Home CryptoBitcoin Crypto: Not All Stablecoins Are Equal

#crypto #stablecoins #altcoins


“All crypto market participants should be aware that not all stablecoins are created equal”— Paul Ebeling

Note: Stablecoins are crypto assets designed to have a relatively stable value by being pegged to a commodity or currency like the USD.

Following the collapse of Terra’s algorithmic stablecoin TerraUSD, the head of the crypto lending platform says in a new interview that not all stablecoins can be considered a stable asset. 

“It’s very important for people to understand that not everybody who calls themselves a stablecoin is a stablecoin. Just because you have some kind of an algorithm and you attach the word stablecoin to it does not mean you are a stablecoin, so we need to really separate.

Celsius supports 14 different assets that are considered a form of stablecoin, but we group them into different buckets. You have the USDC (USD Coin), the TUSD (TrueUSD), the USDP (Pax Dollar), which is the Paxos coin and you know that for every dollar, every token, every ERC-20 that is issued, there is a dollar sitting in a bank account in the form of cash or in the form of treasuries.”

It’s 1:1 peg. No question about it.”

Celsius Network CEO Alex Mashinsky says that even if the value of the mentioned stablecoins fluctuates in some crypto exchanges, owners can still redeem the full value of their holdings through the stablecoin issuer.

“You can redeem it at any time, and people have to understand that just because something trades at $0.98, even if USDC trades on some exchange at $0.98, that means nothing, but people don’t understand that. They look at the price on the exchange, price on Binance or price on FTX, just means that the willing buyer and the willing seller exchange hands at $0.98 on that platform. That has nothing to do with USDC or USDT or anybody else, and it’s important that people understand that.”

For live action crypto quotes click here.

Have a prosperous week, Keep the Faith!

You may also like


Your Trusted Source for Capital Markets & Related News

© 2023 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.