Cryptopedia: Learn the concepts behind stablecoins and how they work
2022.05.25 20:46
Cryptopedia: Learn the concepts behind stablecoins and how they work
Cointelegraph’s director of video production Jackson DuMont dissected stablecoins in the latest episode of Cryptopedia. DuMont also explored and explained algorithmic stablecoins and the recent incident involving the TerraUSD (UST) and why it was unable to maintain its dollar peg.
DuMont defined stablecoins as “a crypto whose value is tied to an outside asset such as the United States Dollar (USD).” According to DuMont, stablecoins are very vital to the crypto industry as they provide users with the ability to store their assets without worrying about the depreciation of the assets’ value. This function is useful in bear markets where there are a lot of uncertainties.
