Review on USD Coin by Patejl Patejlson

Stablecoins should be stable and we should trust that they will stay stable no matter of what. If you are choosing the right stablecoin you are usually looking which can be trusted the most as it is quite important to have the stablecoin in which you can hide in whn there are harsh market times. And to know it stays stable. It is not usually the rule as we could see that there were crashes which resulted in the depegging, in the stablecoin going to zero or affecting the stability of stablecoins (especially this is true for algorithmic stablecoins). It is quite common that the stablecoin depegs from the asset its pegged into it. This is true for all of them. The important thing is how long does it take to get back to the pegg. How to choose the best stablecoin which can be trusted? In my humble opinion I suggest to look on the ones with enough long history, enough price data to be able to decide and see if the deppegging is quite common or rare. Another important aspect is the reserve which is used as a collateral to the minted stablecoin. Which collateral is used and how is stored. The best collateral

to use with stablecoins is for sure the fiat currency (EUR for EUR stablecoins, USD for USD stablecoin and so on). If we have fiat currencies as a reserves we need to look if they are in the same amount as stablecoins minted. It is also very important to know in which bank they are stored. By analyzing and answering all those questions I have come to conclusion that the best stablecoin (and most. trusted) at least fro now is USD coin by Circle.

It is also supported by the second largest exchange Coinbase. USD coin has a huge advantage that it is minted on multiple blockchains so you can choose for example the fastest and cheapest such as Stellar.

The USD Coin is regulated and fully collateralized (at least from audits) with the American dollar. Those reserves are securely stored within the respected American banks. It is widely used by many users and has the second largest capitalization between stablecoins and it is getting closer to the first spot (occupied by the Tether). It has not seen any major deppegs and has long price history to check.

I would not be concerned that the competing exchange Binance converted them to BUSD which has in my opinion only temporary effect on the capitalization. I guess it is matter of time it will be the most used stablecoin. It is never easy to have enough trust and to proove your stability but for me the USD coin earned its trust.