Across global economies, there are 180 currencies around the world. These currencies are recognized by the United Nations. As we all know the usecase of these currencies - buy goods and services. And despite volatility in the forex market due to many factors, the value of these currencies is subject to very little change on a day-to-day basis. A stablecoin is a cryptocurrency that is collateralized to the value of an underlying asset. In simple terms, stablecoin - in the form of digital money - aim to mimic traditional, stable currencies. Stablecoins were introduced to solve the volatility issue of the crypto market, that potentially holds the adoption of cryptocurrencies for everyday payment purpose. In this report, we will outline some important facts and interpret important data about stablecoins that emerged this year. This data quoted in this report is taken from Blockdata and other sources as noted below.

1. S T A B L E C O I N S
2 0 1 9
D E C . 2 0 1 9
B L A C K C H A I N .
G U R U

2. Across global economies, there are 180 currencies around the world. These
currencies are recognized by the United Nations.
As we all know the usecase of these currencies - buy goods and services. And despite
volatility in the forex market due to many factors, the value of these currencies is
subject to very little change on a day-to-day basis.
A stablecoin is a cryptocurrency that is collateralized to the value of an underlying
asset. In simple terms, stablecoin - in the form of digital money - aim to mimic
traditional, stable currencies. Stablecoins were introduced to solve the volatility
issue of the crypto market, that potentially holds the adoption of cryptocurrencies
for everyday payment purpose.
In this report, we will outline some important facts and interpret important data
about stablecoins that emerged this year. This data quoted in this report is taken
from Blockdata and other sources as noted below.
O V E R V I E W
B L A C K C H A I N .
G U R U

3. A total of 134 stablecoin
projects are in development
(number may not be
accurate) and as of Jul-Aug,
a total of 26 stablecoins
have been closed.
Only 30% of the total number
of announced stablecoins are
live. USD-backed stablecoins
are the most active and have
the lowest attrition, while 67%
of closed stablecoins were
backed by gold.
$2 Billion was raised by the
top 15 stablecoins. Tether
made up half of this total with
it's recent IEO. Leader investors
name are undisclosed (Private
token Sale)
Off-chain is the most popular
form of collateral for stablecoin
projects.
B L A C K C H A I N .
G U R U
H I G H L I G H T S
of the
total announc
ed stablecoins
are live
of all active
stablecoins are
developed on
the Ethereum
network
30%
of closed
stablecoin
projects were
backed by
gold
67%
50%

4. Stablecoins — in the form of digital money — aim to mimic traditional, stable
currencies. Many stablecoins are pegged at a 1:1 ratio with certain fiat currencies,
such as the US dollar or the Euro, which can be traded on exchanges, this is
because the calculations in the financial markets are always based on major fiat
currencies. With stablecoins, it helps to simplify the crypto space Other
stablecoins can be pegged to other kinds of assets, such as precious metals like
gold, or even to other cryptocurrencies.
B L A C K C H A I N .
G U R U
D E F I N I T I O N
M a j o r e x a m p l e
Bitcoin Pizza Day
On May 18th 2010 Laszlo Hanyecz made known he was willing to buy 2 pizzas for a
price of 10,000 Bitcoins. At the time this was worth $41. Four days later, May 22nd,
the transaction took place. This date has become known as Bitcoin Pizza Day. The
index is the value of 10,000 Bitcoins at today's market price.
The Bitcoin Pizza Index is now at $73,091,294!
The volatility in the crypto markets still makes some businesses skeptical of crypto
as a valid means of payment.
In 2018, Bitcoin lost more than 80% of its value.
In 2019, since July, Bitcoin's value is down about 50%.
Stablecoins addresses this issue and provides a less volatile holding ground for
investors and traders during the upswings and crashes of the cryptocurrency
market. Not only that, stablecoins leverage the benefits of cryptocurrencies - such
as transparency, security, immutability, digital wallets, fast transactions, low fees
and privacy.

5. T Y P E S O F S T A B L E C O I N S
Fiat/Commodity backed
stable coin
These are known as asset-backed off-
chain stablecoins. These stablecoins
are backed by a regular fiat currency
such as Euro or USD, or any other
asset that holds value such as
precious metals like Gold.
Crypto-Collateralized
These stablecoins are backed by
cryptocurrencies such as Ethereum
Non-Collateralized
These are backed by anything. This
technology uses an algorithmically
governed approach to control the
stablecoin supply. This model is
known as Seigniorage shares.

6. B L A C K C H A I N .
G U R U
V O L A T I L I T Y
The Bitcoin Volatility Index
2.65%
Latest 30-
Day
Estimate
Latest 60-
Day
Estimate
3.34%
buybitcoinworldwide.com/volatility-index/
Important note: Daily price volatility of all cryptocurrencies can range from
5% to 160%. Price volatility is the main reason why stablecoins were created.
F i r s t S t a b l e c o i n
Tether is a stablecoin backed by a combination of cash, cash equivalents,
cryptocurrency assets, and loans. Tether tokens (USDT) are pegged 1:1 with the US
dollar and account for 80% of all bitcoin trading by volume. It was launched in
2014. by Ifinex inc. - both the operator and owner of Bitfinex and tether limited.
Currently, Tether is issued on the Omni Layer, Ethereum and Tron blockchain.

7. 0 50 100 150
Off-Chain
On-Chain
Unclassified
Algorithmic
Hybrid
Seigniorage
Out of 66 live stablecoins: 95% are asset-backed and the rest are either
algorithm backed or fall into 'others' category
Out of 134 stablecoins that are still being developed: 77% are asset-backed and
13% are algorithm backed and 10% fall into 'others' category
Out of 26 stablecoins that are closed : 76% were asset-backed and 20% were
algorithm backed and 4% fall into 'others' category
Out of 226 stablecoins, only 66 stablecoins are live. The rest are either in
development or have already closed.
Classification of type :
B L A C K C H A I N .
G U R U
F A C T S
76%
20%
4%
77%
13%
10%
95%
3% 2%
25 134 66
65% of the total number of stablecoins hold off-chain collateral (Fiat or
Commodity backed).

8. It is very prominent to see that Ethereum is the most common choice of
blockchain protocols the companies have used to launch a stablecoin.
Top 53 active stablecoins on the following protocols (current numbers may differ) :
Ethereum : 33; Bitshares: 8; Stellar: 6; EOS: 3; NEO: 2
As you can see Ethereum holds the highest place when it comes to launching
stablecoins on its platform. This is because the technology allows the exchanges to
integrate stablecoins without spending many resources on coming with another
infrastructure or protocol to support stablecoins.
B L A C K C H A I N .
G U R U
I S S U I N G A N D
F U N D I N G
Not Funded
62.1%
VC Funded
16.7%
ICO Funded
12.1%
ICO & VC
9.1%
Only 25 out of 66
active stablecoins
are externally
funded. Top VC
investors are
Digital Currency
Group, Blockchain
Capital, and
Andreessen
Horowitz.

9. USD-backed stablecoins are the most active and have the lowest attrition, while
67% of closed stablecoins were backed by gold.
B L A C K C H A I N .
G U R U
C U R R E N T
S C E N A R I O
NumberofProjects
EUR: Active 4, In Development 3.
USD: Active 18, In Development 13.
Unclassified: In Development 30, Closed 4.
Crypto: Active 15, In Development 24,
Gold: Active 11, In Development 24, Closed 16.
Other: Active 12, In Development 38, Closed 3.
Data on the current state of stabelcoins:

10. Regulators are concerned about this new asset and they think that this new asset
class may fall into the security category. In fact, the Securities and Exchange
Commission argue that stablecoins may potentially be violating current securities
law. This is due to the inherent nature of stablecoins that is leading the regulators
to keep an eye on this new asset.
Regulators are still studying and many institutions are still researching into this
new asset class.
Fiat-backed stablecoins require trust in a centralized entity and majority of the
stablecoins are of centralized nature that opposes the principle of decentralization
itself.
Stablecoins may pose a threat of destabilisation via external geopolitical factors.
Think about Black Wednesday in the UK, or the 1998 Ruble crisis that occurred in
Russia. If such an event occurs to the fiat a stablecoin is pegged to, it would be
disastrous for that stablecoin as well.
B L A C K C H A I N .
G U R U
L I M I T A T I O N S
It’s still too early to determine success, and the many emerging stablecoins out
there will have to experiment with these new concepts to see what works and
what doesn’t.