Stablecoin War: The Best Stablecoins in 2019

Stablecoins 2019 Comparison

We know that the idea of cryptocurrencies is the total replacement of fiat money. However, being ever-volatile, altcoins aren’t always a good solution for investment and storage. That’s why another type of digital currency was created – stablecoins.

Why Stable Coins Matter?

Imagine that fiat money (papers that lose quality and have to be reprinted) is no longer a physical phenomenon, gets 100% digital and is protected against inflation. That’s what stablecoins are about. In layman’s terms, stablecoins are the digital currencies pegged to the cost of fiat money, or any other asset. Ideally, stablecoins price equals the cost of the corresponding fiat (for instance, $1). 

What Stablecoins Used For

As we mentioned above, the value of such coins is tied to traditional assets (money or other values) in a ratio of 1: 1. This ratio is maintained throughout the life of the coin, regardless of market conditions. Price fluctuations up or down are possible, but they are insignificant.

However, the position of stablecoin directly depends on the situation with the asset that supports it. For example, if the dollar rises in price, the value of the coin tied to it will increase. If it goes down, then it will also drag the digital analog down.

Stablecoins are divided into 3 groups depending on the method of stabilization:

  1. Fiat-collateralized: supported by fiat money or physical values (Tether, TrueUSD);
  2. Crypto-collateralized: the price is tied to the value of other cryptocurrencies (Dai);
  3. Non-collateralized: the price is regulated by the issue of coins, but at the same time it is not supported by either traditional money or other cryptocurrencies (Carbon, Havven).

There’s a growing number of stablecoins with the price pegged to gold. For instance, the value of Ethereum-based DigixDao cryptocurrency is backed up by golden coins stored in Singapore banks.

Stablecoins collateralization types

Without further ado, let’s review best stablecoins 2019 and compare them for you to see which variant is more reliable and attractive. Our list of stablecoins includes currencies pegged to US dollar and other assets.

Tether (USDT) – The Largest Stablecoin on the Market

Tether Stablecoin

The idea of the stablecoin created by Tether company was born long ago as in 2012! After being listed in exchanges in 2015, Tether has become one of the most popular and successful assets on the market being a quick and cheap way to transfer value from one exchange to another, without the need for using “unstable” cryptocurrencies.

The convenience of Tether, as well as the fact that stablecoin was a substitute for the US dollar, appealed to both stock magnates and ordinary traders. Everyone simply used this payment instrument, not thinking about whether it was actually backed up with dollars or not. 

Tether stablecoin price chart
Tether (USDT) Price History

In early 2017, USDT authors began to “print money”, as traditional banks in the US and other countries do. At first, they stated that they would not increase the money supply of stablecoin. But then they did the opposite, allegedly printing Tether for the sake of increasing the price of BTC in mid-2017.

Only after a significant number of fraud allegations hit Tether in mid-2018, the price of the asset fell from $ 1 per token to 85 cents. It failed because Tether sharply increased the number of tokens in the circulation, making it jerky until the market capitalization reached billions of dollars, whereas initially, Tether had only a couple of tens of millions. Being the stablecoin market monopolist, Tether started releasing USDT coins without being really backed up by the equivalent in the US dollar

Despite all accusations, Tether stays the king in stablecoins list and is widely used by traders. According to Wall Street Journal, about 80% of all BTC trading is done with the help of USDT, so this stablecoin ensures liquidity on the crypto market. 

  • Founded: 2015
  • Pegged to: US Dollar
  • Market cap: $4 036 220 771
  • Circulating supply: 4 042 555 317 USDT
  • Historical price fluctuations: $0,84 – $1,21
  • Website: https://tether.to/ 
  • Traded on: Binance, CoinSpot, BitFinex, Kraken
  • Mechanism of stabilization: Each USDT Collateralized token has a corresponding $1 U.S. invested in an owned account

Buy Tether Stablecoin

Buy Tether USDT Stablecoin

TrueUSD (TUSD)

TUSD Stablecoin

At the moment it is one of the most reliable and proven stablecoins, as the company creating it has an open and transparent policy. The first independent audit was conducted on March 1, 2018, proved that almost $ 1.8 million is actually backing up TrustToken reserves. Today, TUSD ERC-20 token is the best stablecoin on Binance and its price keeps at $1 level.

TrueUSD price graph
TrueUSD (TUSD) Price History

At the moment, 100% is secured by US dollars on legally protected escrow accounts with several partners of the bank so that you can trade, send and receive payments with peace of mind.

How does TrueUSD work? 

Buyers pass the KYC / AML check and send USD to the trust company with an escrow agreement. When they check your funds, their API instructs our smart contract to issue the equivalent TrueUSD to your Ethereum public address.

To redeem the US dollar, you transfer the KYC / AML check, send a smart contract with your TrueUSD tokens from the Ethereum registered address, and then the escrow bank will send you the funds. Your property on the account is legally recognized, and every 1 TrueUSD token you receive reminds of a redeemable certificate of ownership for $ 1 through escrow.

  • Founded: 2018
  • Pegged to: US Dollar
  • Market cap: $194 908 143
  • Circulating supply: 194 403 771 TUSD
  • Historical price fluctuations: $0,934 – $1,36
  • Website: https://www.trusttoken.com/trueusd 
  • Traded on: Binance, Bittrex, OKEx, CoinEx, KuCoin\
  • Mechanism of stabilization: Every TUSD token is backed by $1 U.S. held in an escrow account by third parties.

Buy TrueUSD

Buy TrueUSD Stablecoin

Dai (DAI): Crypto-Collateralized Stablecoin

DAI Stablecoin

Although the price of Dai stablecoin also equals $1, Dai is backed by Ethereum-based smart contracts with redundancy. Dai is stabilized by external market factors such as collateralized debt positions (CDPs), autonomous response mechanisms, and external economic incentives. Dai is more decentralized because only users can create and destroy the token (DAI tokens appear only after the deposit has been paid and disappear after payment of the debt).

Being issued on MakerDAO platform, DAI is more transparent and fair than Tether – all operations are run by the smart contract. 71th cryptocurrency by market cap, DAI proves to be efficient for betting, financial markets, international trading, and transparent audit.  

It should be noted that Maker also gives users the chance to choose the collateral types:

  • Founded: 2017
  • Pegged to: US Dollar (backed by ETH)
  • Market cap: $78 554 998
  • Circulating supply: 78 030 430 DAI
  • Historical price fluctuations: $0,72 – $1,37
  • Website: https://makerdao.com/en/dai/ 
  • Traded on: HitBTC, Coinhub, Etfines, Gate.io, DDEX, OasisDex
  • Mechanism of stabilization: For the generation of Dai tokens, users need to purchase and stake an equal value (in USD) of Ethereum tokens. When the cost of Dai rises, users will be incentivized to create more. If the price falls, users will be incentivized to sell their DAI back to the pool.
Buy DAI Stablecoin

USD Coin (USDC): A Stablecoin by Coinbase

USDC Stablecoin

USD Coin is the stablecoin crypto created by Coinbase and Circle company. It’s positioned as a stablecoin that has financial and operational transparency. The exchange of cryptocurrency for fiat is carried out in the Circle USDC application which emits cryptocurrency. All functions that users perform through banking systems are available in the application: conversion, money transfers and others.

This Coinbase stablecoin can be emitted by banks. Center focuses on the global market and plans in the to attract more international banks for that. It partners with such companies as Goldman Sachs, Bitmain, Blockchain Capital and others. 

Here’s one more proof of its success:

  • Founded: 2018
  • Pegged to: US Dollar 
  • Market cap: $420 826 410 
  • Circulating supply: 418 441 310 USDC
  • Historical price fluctuations: $0,97 – $1,11
  • Website: https://www.circle.com/en/usdc 
  • Traded on: Coinbase, Poliniex, Binance, KuCoin, Okex, Bit-Z, and others
  • Mechanism of stabilization: Each USDC token is backed up by $1 the U.S. invested in an owned account. Circle company ensures low fluctuations.
Buy USDC Stablecoin

Paxos Standard Token (PAX)

PAX Stablecoin

This popular stablecoin was created as the alternative to Tether (USDT). PAX is traded in conjunction with other assets that are available on the site. In particular, you can use PAX to purchase or sell Bitcoin, Ethereum, Binance Coin, EOS, XRP, as well as Stellar Lumens. Being a ERC-20 token, Paxos ensures transparency. While PAX coins are circulating, US Dollars are hold in reserve at FDIC-insured US banks and after redeeming, the PAX coins are destroyed.

PAX has become #39 coin in Top-100 cryptocurrencies. One of the main reasons for it is easy integration of Paxos payments: it’s a safe and reliable instrument for transactions. What else makes it superb?

  • Absence of transaction fees;
  • 24/7 customer support Ethereum-based transactions;
  • Attestation by Withum company;
  • Full backing up by US dollar.

Paxos stablecoin has already gone through two audits, both successful: specialists of Nomic Labs claimed they revealed no issues.

  • Founded: 2018
  • Pegged to: US Dollar 
  • Market cap: $180 536 144
  • Circulating supply: 185 817 402 PAX
  • Historical price fluctuations: $0,97 – $1,10
  • Website: https://www.paxos.com/pax/ 
  • Traded in: Coinbase, Cex.io, Coinmama
  • Collateralized 1:1 by the USD, controlled and regulated by the NYDFS.
Buy PAX Stablecoin

Bitshares (BitUSD)

BitUSD Stablecoin

Having undergone serious price fluctuations (on August 12, BitUSD cost $125!), BitUSD stablecoin stayed on the market, and its creators continue improving the functionality of their asset. What makes it different from Tether? With BitUSD, you can be sure that its value is totally backed up by futures, fiats, gold, silver, and other assets.

BitUSD has the following advantages:

  • It’s a relatively reliable investment tool due to the predictable price of the asset and minimal volatility;
  • Hedging against sudden price action and sudden cryptocurrency market movements;
  • This unit of account is different from assets with capital gains or losses.
  • Founded: 2015
  • Pegged to: US Dollar 
  • Market cap: $3 553 501
  • Circulating supply: 3 569 420 BITUSD
  • Historical price fluctuations: $0,43 – $125
  • Website: https://bitshares.org/technology/price-stable-cryptocurrencies/ 
  • Traded on: BitShares, OpenLedger
  • Collateralized 1:1 by the USD. Backed up by fiat, silver, gold, and other assets

EOSDT: A framework for Stablecoins

EOSDT Stablecoin Framework

EOSDT token is the asset of Equilibrium smart contract platform that serves for creation of asset-backed tokens. To put it simply, it’s the world’s first decentralized stablecoin on the EOS blockchain. Every EOSDT is pegged to US dollar, but the most interesting part is collateralization. Users can generate EOSDT and choose the underlying asset! How does it work?

  1. User generates EOSDT tokens with EOSIO technology on the basis of Equilibrium platform.
  2. The collateralization options are chosen – they are settled in the smart contract.
  3. EOSDT tokens can be used in any convenient way (for storage, crypto exchange, payments, etc).

EOSDAQ, Newdex and DEXEOS have listed EOSDT as a stablecoin, so its adoption is in the progress.

  • Founded: 2019
  • Pegged to: US Dollar 
  • Market cap: ?
  • Circulating supply: 5 402 356 EOSDT
  • Historical price fluctuations: $0,91 – $1,32
  • Website: https://eosdt.com/  
  • Traded on: EOSDAQ, Newdex, DEXEOS, HitBTC
  • Crypto-collateralized, or collateralized with any asset chosen

Gemini (GUSD)

GUSD Stablecoin

The Gemini Dollar (GUSD) is the result of a collaboration between the Gemini Trust Company (founded by Winklevoss twins), LLC and the New York Trust company. The token is pegged 1: 1 to the US dollar and built on the Ethereum blockchain in accordance with the ERC-20 standards. 

GUSD was created as the direct competitor for the Tether cryptocurrency. Although the company was accused of non-transparent operations, according to Cameron Winklevoss, to date, none of the existing coins pegged to the dollar matches the true name of stablecoin.

Gemini dollar has a few unbeatable advantages:

  • The Gemini Dollar cryptocurrency is under the direct supervision of the New York State Department of Financial Services (NYDFS) and is fully subordinate to US laws and regulations;
  • The dollars that the coin is supported with are kept in a special bank account of the American holding company State Street Corporation, which was developed by 150 programmers;
  • The company account is insured by the Federal Deposit Insurance Corporation (FDIC);
  • The number of dollars in the account strictly corresponds to the number of tokens in circulation. This equality is monitored by independent audit firm BPM Accounting and Consulting. 
  • Founded: 2018
  • Pegged to: US Dollar 
  • Market cap: $6 854 893
  • Circulating supply: 6 760 362 GUSD
  • Historical price fluctuations: $0,95 – $1,19
  • Website: https://gemini.com/dollar/ 
  • Traded on: Coinbase, Gemini exchange, Okex, Hotbit, Bitmart, and others
  • Collateralized: 1:1 by the USD, controlled and regulated by the NYDFS

Binance GBP Stable Coin (BGBP)

BGBP Stablecoin

A few weeks ago, on July 29, Binance has launched its own stablecoin – Binance GBP. It’s pegged to Great Britain Pound, and is totally backed up by the money on company’s account. The token is based on Ethereum platform.

  • Founded: 2019
  • Pegged to: GBP
  • Market cap: ?
  • Circulating supply: 700 001 BGBP
  • Historical price fluctuations: $1,19 – $1,25 (~1 £)
  • Website: https://www.binance.je/en 
  • Traded on: Binance
  • Collateralized: 1:1 by the Great British Pound, reserves are stored on Binance bank acocunt

StableUSD (USDS)

StableUSD Stablecoin

This cryptocurrency was created by Stably blockchain startup. StableUSD is secured by US dollars held by Prime Trust, an American regulated trust company.

According to the company’s blog, StableUSD uses a proven centralized model to fully back up each issued token. The emission process will allow the use of Bitcoin (BTC), Ethereum (ETH) or Tether (USDT). The transferred cryptocurrencies will be converted into US dollars in the free market through the intermediary of a third-party manager.

The corresponding amount in StableUSD will then be released and sent to the client through a smart contract, ForkLog reports.

  • Founded: 2019
  • Pegged to: US Dollar
  • Market cap: $4 024 737
  • Circulating supply: 4 029 498 USDS
  • Historical price fluctuations: $0,89 – $1,13
  • Website: https://www.stably.io/ 
  • Traded on: Binance, Bittrex, Codex
  • Collateralized: 1:1 by the USD. Backed up by US dollars held by Prime Trust company

Reserve (RSV)

Reserve Stablecoin

Founded by Silicon Valley investors, Reserve is a USD-pegged cryptocurrency that’s 100% collateralized by fiat money. What makes it different from the mass of other stablecoins? The underlying blockchain uses Reserve platform and RSR fluctuating protocol token that stablizies RSV and confers the cryptographic right to purchase excess Reserve tokens as the network expands. 

Reserve gives holders the opportunity to keep their assets safe and secure: the project creators position the platform as a great alternative to traditional storage in banks. Besides, Reserve is claimed to be a serious competitor to Libra coin, being more decentralized and transparent.

Right now, you can buy Reserve utility token – RSR (current price $0,0027). 

  • Founded: 2019
  • Pegged to: US Dollar
  • Market cap: $11 320 421
  • Circulating supply: 4 079 834 931 RSR
  • Historical price fluctuations: $0,00203 – $0,00422
  • Website: https://reserve.org/ 
  • Traded on: Huobi global
  • Collateralized: 1:1 by the USD

Other interesting stablecoins

While USD-pegged crypto assets are on the rise, there are a number of non-collateralized and crypto-collateralized currencies developing. For instance, Carbon and Havven coins are getting more popular.

A curious idea belongs to creators of Neutral Dollar (NUSD): it’s described as a metastable basket that consists of underlying stablecoins to improve the liquidity of its constituents and offer users a lower volatility token (thus, it’s backed by other stablecoins). Facebook’s Libra is also entering the market: it has all chances to set the new standards in the industry. 

Metal-based stablecoins are very attractive for investors seeking to buy assets with physical collaterals. For instance, 1 DGX (Digix Gold Token) represents 1 gram of gold on Ethereum: it costs around $48, and company’s market cap is $5 038 292. It allows users to buy golden bars on blockchain and trade DGX token on Ethereum platforms.

In the same manner, GOLDX token allows to get gold savings in three simple steps (currently, the application is in Beta version).

Bitcoin-backed stablecoin

Another interesting stablecoin is Wrapped Bitcoin (WBTC): it’s an ERC-20 token backed 1:1 with BTC. This asset was created to be used on decentralized exchanges with a higher level of liquidity. Besides, it introduces smart contracts for Bitcoin making trading more transparent.

WBTC is ideal for trading, financial institutions, and dApps.

Stablecoin Wars Bottom Line

It’s hard to select the best stablecoin in 2019: each asset has its pros and cons. Although Tether is the most popular asset of its kind, it’s far not the most reliable one – in 2018, numerous safer alternatives appeared on the market. Below, you can check the stablecoins comparison:

StablecoinYear LaunchedPegged toMarket capSupply
Tether (USDT)2015US Dollar$4 036 220 7714 042 555 317 USDT
True USD (TUSD)2018US Dollar$194 908 143194 403 771 TUSD
DAI2017US Dollar$78 554 99878 030 430 DAI
USD Coin (USDC)2018US Dollar$420 826 410418 441 310 USDC
Paxos (PAX)2018US Dollar$180 536 144185 817 402 PAX
Bitshares (BitUSD)2015US Dollar$3 553 5013 569 420 BITUSD
EOSDT2019US Dollar?5 402 356 EOSDT
Gemini (GUSD)2018US Dollar$6 854 8936 760 362 GUSD
Binance GBP Stable Coin (BGBP)2019GBP?700 001 BGBP
StableUSD (USDS)2019US Dollar$4 024 7374 029 498 USDS
Reserve (RSV)2019US Dollar$11 320 4214 079 834 931 RSR

While USD-pegged crypto assets are on the rise, there are a number of non-collateralized and crypto-collateralized currencies developing. For instance, Carbon and Havven are getting more popular.

Facebook’s Libra is also entering the market and it has all chances to set the new standards in the industry, if it manages to survive the hearings in the U.S. Congress. We’ll keep you updated on this continuous stablecoin war.

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