Eidoo to Unveil an Ekon ERC-20 Token as a Gold-Pegged Stablecoin
Eidoo To Unveil A Virtual Asset Tied To The Price Of Gold
A startup based in Switzerland, Eidoo, has become the latest virtual asset startup to set up a more stable digital currency by tying it to the price of gold. The token ekon, which is ECR-20 compatible, will sit together with its multicurrency wallet and decentralized exchange.
Investors will be in a position of redeeming the token for one gram of 99.9% gold. The same will be kept is Eidoo’s vaults, and will be subject to auditing every three months. Investors will be in a position of seeing the gold kept in the safe vaults, via a video camera. The firm will post a link on the website in such a way that members of the community will be able to control the gold.
According to Natale Ferrara, the founder of Eidoo, will be able to generate revenue through the fees charged when users purchase or sell ekon on the exchange. This will be in the form of EDO virtual asset. Ferrara also asserted that the fees will be assessed in case trader desires to trade their virtual assets for an authentic gram of gold.
Each Ekon token will be supported by 24 –karat gold. This basically implies that the firm will provide new virtual assets, subject to availability of gold. Additionally, a user must also have completed the KYC as well as all the legal requirements which are stipulated with the law in Switzerland.
Last year in October, Eidoo was able to raise over $27 million in a virtual asset sale. Since then, its app has become a very popular platform for unveiling ICOs. Since it is also expanding services to virtual asset users, Eidoo has additional exchange services. This is appropriate since it is an area that gold-backed stablecoin fits in.
The Push For Stablecoins
The declaration came at a time when there seems to be an explosion in stablecoin announcements. Recently, regulatory authorities in New York gave Gemini and Paxos/itBit approvals to operate.
It is worth noting that Tether (USDT) is still the market leader in stablecoins. However, the exchange recently announced that it will be moving on from the virtual asset, an indication that other competitors could start competing for a piece of the market.
In many ways, it is quite strange for a stablecoin to have a gold-backed virtual asset, this is fundamentally due to the fact that the price of the metal is also not steady. Since the spring, the price of gold has declined by about $150, though it has risen by $25 over the last four weeks.
According to Wang Chun Wei of the University of Queensland, gold is not a stable metal. It is for this reason that several exchanges use the US dollar as the reference currency. In a paper he recently released, Wei emphasized on the relationship that exists between stablecoin tether and bictoin. His views are that some people could be having virtual assets which may be having absolutely no correlation with the virtual asset market.
Windfall For Investors?
The absence of correlation is an aspect that a number of investors have talked about in the framework of virtual asset-based real estate investments. For instance, according to Scott Hoch, an official from the Apex Token Fund, crypto-native investors desire to have all their investments on the innovative blockchain. It is for this reason that they are likely to prefer a token instead of a gold exchanged-traded fund.
In this way, in case an individual is making use of Eidoo, and wants to have a view of their assets in a single location, then it might be helpful for them to have a virtual asset that does that for them.