Fiat-Pegged Cryptocurrency
By CoinGecko | Updated on Mar 03, 2020
Certain cryptocurrencies are pegged to an underlying asset, such as the USD Coin (USDC), which is a stablecoin by Coinbase. A USDC token is issued for every $1 kept in Coinbases' reserve.
A pegged cryptocurrency can be pegged to any asset and then issued on a blockchain. As long as the cryptocurrency can be redeemed for the underlying asset, it can be considered as a pegged cryptocurrency.
Related Terms
Custody
Protective care or guardianship of an asset.
Burned Tokens
Tokens which have been sent to addresses whose private key are not known, effectively becoming unusable.
Trustless
Entirely verifiable, without needing to trust or assume an action is done completely and in good faith.
Hard cap
The maximum amount that an ICO will be raising.
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