เรียนรู้ / crypto
A stablecoin targets a reference value
A target price is not an unconditional guarantee.
Investopedia distinguishes tokens supported by conventional reserves, crypto collateral and algorithmic mechanisms. Each seeks a relationship with an external reference, often a currency. Reserve quality, redemption terms and market confidence affect that relationship. Stablecoins are therefore different from both ordinary bank deposits and freely floating cryptocurrencies.
Research sources & methodology
Original sources and publication references.
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