Stablecoins are the recent ‘talk of the town’ as they provide access into the crypto world without any fluctuation in their price. Many hedge funds are investing in on the cryptos as they too believe in the benefits a successful stable coin can reap.
Stablecoin is a crypto token tethered to a currency usually the U.S Dollar that allows trading in the crypto sphere while its price does not fluctuate.
Sources claim that when chosen carefully a stable coin can give sheer returns while some have even gone as far as to say that it can return more than 40% of the initial investment. This claim can be supported through the statistics of Tether the biggest stable coin. Its market value raised to $2.8 billion in just 16 months.
Experts are saying that after seeing the growth of Tether people also want a share in the benefits and are willing to invest in the stable provided the opportunity of making huge profits. This move has created a lot of positivity in the sphere and firms are competing with each other for it.
Although USDT or Tether is the only name that comes up when one thinks bout stable coins, however, that is not the case as there are more than a hundred other stablecoins like Carbon, Havven, and Reserve etc.
While investing in stablecoins it is important in choosing the right one as some of them like the Gemini Dollar have not shown any significant growth since their launch. New stablecoins may displace Tether from its position as it faces many problems due to the lack of transparency it has shown concerning its reserves.