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Stable Coins have to be pegged to something

Important Aspects of Stablecoins: The Difference Between Pegging, Collateralization, and Redeemability

Stablecoins have been making the headlines in recent months, attracting big investors, tempted by the allure of a on ‘non-volatile’ cryptocurrency. At first, we usually pay attention to the backing connection, in other words, to the coin’s stabilizing mechanism.