The question that comes up most frequently when it comes to stablecoins, is definitely which is the safest as to not de-peg and the best one to use for gambling. While there are many factors, when storing coins on your cold and/or hotwallet, if you are keeping some stablecoins on the wallet and it suddenly de-pegs, you are only racing the time to get them to an exchange to not lose money.
As we saw with the scammer Do-kwon’s stablecoin UST, it wasn’t safe at all, and after de-pegging leading to Luna crash, a $1 was suddenly not worth $1.
But let’s get to the point, there are a few options we would consider safe for stablecoin, and here are our choices until we see an actual government backed stablecoin, which would include tracking of your finances which you may not want.
#1 Binance USD (BUSD)
While there is a lot of FUD against Binance at all times, you need to remember that BUSD is not issued by Binance themselves, its actually issued by PAXOS and is a 1:1 USD-backed stablecoin approved by the New York State Department of Financial Services (NYDFS) and issued in partnership with Paxos.
This means, even if Binance goes down, your BUSD is still backed up 1:1, and Binance proof of assets show that they hold around 40% in BUSD. Its available via ETH (ERC-20) and BSC (BEP-20) and a few more networks, but its showing its speed and reliability so far.
We strongly believe the regulation behind this coin and that its backed 1:1 within the US gives it a strong role as the best option currently. Every casino with BSC chain accepts it as well usually.
#2 USD Coin (USDC)
USDC comes from the company Circle, and has not been the most used stablecoin, but they claim to be holding USD 1:1 however on a offshore account, which means audits are very hard to produce and there may be something behind the scenes we don’t really know about.
They have produced attestation every year, but has yet to produce a full audit. Circle is still though regulated as a licensed money transmitter in the US.
Solid choice, however it seems like Binance has opted out to convert every USDC deposit to BUSD, no reason was really given, but we take it as Binance trying to take BUSD over the rest of the market.
#3 USD Tether (USDT)
Last in our list is USDT, this is one of the most controversial stablecoins on the market, and while its the third most used cryptocurrency, its also the one that has never produced an audit, has minted / generated millions of USDT with no explenation from its founders.
As there is no way to check audit or holdings, though they do produce attestations every year, every one in the crypto space say this is one of the stablecoins to de-peg first.
No one can really predict if this will happen as USD Tether is a giant now, and it may be too big to fail, but we say take no risk, if you have an option to go with the others, do that.