Stable Coin

(from investopedia) https://www.investopedia.com/terms/s/stablecoin.asp

  • Stablecoins are cryptocurrencies that attempt to peg their market value to some external reference.

  • Stablecoins may be pegged to a currency like the U.S. dollar or to a commodity's price such as gold.

  • Stablecoins achieve their price stability via collateralization (backing) or through algorithmic mechanisms of buying and selling the reference asset or its derivatives.

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