AlloyCoin - Asset Backed Cryptocurrency With A Safety Net Quick LinksWhat Is AlloyCoin And Why Does It Matter?You may be wondering what AlloyCoin is and why it matters. Here’s why in one word… Volatility.
AlloyCoin is designed to solve the problem of price volatility. No one doubts that for something that’s supposed to function as a
currency, crypto
currencies are way
too volatile. Current cryptocurrencies are better at being subjected to units of value than they are at being them. Sounds like there’s an easy solution, right? Just make their value constant - like Tether. Unfortunately, it’s not that simple and Tether has been having...
some problems. See, while price volatility is a problem when used in pricing goods and services, speculators and day traders make money from that volatility. And the cryptocurrency industry practically runs on speculation. So there are two sides to the issue of cryptocurrency volatility: the speculative side where cryptocurrencies are an investment and the pragmatic side where coins have utility as a unit of value…
How can you eliminate volatility without eliminating the prospect for gains? Congrats! You just identified why we need AlloyCoin and we couldn't have said it better ourselves.
Afterall, if the price is perfectly constant, what incentive do investors have in buying it?
AlloyCoin is a cryptocurrency with a
price floor - it's like a built in insurance policy. AlloyCoin works alongside its own pool of assets called Alloy Reserve. Initially, these assets are an index of the top cryptocurrencies, but the long term plan is for these assets to include traditional assets like: gold, stocks and bonds.
By creating an index of other cryptocurrencies, we can effectively alloy the market's performance so that AlloyCoin's price-floor becomes their weighted average. That
mixture of assets is where
AlloyCoin gets its name.
"Don't put all your eggs in one basket..."
Can it still fail?Sure, but it would require the simultaneous failure of every asset held by Alloy Reserve. In other words, before it fails, the entire industry would have to collapse. Once Alloy Reserve introduces conventional assets like stocks and bonds, that scenario should become less likely.
Ultimately, the goal of Alloy Reserve is to try and establish a
minimum value for AlloyCoin called a
buyback price. If the market value drops below the buyback price, any AlloyCoin holder can sell their coin back to Alloy Reserve and they’ll...well..
buyback your coin at that price.
AlloyCoin seeks to solve volatility because its buyback price is determined by the growth of Alloy Reserve’s assets and the market price is determined by speculators. In a way, you could say AlloyCoin is valuable by design, not only by demand.
When the assets Alloy Reserve owns grow beyond what is needed to maintain the buyback price, that growth is paid out to nearly all AlloyCoin wallets. Meaning, you can earn AlloyCoin just by owning AlloyCoin. I say nearly all because you have to have some minimum balance.
The result is a coin that's price stable, but allows for gains in the form of dividends.
A currency doesn't need to sacrifice stability for the sake of growth.
Sound too good to be true? Well, It’s backed by a published team of researchers, scientists and developers and they’ve realized that the problem of volatility is actually just one huge math problem. They’ve outlined their solution in their white paper on
https://alloycoin.com. Their next step is to make Alloy Reserve artificially intelligent. Imagine that, a cryptocurrency that’s smart enough to manage its own growth.
With the stability AlloyCoin could provide, it would be useful for things like: insurance, retirement plans, health savings accounts, venture capital etc. Long term, the team believes the technology can even allow for the trading of traditional assets like stocks and bonds.
It's time to introduce some accountability to the industry and AlloyCoin seeks to do that by trying to protect your average user from losses in a volatile market. Sign up for the newsletter and if earning free AlloyCoins is sounds good to you, join AlloyCoin’s bounty campaign and earn AlloyCoins for every subscriber you refer!
Reasons Why The Industry Needs Something Like AlloyCoin:
