There are many types of crypto assets in Indonesia, one of which is stablecoins. Stablecoins are cryptocurrencies that are guarantee the value of the underlying assets.
Want to know more? Check out the explanation below.
Crypto assets will certainly be an interesting world for you. You understand what Bitcoin is, understand its function, and its price movements. After that, you will be interested in finding out about the world of blockchain and other crypto or cryptocurrency assets.
You will find out what are mining coins, DeFi coins, and also stablecoins.
In general, stablecoins are cryptocurrencies that are guarantees the value of the underlying assets. Typically, stablecoins are pegged at a 1: 1 ratio with the assets that follow.
Say like Tether (USDT) which adopts the US Dollar value. In addition, there are also stablecoins that follow the price of gold such as PAX Gold and many other types of crypto assets.
Each crypto asset has a different function or utility. This means that each coin has its own advantages and disadvantages.
One of the advantages of stablecoins is that they are not affected by the extreme price volatility that is influenced by other cryptocurrencies. So that the price tends to be more stable or does not experience fluctuations that fluctuate significantly in a short time.
Then what are the drawbacks?
The weakness of stablecoins is that they only depend on the price of the underlying asset. So, the increase is not too high quickly. This is unlike crypto assets which are based on supply and demand. Because the utility is different.
In fact, for some traders, crypto assets based on stablecoins are not suitable for investing or trading because the price movements are not too high. The price increase also depends on the increase in the price of the guarantor’s asset. For example USDT which depends on the price of US Dollar.
If so, why should we buy stablecoins? Because stablecoins still have a function, it’s just that their function or utility is different.
Usually, stablecoins are more used as a means of payment or exchange. For example, such as USDT in Indodax where Indodax provides the market with USDT exchanges, in addition to Rupiah.
IDK crypto assets are crypto assets that adhere to the Rupiah price. IDK is a stablecoin pegged at 1: 1000 IDR (Rupiah), built on the Ethereum network according to the ERC20 token standard. IDK seeks to drive digital asset adoption in Indonesia, Southeast Asia’s largest economy.
For every Rp1,000 deposited to a custodian appointed by the IDK Foundation, one IDK will be issued. For every Rp1,000 that is withdrawn from the custodian appointed by the IDK Foundation, one IDK will be removed from circulation.
Wow, are you interested in IDK? You can read the full news about IDK stablecoins at Indodax.Academy.
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