2018: The Year of Stable Coins

As the Cryptocurrency markets continues to evolve, we have seen an increasing number of stable coins as an alternative to the very vague "Tether (USDT)". Here are some of the top stable coins released in 2018:

1. TrueUSD: USD-backed ERC20 stablecoin

Released in Q1 of 2018, TrueUSD offers token-holders full collateral, regular attestations of escrowed balances, and legal protections against misappropriation of underlying USD. Each 1 TUSD is redeemable for $1.00 USD. TrueUSD is made possible by tokenizing US Dollars through TrustToken’s legal and technical platform. TrustToken is a platform that tokenizes real-world currencies (such as USD and Yen) and assets (such as real estate, art, and IP).

Currently available trading pairs on the following exchanges:
Binance, Bittrex, Kucoin, OKEx, UpBit, Cryptopia, HITBTC, IDEX, COSS, DigiFinex.

2.. MakerDAO (DAI):

Started in early 2017, proposing to peg its stablecoin, known as DAI, to US dollar. However, it is not backed by USD like USDT or TUSD. Instead, it is backed by Ethereum. Because it is backed by other cryptocurrencies, it is called a crypto-collateralized stablecoin. DAI's acceptance as a viable stablecoin has been very slow due to the high complexity of its model. The lack of testing with their model has caused a vast underacceptance in the marketplace.

3.. USDX: A new innovation in stable coins

Expected to release in early 2019, USDX has taken a new approach to the stablecoin. USDX offers a coin that avoids the pitfalls of using fiat currency as collateral. The USDX token matches the value of the US Dollar by using an innovative algorithmic protocol that erases the risks associated with using USDT or other fiat-backed coins. It generates stability via its algorithmic central bank, which expands and contracts the supply of the USDX token to match the US Dollar’s real-time value. While USDX is not the only contender utilizing an ‘elastic supply’ mechanism, it has superior decentralisation and stability on account of eliminating the need for collateral. The Singapore-based project is in its beginnings, but the creative vision may deliver a stable coin that is ideal for both trading and exchange within Dapps.

4.. USDC: a USD-pegged ERC-20 token.

Goldman Sacs-owned Circle and the CENTRE consortium have officially released USD//Coin (USDC). The token is available on Poloniex, Circle Trade and Kucoin, with Coinplug, Digifinex, IDEX, OKCoin, Paradex, Tokenlon and XDAEX also listed as exchanges that are part of the USDC ecosystem. SDC is designed to maintain $1 peg through fiat reserves, and is supposed to be fully collateralized at all times. Circle says they will be publishing monthly proofs of reserves made by certified public auditors (something Tether has failed to do).

5.. Gemini Dollar:

In September, the Winklevoss twins launched their new stablecoin for their Gemini platform. The Gemini dollar, which is pegged to the U.S. dollar at a 1:1 ratio, is to become the world’s first regulated stablecoin and seeks to allow users to send and receive U.S. dollars on the ethereum network. The twins say the Gemini dollar "is the missing link between the traditional banking system and the crypto economy.”

6.. Paxos (PAX):

Launched in September of this year, the newly minted Paxos Standard has been approved and will be regulated by the New York Department of Financial Services (NYDFS), as a fully backed US dollar stablecoin. PAX and the Gemini Dollar are the first cryptocurrency stable coins to gain approval by the NYDFS. The Paxos Standard token is designed to provide liquidity for investors trading in crypto assets by providing a "digital alternative to cash" that will see instant transaction settlements, according to the company. Built based on ethereum's ERC-20 standard, this stablecoin can be sent between any two wallets on the ethereum network. In order to maintain the coin's value, tokens are destroyed when redeemed, and tokens still in circulation will be backed by dollars held in in the firm's custody.

7.. HUSD:

The Singapore cryptocurrency exchange, Huobi, announces the creation of what it calls a “stablecoin solution" on Friday, Oct. 19. It is set to go live soon. The project will consist of Huobi’s own stablecoin asset which investors can use as a go-between to interact with four USD-backed stablecoins currently listed on the exchange. (Paxos Standard (PAX), True USD (TUSD), USD Coin (USDC) and Gemini Dollars (GUSD)). HUSD will act as a sort of aggregator of all four. It be tradeable against other cryptos, starting with the controversial stablecoin Tether (USDT), followed by Bitcoin (BTC) and Ethereum (ETH).