Stablecoins are at the heart of some of the biggest controversies in the crypto industry today—and yet more of them keep coming. On an almost weekly basis, companies and protocols keep announcing new stablecoin moves. So, what’s behind the boom?
A stablecoin is a type of cryptocurrency intended to have a stable (or relatively stable) price, typically pegged to the value of a government-issued currency like the U.S. dollar. The appeal is clear: enter the cryptocurrency market while avoiding the volatility of Bitcoin. Stablecoins are typically viewed as a bridge to trade into and out of other cryptocurrencies.
The best-known stablecoin is arguably Tether, which once claimed to be backed 100% by U.S. dollars, but now claims to be backed by commercial paper and other assets. But Tether is also one of the most controversial projects in all of crypto precisely because of lingering questions about how Tethers are backed and allegations about how they’re used to prop up the price of Bitc
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