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Stablecoins vs. CBDCs

Most days, The Daily Squeeze is charts, narratives, and people debating whether we're entering the bear market.
But today we're zooming out and breaking down two digital money ideas that get lumped together way too often: stablecoins vs. CBDCs.
Let's dive in 👇

We're start with the shared goal.
Both stablecoins and CBDCs are designed to be:
👉 Digitally native;
👉 Price-stable (not swinging 10% a day);
👉 Easier to move than traditional money.
... And that's where the similarities mostly end.

Stablecoins: crypto's version of boring money (and that's a compliment)
Stablecoins are cryptos designed to hold a steady value, usually by being pegged to something stable.
The goal isn't number go up. It's... number stay put.
They act as the calm center of crypto - a place to hold value, trade against, or move money without dealing with wild volatility.
There are a few main ways stablecoins stay stable:
👉 Fiat-backed: pegged to currencies like USD and backed by reserves;
👉 Crypto-backed: stabilized using other crypto as collateral;
👉 Commodity-backed: tied to assets like gold.
Because they live on blockchains, stablecoins can move globally, settle quickly, and plug directly into DeFi apps.
That's why traders, builders, and DeFi users rely on them so heavily.

Meanwhile...
CBDCs: digital cash issued by governments
CBDCs (Central Bank Digital Currencies, if we're talkin' full names) are digital versions of a country's official currency, issued and controlled by the central bank itself.
They're not crypto-native. They're not decentralized. They're digital cash, but government-run.
CBDCs are built to modernize the existing financial system - not to replace it.
Depending on the design, they can be:
👉 Used by the public like digital cash;
👉 Used behind the scenes by banks to settle large transactions
In both cases, the central bank stays in control of issuance, rules, and monetary policy.

Source: @BitcoinMktJrnl

Now, the real difference (this is the important part)
At a high level, the split looks like this:
👉 Stablecoins are issued by private companies or decentralized protocols.
👉 CBDCs are issued by central banks.
But philosophically, it's bigger than that.
Stablecoins are built to work globally, plug into crypto and DeFi, and operate on open blockchains.
CBDCs are built to strengthen government control over money, improve payment efficiency, and enforce monetary policy digitally.
👉 One leans toward open networks.
👉 The other leans toward centralized oversight.

And this is why people care so much.
Stablecoins raise questions about:
👉 Regulation and reserve transparency;
👉 Trust in issuers;
👉 What happens if something breaks.
CBDCs raise concerns about:
👉 Privacy;
👉 Surveillance;
👉 How much control governments could have over money.
Same goal. Very different trade-offs.
And like it or not, we're probably heading toward a world where both exist at the same time.

Source: Binance News / #BitDegree / Coinmarketcap

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#goal #money #Stablecoins #CBDCs

Altcoins vs. memecoins vs. wrapped coins vs. hybrid tokens

Scroll through the charts, and you'll notice something pretty fast:
Crypto is not just Bitcoin.
There are hundreds of other coins and tokens - some serious, some experimental, some… questionable.
Today's Back to Basics topic is how to make sense of that pile.
We're breaking down the main types of crypto you'll run into once you leave Bitcoin territory: altcoins, memecoins, wrapped coins, and hybrid tokens - and why they exist in the first place.
Let's take a look 👀👇

1/ Altcoins
Altcoins literally means alternative coins. It's the umbrella term for any crypto that isn't Bitcoin.
Think of Bitcoin as the original blueprint - altcoins are all the remixes. Some aim to be faster or cheaper, others are more programmable, and some are built to do entirely different jobs.
Over time, altcoins have split into different flavors. They can:
👉 Power blockchains or applications;
👉 Represent real-world or digital assets;
👉 Stay price-stable (like stablecoins);
👉 Solve very specific problems Bitcoin wasn't designed for.
Overall, altcoins are where experimentation happens in crypto.
Common examples you'll hear about: Ethereum (ETH), Solana (SOL), Cardano (ADA), Litecoin (LTC).

2/ Memecoins
Memecoins are a specific type of altcoin that start with a joke, meme, or internet moment and sometimes turn into multi-billion-dollar assets because… the internet.
They usually don't launch with cutting-edge tech. What they do have is:
👉 Strong online communities;
👉 Viral momentum;
👉 Prices driven mostly by attention and hype.
That makes memecoins wildly volatile. They can rip up fast, crash just as fast, and often ignore traditional fundamentals.
Basically, memecoins aren't about utility - they're about collective belief and vibes.
Classic examples: Dogecoin (DOGE), Shiba Inu (SHIB), Floki Inu (FLOKI).

Source: @naiivememe

3/ Wrapped coins
Blockchains don't naturally talk to each other very well. Wrapped coins exist to solve that problem.
A wrapped coin represents another crypto on a different blockchain, usually backed 1:1 by the original asset.
The idea is simple:
👉 Lock the original asset;
👉 Mint a wrapped version on another chain;
👉 Use it inside that new ecosystem.
This lets assets move across networks and be used in places they normally couldn't.
Wrapped coins aren't new value - they're bridges.
Popular examples: Wrapped Bitcoin (WBTC) (Bitcoin usable on Ethereum), Wrapped Ether (WETH) (ETH in a standardized token format for apps), renBTC (another wrapped version of Bitcoin).

4/ Hybrid tokens
Hybrid tokens are tokens that are deliberately designed to do more than one core job at the same time.
In many crypto projects, a token has one clear main role. Everything else is secondary.
Hybrid tokens are different. Their value comes from combining multiple essential functions into a single token - usually things like:
👉 Being used inside the platform;
👉 Governing how the protocol evolves;
👉 Securing the system or aligning incentives.
These roles are intentionally linked. Remove one, and the setup weakens or breaks.
Common examples: Uniswap (UNI), Aave (AAVE), Compound (COMP).

And why does any of this matter?
Because not every coin should be judged the same way.
You don't analyze a memecoin, a wrapped asset, a governance token, and a base-layer altcoin with the same expectations or risk lens.
Knowing what category a token belongs to helps you understand what gives it value - and what kind of rollercoaster you're signing up for.

Source: Binance News / #BitDegree / Coinmarketcap

"Place a trade with us via this post mentioned coin's & do support to reach maximum audience by follow, like, comment, share, repost, more such informative content ahead"

#altcoins #memecoins #wrappedcoins #hybridtokens