Post
Topic
Board Altcoin Discussion
Re: Stable coin without algorithm or backing
by
kotajikikox
on 18/06/2024, 07:39:28 UTC
How do you think would the the price in USD of such stablecoin always stay close to 1.00?
I hope I understand your question properly.

Stablecoins are backed by collateral assets that are usually controlled to help manage the price of the stablecoin itself. Any entity or organization that holds these stablecoins (if it is a centralized platform) or those who hold the collateral that is used to back up stablecoins usually try to control the supply and demand so the price stays as close to $1 at all times.