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A comment on Coinbase is launching support for the USDC stablecoin. Parent comment

Re:Coinbase is launching support for the USDC stablecoin by loeg on Tuesday October 23, 2018 @03:21PM (#18286542)
Traders, including HFT, are incentivized by the underlying value to keep the bid/ask spread very tight.
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Re:Coinbase is launching support for the USDC stablecoin by sgondala2 on Tuesday October 23, 2018 @06:21PM (#18288012)
Isn't this the same for any coin?

Is making a stable coin as simple as naming it a 'stable' coin ?

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Re:Coinbase is launching support for the USDC stablecoin by loeg on Tuesday October 23, 2018 @08:26PM (#18288672)
You could ask the same question about any security. Yes, traders in general are incentivized to bid/ask near the actual value of the underlying security.

The difference between securities in the abstract and a trustworthy, 100% reserve stablecoin is that the value of the latter is both known ($1) and stable (at least in USD terms).

Yeah, stablecoins really are as simple as naming it a stable coin and pledging 100% real currency backing, so long as you can convince traders you are trustworthy. E.g., I have some confidence Coinbase is trustworthy; I have zero confidence Bitfinex is trustworthy.

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