Does a stablecoin necessarily have to match usd 1:1?

X-ray

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it needs to retain value as close as its peg so yes it needs to be 1:1.

I presume most of stablecoin are redeemable at 1:1 to USD so if there's a stablecoin that gets priced around 0.3 and can be redeemed at 1:1 to USD then that's for sure a broken stablecoin Grin

or just a stable coin that has lost its peg due to lack of liquid for redeem. Grin

alani123

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Does a token with the explicit stated purpose have to be 1:1 to the United States Dollar for it to be good?
If you study the meaning of the very word stablecoin, I think you don't need to study much further...

This question doesn't have much point in it.
But what OP writes in the OP is even more absurd. A BlackRock backed stablecoin trading at 30 cents... Ok... The shit people do to promote shitcoins is crazy these days.

If you were to look at the top 10 coins in 2014, most don't exist today. It's very much likely that this will become worthless too. Not in 10 years, maybe even in 10 weeks. Seriously don't believe everything your read about shitcoins. Do some due diligence and if you can't just don't invest.

DeathAngel

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Being backed to the dollar is what makes a stablecoin attractive. It has to be stable with very little to zero volatility so it can hold wealth whilst the owner waits for a moment to re-enter the crypto they desire. The main use for stablecoins is a temporary park of fiat before entering or re-entering crypto. It makes sense that it’s backed to the world reserve currency instead of smaller local currencies.

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Tether is not truly backed 1 to 1, so no.

TastyChillySauce00

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Quote from: Charles-Tim on November 29, 2024, 03:07:33 AM

I do not really understand what your post is really about as you meant that USD0 is not a stable coin. It was said to be a stablecoin and it is still pegged to United States dollars. Since it was created, its price has not really increased and decreased more than United States dollar price.

You most likely confuses USUAL which is a governance token https://coinmarketcap.com/currencies/usual/ with ticker $USUAL

and Usual's USD0 which is stablecoin https://coinmarketcap.com/currencies/usual-usd/ with ticker USD0

when im talking about USD0 and USUAL it's different token and OP also mistake USUAL for USD0 which is different.

Kavelj22

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Quote from: notMeNahh on November 28, 2024, 05:01:09 PM

I came across this Blackrock backed stablecoin called usual and from it's current pre-market price it's around 0.3 a pop. My question is why is there a premarket for a stablecoin and why is there talk of a dip or pump about the token on twitter.

Just curious genuinely, some enlighten me haha

In 2023, stablecoins represent more than 13% of the market capitalization of all cryptocurrencies, which is far from being neglected or ignored, especially since this number is constantly growing. Stablecoins are becoming increasingly popular and their share in the cryptocurrency market is becoming increasingly important. This new type of asset appears as an alternative to traditional currencies and as a means of diversifying a crypto portfolio. As evidence of this, one can already see the significant progress that Tether has made since its first launch on one of the trading platforms.

el kaka22

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No idea about this stablecoin, never heard of it before and I do not think that I would trust it anytime soon. I still do not trust USDT or USDC, I do not like stablecoins to begin with, if I want something that is pegged to fiat, then I would just get fiat, why would I get a stablecoin? But on top of that, if I am going to get something decent, then I rather do that with what I already know, not something that I have never hard of before, makes no sense to take something like that as a risk.

I don't even know if blackrock did that or not, there are talks about it, but I am not really convinced about it, looks too shady. In the end, even if blackrock did, it is not ranked high enough, so I do not care to use it at all even it is pegged 1:1 against fiat and maintaining it.

notMeNahh

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Quote from: Orpichukwu on November 28, 2024, 05:58:42 PM

Can you share a link to which coin you are referring to?

Stablecoins are supposed to be backed up by the original currency that they represent, but I don’t know how authentic their verification is if they are truly backed up or not. But one thing about them is that the value only happens to climb down each time that the coins experience some crash and it depegged. I don’t know if I have ever seen any stable coins for which they run sales and whose price is below what it’s supposed to be.

Here is the link to the website of the project https://usual.money/ and as for the link to the chart where you can see the fluctuations even though it's it's still on premarket so here.

Someone already cleared it up tho, apparently USUAL is their utility token and the stablecoin is USD0

avikz

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Quote from: notMeNahh on November 28, 2024, 05:01:09 PM

I came across this Blackrock backed stablecoin called usual and from it's current pre-market price it's around 0.3 a pop. My question is why is there a premarket for a stablecoin and why is there talk of a dip or pump about the token on twitter.

Just curious genuinely, some enlighten me haha

Blackrock did not issue any cryptocurrency. I have checked in Google and I could not find a single cryptocurrency issued by blackrock. Can you please share a piece of news related to this one?

For a stable coin, the main idea is that, they will be backed by some real assets. It could be dollar, it could be gold, it could be anything. But it must be backed by something. However, due to external factors, the price of a stable coin can sometime fluctuate. But this is not a regular occurrence.

pooya87

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Stable coins are still coins or in this case tokens, and like any other coin or token their price is decided based on their market dynamics (part of supply and demand). So when people don't show interest in the shitcoin, it drops and if they show interest it will go up.
Usually since stablecoins are centralized and the company that owns them has a lot of that token and also a lot of money they can manipulate the market to keep the price stable if it goes in a certain direction.

Do they have to be 1:1? No, but they have to be stable though.

Charles-Tim

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Quote from: TastyChillySauce00 on November 28, 2024, 09:55:54 PM

Quote from: notMeNahh on November 28, 2024, 05:01:09 PM

I came across this Blackrock backed stablecoin called usual and from it's current pre-market price it's around 0.3 a pop. My question is why is there a premarket for a stablecoin and why is there talk of a dip or pump about the token on twitter.

Just curious genuinely, some enlighten me haha

their stablecoin is called USD0, Usual is just a governance token, don't know the utility but it's most certainly not stable coin, just like how Ethena issued ENA which is a governance token and USDe which is stable coin.

the USD0 is the one that's actually pegged to some asset, usual on the other hand, isn't pegged to anything therefore the price is fluctuating so much.

the worth of usual is derived from utility, or benefit the project can provide, while USD0 is 1:1 to USD and is the product.

I do not really understand what your post is really about as you meant that USD0 is not a stable coin. It was said to be a stablecoin and it is still pegged to United States dollars. Since it was created, its price has not really increased and decreased more than United States dollar price.

This is the coin on Coingecko: https://www.coingecko.com/en/coins/usual-usd

Also on Coinmarketcap, the coin all-time high was $1.0056 while its all-time low is $0.9969.

TastyChillySauce00

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Quote from: notMeNahh on November 28, 2024, 05:01:09 PM

I came across this Blackrock backed stablecoin called usual and from it's current pre-market price it's around 0.3 a pop. My question is why is there a premarket for a stablecoin and why is there talk of a dip or pump about the token on twitter.

Just curious genuinely, some enlighten me haha

their stablecoin is called USD0, Usual is just a governance token, don't know the utility but it's most certainly not stable coin, just like how Ethena issued ENA which is a governance token and USDe which is stable coin.

the USD0 is the one that's actually pegged to some asset, usual on the other hand, isn't pegged to anything therefore the price is fluctuating so much.

the worth of usual is derived from utility, or benefit the project can provide, while USD0 is 1:1 to USD and is the product.

Patikno

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Quote from: notMeNahh on November 28, 2024, 05:01:09 PM

I came across this Blackrock backed stablecoin called usual and from it's current pre-market price it's around 0.3 a pop. My question is why is there a premarket for a stablecoin and why is there talk of a dip or pump about the token on twitter.

Usual is not a stablecoin, but rather an entity that issues stablecoin. Their stablecoin is USD0, it has the same value 1:1 as the original FIAT USD. Not only stablecoin, they also have Usual token that you are talking about here, looking at Coinmarketcap, the price is around $0,3. Usual token is the governance token of the Usual entity itself, and of course, its price can go up or down.

Orpichukwu

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Can you share a link to which coin you are referring to?

Stablecoins are supposed to be backed up by the original currency that they represent, but I don’t know how authentic their verification is if they are truly backed up or not. But one thing about them is that the value only happens to climb down each time that the coins experience some crash and it depegged. I don’t know if I have ever seen any stable coins for which they run sales and whose price is below what it’s supposed to be.

notMeNahh

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I came across this Blackrock backed stablecoin called usual and from it's current pre-market price it's around 0.3 a pop. My question is why is there a premarket for a stablecoin and why is there talk of a dip or pump about the token on twitter.

Just curious genuinely, some enlighten me haha

Topic: Does a stablecoin necessarily have to match usd 1:1? (Read 157 times)