Crypto Price Stability could Improve with New Gold-Based Finance System
Gold-Based Monetary System May Promote Crypto Price Stability
Kinesis, a gold-based monetary system, is looking to promote price stability in the crypto industry and to prevent its decrease in value. The company has attracted interest from those in the gold industry, which is estimated to be worth trillions of dollars.
Kinesis has a “efficient, secure, and fair monetary system” that is based on two of the most stable commodities in the world – gold and silver. According to Thomas Coughin, the company’s CEO:
There is [approximately] $15 trillion in gold traded every year, creating exceptional but untapped potential for investment and exchange if gold can be remonetized. Adding a yield to this exchange multiplies this potential exponentially.
The platform is offering a digital currency based 1:1 on allocated physical gold (KAU coins) and silver (KAG coins). Those who purchase Kinesis currencies are purchasing real metal. Ownership of gold will be digitalized with blockchain technology and this allows users to hold or transfer the currency from their Kinesis e-Wallet. The Kinesis debit card makes it possible for owners to make instant conversions of KAU and KAG into fiat and to spend currency worldwide.
The platform further adds that, dissimilar from other crypto, transactions through its system takes two to three seconds due to the bespoke fork of the Stellar network, able to withstand over 3,000 transactions per second.
Kinesis also believes that KAU and KAG currencies can be used for day-to-day purchases. In addition to paying the bills, the platform’s system can be used to manage internal payments with lower transfer rates by banks and other international payment services.
Allocated Bullion Exchange founded Kinesis, which is currently in the throes of its public sale phase of its initial token offering. The token is called Velocity Token (KVT) and it will be the first cryptocurrency made available by the platform’s team. KVT is a utility token not backed by a physical asset, but an entire monetary system.
Investors will be able to receive a share of transaction fees generated by the systems and the income will be distributed to holders of 300,000 KVT.