Stablecoins proliferated in 2018, making it difficult to keep track of all the new entrants. This A-Z guide, originally published by CryptoComLearn, provides a detailed look at the most notable stablecoins of that era, spanning from algorithmic designs to fiat-backed models, and even a few failures. Here is the updated analysis.
B is for Basis
Basis, formerly known as Basecoin, was the hottest algorithmic stablecoin in 2018. It attracted investment from major crypto venture capitals and aimed to maintain a $1 peg through an algorithmically adjusted supply: expanding when demand rose and contracting when it fell.
B is for Bitusd
Bitusd is one of the oldest stablecoins, operating primarily on the Bitshares exchange. However, by 2018 its peg had started to wobble, and while it still functioned, its stability was questionable.
C is for Carbon
Carbon uses a similar algorithmic supply adjustment to link to the US dollar. Its long-term effectiveness remains to be seen.
C is for CK USD
CK USD is shrouded in mystery: its team is anonymous, and its circulating supply is unknown. Yet it recorded a staggering 24-hour volume of $137 million on BCEX and Allcoin, suggesting unusual activity.
D is for Dai
Dai, created by MakerDAO, had a market cap one-twentieth of Tether's but was praised for its transparency. It maintained its peg through over-collateralization of Ethereum assets. Concerns existed regarding extreme volatility, but it performed well.
H is for Havven
Havven issued two stablecoins: nusd (native unit) and eusd (Ethereum-based USD token). Both were designed for use within the Havven ecosystem and were not intended to replace Tether in the near term.
K is for Kowala
Kowala (KUSD) was highly anticipated before its launch. Its goal was to maintain a stable peg silently, much like a healthy immune system.
N is for Nubits
Nubits is a cautionary tale: it failed to maintain its peg and traded at around $0.15 on Upbit and Bittrex. Despite its failure, it still outperformed many ICO tokens from the same year.
R is for Rockz
Rockz billed itself as “the world’s most bulletproof cryptocurrency.” It was a Swiss stablecoin pegged to the Swiss franc, launched via an ICO.
S is for Stably
Stably raised $500,000 in early 2018 for its upcoming stablecoin on Ethereum and Stellar blockchains, with each token backed by cash reserves.
S is for Steem Dollars
Steem Dollars, created by Dan Larimer, eventually lost its precise peg and was essentially a “fablecoin” – a token whose promise of dollar parity became fiction.
T is for Tether
Tether remains the dominant stablecoin with a $2.8 billion market cap, despite controversy over its lack of full audits. Its peg is maintained largely by market belief, but it is considered too big to fail.
T is for Trueusd
Trueusd from Trust Token is backed by USD assets held in escrow, offering greater transparency than Tether. It gained adoption on Binance, Bittrex, and Zebpay.
U is for USD-C
USD-C, developed by Circle, was planned to launch on Poloniex as an Ethereum-based stablecoin pegged to the US dollar.
U is for Usdvault
Usdvault is collateralized by gold bullion stored in Swiss vaults, claiming a 1:1 ratio with the US dollar via precious metal backing.
Over the long term, most stablecoins, like many cryptocurrencies, are likely fated to fail. Yet in volatile crypto markets, stablecoins provide a temporary haven for investors seeking refuge.