In 2018, the cryptocurrency market experienced extreme volatility, leading to a surge in stablecoins as safe havens. A comprehensive A-Z list published by Kai Sedgwick on Bitcoin.com captured all tradable and upcoming stablecoins at the time. This article revisits that landscape, highlighting key features and outcomes.
B is for Basis: The Algorithmic Star
Basis (formerly Basecoin) aimed to maintain a $1 peg through algorithmic supply adjustments—expanding when demand rises and contracting when it falls. It attracted major venture capital but ultimately faced regulatory hurdles and was shut down.
B is for BitUSD: Aging and Wobbly
BitUSD, operating primarily on Bitshares, had already lost its peg by 2018, trading at a slight discount. It still functioned but was far from stable.
C is for Carbon and CK USD
Carbon adopted a similar algorithmic model to Basis. CK USD was an obscure token with a reported $137 million daily volume despite no clear data on supply—often cited as a sign of wash trading.
D is for Dai: Transparent and Resilient
Dai, created by MakerDAO, used overcollateralized Ethereum to generate a dollar-pegged coin. Though its market cap was only 5% of Tether's, its transparency and reliability made it a favorite. Dai has since become one of the most successful decentralized stablecoins.
H is for Havven: Ecosystem Dual Token
Havven issued nUSD and eUSD for use within its own ecosystem. An EOS version was in development. The project later rebranded as Synthetix, shifting focus to synthetic assets.
K is for Kowala: Anticipation Before Launch
KUSD was not yet live but generated hype. The project eventually pivoted to other use cases.
N is for NuBits: A Cautionary Tale
NuBits famously lost its peg and traded around $0.15 in 2018. It serves as a textbook example of stablecoin failure due to insufficient demand and governance issues.
R is for Rockz: Swiss Franc Backed
Rockz planned to back each token with Swiss franc reserves and launched via ICO. Its actual adoption remained limited.
S is for Stably and Steem Dollars
Stably raised $500,000 to issue USD-backed tokens on Ethereum and Stellar. Steem Dollars, created by Dan Larimer, deviated significantly from its peg and became known as a 'fablecoin'.
T is for Tether and TrueUSD
Tether (USDT) dominated with a $2.8 billion market cap despite lacking full audits. TrueUSD offered greater transparency with escrow-backed reserves and was adopted by Binance and Bittrex. Today, USDT remains the largest stablecoin by market cap.
U is for USD-C and USDVault
USD-C (now USDC) by Circle launched on Poloniex and later became a top stablecoin. USDVault proposed backing by gold bullion in Swiss vaults but failed to gain traction.
While many stablecoins from the 2018 era have since vanished or evolved, the list captures a pivotal moment in crypto history. It highlights the tension between algorithmic and collateralized models, and the enduring importance of trust and transparency.