DAI Has Been Struggling to Maintain Its $1 Peg, but the MakerDAO Community Believes It Will Soon Be Crypto’s ‘Default’ Stablecoin

Stability has become a holy grail for the crypto market, and right now, one of the biggest stablecoins is MakerDAO‘s DAI. Launched in December 2017 as an ERC-20 token, it’s pegged 1:1 with the United States dollar, with its peg being maintained via over-collateralization with ether (ETH). In other words, users receive the equivalent of $1 in DAI by depositing more than $1 in ETH, and they can later reclaim their collateral by repaying the DAI they’ve received plus a “stability fee” in MKR, MakerDAO’s other (nonstablecoin) token. By charging…

Struggling Ethereum Giant ConsenSys Seeks $200 Million VC at $1 Billion Peg

Get Exclusive Analysis and Investing Ideas of Future Assets on Hacked.com. Join the community today and get up to $400 in discount by using the code: “CCN+Hacked”. Sign up here. Get Exclusive Analysis and Investing Ideas of Future Assets on Hacked.com. Join the community today and get up to $400 in discount by using the code: “CCN+Hacked”. Sign up here. Ethereum development studio ConsenSys is struggling financially and is now trying to raise $200 million from outside investors to stay afloat. The fundraising drive comes just four months after the…

MakerDAO Users Vote on ‘Stability Fee’ Increase as DAI Stablecoin Peg Wobbles

Decentralized Autonomous Organization (DAO) MakerDao (Maker) will let users vote on whether or not to raise a fee used within its Dai (DAI) stablecoin, the organization confirmed in a blog post on Mar. 4. Dai, which is a USD-backed stablecoin, is different from Maker’s utility token, MKR, which is trading at $678 by press time. The stablecoin DAI is in part used for loans via a structure administered by Maker known as a collateralized debt position (CDP). Now, in order to correct trailing exchange rates for Dai, which have dropped…

Lack of Transparency to Blame for Tether’s Loss of USD Peg: Novogratz

Five days since losing its U.S. dollar peg, fiat-backed cryptocurrency tether (USDT) continues to trade at a discount to its supposed $1.00 valuation. Defenders have largely chalked up the markdown to FUD, arguing that supporters of other “stablecoins” are launching a coordinated assault on tether, which has long dominated this market niche. However, billionaire investor and cryptocurrency bull Mike Novogratz says that USDT’s woes are the fault of its issuer’s lack of transparency. USDT/USD | Kraken | Source: TradingView “I think Tether didn’t do a great job in terms of creating…

The History of Stablecoin Tether and How It Has Lost Its $1 Peg

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, you should conduct your own research when making a decision. Tether, a cryptocurrency that has long been a point of contention in the community, has seemingly been uppegged from the US Dollar. The stablecoin, by virtue of that very description, was linked to the US Dollar at a 1:1 ratio. Simply put, every Tether token that was minted had to be backed by a US Dollar. Concerns around the validity of Tether’s reserves of…

Bitcoin Explodes to $7,500 as Tether Loses USD Peg

Bitcoin price surged 9 percent within hours as Tether started losing its grip on the USD-peg. The BTC/USD pair closed yesterday on a modest 2 percent gain in pennant formation action following the recent drop. Nevertheless, the couple started picking momentum during the early Asian trading session and jumped to as high as 7800-fiat from its previous low near 6300-fiat. At the same time, Tether’s USDT/USD pair lost came crashing down below 0.95-fiat at the beginning of the Asian session. It eventually formed lower lows towards 0.85-fiat, before correcting higher…

Drivechain: The Two-Way Peg Solution for Bitcoin Scalability

As the world is becoming more and more aware of cryptocurrencies, their popularity and adaptation are also on the rise. The rise in adoption has also brought to light the inefficiencies with regards to keeping up with the increasing demand. While bitcoin blockchain stills look to be healthy for now, but with the rising demand, it may soon turn vulnerable and probably may come to a halt. This scalability issue of the bitcoin is due to a variety of aspects of how the Bitcoin protocol works. As Bitcoin uses blocks…