Stablecoin: What It Is, How It Works, and Why It Matters in Crypto

When you hear stablecoin, a cryptocurrency designed to maintain a stable value by being pegged to a real-world asset like the US dollar. Also known as crypto-backed currency, it’s the glue holding together volatile crypto markets. Unlike Bitcoin or Ethereum, which swing wildly in price, stablecoins keep their value steady—so you can trade, lend, or send money without losing half your balance in a day.

Most stablecoins are backed by cash or cash equivalents. USDT, the most traded stablecoin, issued by Tether, and largely backed by reserves including commercial paper and cash, and USDC, a transparent, regulated stablecoin issued by Circle and backed 1:1 by U.S. dollars held in reserve, are the big players. But not all are built the same. Some use crypto as collateral (like DAI), others rely on algorithms (like the failed TerraUSD). That’s why some stablecoins vanish overnight while others keep running for years.

Stablecoins aren’t just for traders. They’re used to send money across borders faster than banks, earn interest in DeFi protocols, and even pay for goods on crypto-friendly platforms. But they’re also under scrutiny. Regulators in the U.S., Japan, and Singapore are tightening rules around reserves, audits, and who can issue them. That’s why posts here dive into real cases—like abandoned airdrops tied to fake stablecoins, or exchanges pretending to offer stablecoin rewards that never materialize. You’ll find deep dives into tokens that looked safe but turned out to be ghosts, and others that actually deliver on their promise.

What you’ll find below isn’t theory. It’s real stories: coins that claimed to be stable but had zero trading volume, projects that promised dollar-backed tokens but vanished, and exchanges that listed fake stablecoins to lure in new users. If you’ve ever wondered why some crypto assets hold their value while others crash into nothing, this collection shows you exactly how to tell the difference—before you invest.