“Stable coin” is a term used in cryptocurrency to describe cryptocurrencies meant to hold stable values. For example, Tether (USDT) is a blockchain based asset meant to trade for $1 USD. Tether is a “price-stable cryptocurrency” that is “pegged” to the U.S. dollar.
Each stable coin has a unique set of mechanisms, but they all generally work the same way: They hold collateral of some type and manage the supply to help incentivize the market to trade the coin for no more or less than $1. For some, like Tether or TrueUSD, the concept is to hold actual dollars in reserve that are redeemable for the token. For others, like Dai, they hold crypto assets in reserve and have a lending system.
The exact mechanics behind each stable coin can be a bit complex, but the gist is really as simple as “a coin meant to hold a stable value” (just like the term “stable coin” implies).
The reason there is a need for a stable coin, is simple to understand as well. That reason is this: In the cryptocurrency world, it isn’t always easy to circulate dollars due to regulations and restrictions.
A “stable coin” is a cryptocurrency that is pegged to another stable asset, like gold or the U.S. dollar. It’s a currency that is global but is not tied to a central bank and has low volatility. This allows for practical usage of using cryptocurrency like paying for things every single day.
Smartgems will be conducting a token sales (soft launching) on its stablecoin SGSS on 01 November 2018. This initial offering is for accredited member and invitation basis only.
“SGSS is a cryptocurrency that is pegged to the value of an underlying asset/jewellery. It is a stable cryptocurrency because the value of these tokens are kept stable in relation to the underlying asset.”
For more information, please visit the official website at https://ito.smartgems.io