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
Public Blockchain
An open sourced blockchain where participation is public and permissionless
Validator
A block-signing participant of a Proof of Stake blockchain network, whom have significant tokens staked on the network.
Block Explorer
Application or websites which display information such as status of transactions or data contained in a block of a given public blockchain network.
Token
Blockchain based unit of value issued by an organization, which grants token holders a right to participate in a network.
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