The TOR Stablecoin
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The TOR stablecoin is the stable counterpart to the HEC utility token. Stablecoin refers to coins which maintain a value peg and are therefore not subject to the extreme volatility that can plague other cryptocurrencies. Cryptocurrency-backed stablecoins are issued with cryptocurrencies as collateral, which is conceptually similar to fiat-backed stablecoins. However, there is a significant difference between the two designs. While fiat collateralization typically happens off the blockchain, when cryptocurrency or crypto assets are used to back a stablecoin is done on the blockchain. This method is more decentralised and can use smart contracts to maintain the supply and price peg.
Stablecoins fill a massive gap in the industry as they are viewed as a safeguard against volatility. This protection is particularly powerful when utilised with the growing adoption of cryptocurrencies as a payment method for everyday goods and services. Since large sell-offs do not cause negative price action on stable coins they are a superior choice for partnering with payment systems.