Stablecoin Evolution: From Mastercoin To Libra

The exchange rate of one currency is tied to the value of another currency, basket of currencies, or other liquid assets - for example, oil or gold. The weak point of stablecoins linked to fiat currencies is the need for an intermediary who must accept funds, store them, and maintain the rate.

Unlike Tether, the backup asset in their model was not a fiat currency, but BitShares tokens directly. A simple fiat security model combined with a good relationship with Bitfinex and other large crypto exchanges has contributed to the growth of Tether among crypto traders.

Timeline of Bitshares, Tether