Are Stablecoins Based Only On Trust? How Stable Are They?

Photo by Alexander Mils on Unsplash

Stablecoins were created to avoid high fluctuations in cryptocurrencies. Recent developments show: Not all stablecoins can fulfill this claim.

Stablecoins are cryptocurrencies whose price is linked to a reference value, typically the U.S. dollar. This is intended to eliminate the problem of price volatility of cryptocurrencies. Stablecoins were developed to trade on…