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Learn the concepts behind stablecoins and how they work -Breaking


Cryptopedia: Find out the basics of stablecoins, and how they work

Cointelegraph’s director of video production Jackson DuMont dissected stablecoins in the latest episode of Cryptopedia. DuMont discussed and clarified algorithmic stablecoins, the TerraUSD (UST), and its recent failure to keep the dollar peg.

DuMont defined stablecoins as “a crypto whose value is tied to an outside asset such as the United States Dollar (USD).” According to DuMont, stablecoins are very vital to the crypto industry as they provide users with the ability to store their assets without worrying about the depreciation of the assets’ value. This feature is very useful when bear markets are in place, as there are many unknowns.