@luluxxx3076]

isn't DAI decentralized ? not clear at 10:43

[@4night973]

DAI is partially collateralized with USDC afaik.

[@devonlee8096]

Great vid

[@ritensaliman3589]

When I studied Tether, I became very familiar with how stablecoins work.

[@killerbi5052]

What was the first coin you bought yourself? from the stable... i'm tether

[@FalconClub-sk9gg]

Not so much I store tokens in my BFX wallet

[@DaemonTools-yr5bl]

It is enough to get familiar with Tether and that's all you need to know about stablecoins.

[@mannyaldava9464]

Does this mean if the dollar and / or banks crash. My stable coins will still hold value?

[@87solarsky]

This video will need some serious updating/revising, once the USD and the EURO become worthless...

[@locoroller_com]

This never explained the non-algorithmic 'ponzi Stablecoin'

[@Nickeb15173]

"That right is reserved for the US government" - OHHHHHHHH DAMN! loved it

[@bobmarley5449]

I want to buy as much Tether as possible and wait for something special

[@gihappy9414]

Tons of stablecoins, nothing else to choose from, one Tether and that's it

[@shanonramsey5056]

It is important for novice crypto traders to know about stable coins. Tether is very useful for trading and buying cryptocurrencies.

[@julifafin7216]

No matter how good I feel about all stable coins, the best remains Tether anyway

[@dbestonly]

You still poor? Do Kwon: YES 😭

[@manzoorahmed4297]

🇵🇰 پاکستان زندہ باد 🇵🇰 🌍🌎🗺