How and why do stablecoins depeg? By Cointelegraph
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Stablecoins are a type of cryptocurrency designed to have a stable value relative to a specific asset or a basket of assets, typically a fiat currency such as the U.S. dollar, euro or Japanese yen.
Stablecoins are designed to offer a “stable” store of value and medium of exchange compared with more traditional cryptocurrencies like (BTC) and Ether (ETH), which can be highly volatile.
The stablecoin’s value deviates from its peg
Traders and investors react to the depegging event
Arbitrage opportunities arise
The stablecoin issuer takes action
The stablecoin’s value stabilizes
Continue Reading on Coin Telegraph
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Stablecoins are a type of cryptocurrency designed to have a stable value relative to a specific asset or a basket of assets, typically a fiat currency such as the U.S. dollar, euro or Japanese yen.
Stablecoins are designed to offer a “stable” store of value and medium of exchange compared with more traditional cryptocurrencies like (BTC) and Ether (ETH), which can be highly volatile.
The stablecoin’s value deviates from its peg
Traders and investors react to the depegging event
Arbitrage opportunities arise
The stablecoin issuer takes action
The stablecoin’s value stabilizes
Continue Reading on Coin Telegraph
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