The Rise of Stablecoins: Less Fun Cryptocurrency, More Viable Money

Cryptocurrency, Tether (USDT), Stablecoins–Earlier in the week EWN reported on comments by long-time Bitcoin bull and overall cryptocurrency proponent Mike Novogratz, when he expressed interest in the future of stablecoins as a viable source of digital asset. While his comments also came with criticism for the most recognizable stablecoin and eighth largest cryptocurrency by market capitalization, Tether USDT, his negative assessment was over the poor PR work done by the company as opposed to any failure of the technology.

Stablecoins, a class of blockchain-backed cryptocurrencies which operate by pegging their value to an extrinsic and identifiable source, have become vogue in the second half of 2018. Where companies and startups were flocking to the ERC-20 token model for ICOs in 2017 and the first part of this year, the stablecoin model is becoming an increasingly attractive proposition, particularly for investors exhausted from the ongoing bear cycle. Compared to the price…