TiedCo has announced the launch of Tied Coin which is a price stable that is fully collateralized between Euro and Japanese Yen (JPY). This will be the first Japanese backed up by fiat.
BeaXchange.com, a platform are expected to work together with Tied Coin in a partnership having a mandate that enables Tied Coin to be the makers for the digital currencies that will be marketed on .
How does it work?
The need for a price stable coin has gradually risen in recent times. Though stable coins have existed for a while, investors are often pulled back due to the volatile nature of and the higher risk involved. Tied Coin works with the buying of on a digital platform to be purchased later on by fiat thereby increasing liquidity.
Two operational models of stablecoins exist
The first model is algorithmic, making use of algorithms to generate and market coins making the value of the coins artificial, same way central bank keeps the values of currencies at a certain price. The major problem with this model is the lack of back up which becomes an issue because this stablecoin though expected to be stable, can make the value of coin tumble and become worthless overnight due to market shift or algorithmic error. It is a problem because a stablecoin is supposed to have a stable value and not be so vulnerable to shifts in the market.
The second model for stablecoins is one with actual backups. The backups are stored by the companies issuing them and can be either in other fiat currencies or in properties with assured values.
Given the inherent backing of the coin, the stablecoin cannot tumble. This is because there is actual money behind it and stablecoins are issued. The operation is based on the interplay of demand and supply. This second category is where TiedCo is found.
Tied: A Fiat StableCoin
Tied Coin currently has two options: Tied2EUR and Tied2JPY.
Tied2EUR is a stablecoin backed up by reserves in Euros. For every T2EUR purchased, a Euro is deposited into a Tier-one financial institution. Tied2JPY, on the other hand, is backed up by reserves in Japanese Yen and for every , a Japanese Yen is deposited into a bank account in a Tier-one financial institution.
It’s basically like saving fiat for every stablecoin purchased and locking it in a vault far away from you yet safe. TiedCo provides a cross-platform functionality where The stablecoin can be exchanged for such as , , and . You can buy and sell T2EUR and T2JPY with a third party or using any on the platform of BeaXchange.com. Although a third party can be involved in transactions, there will always be an available option of making transactions directly with . This takes away any situation where a TiedCoin holder is looking for a buyer or seller to be involved in a transaction. Due to the partnership between both parties, no fee is charged for any transaction involving TiedCoins, in all, it’s a win-win situation for any investor looking to buy and sell the TiedCoins.
Any Other Reasons I should Use this?
The waiting period for many transactions when exchanging fiat to crypto can be a huge issue. However, the conversion of any with TiedCo happens instantly.
Also, considering the fees. A significant consideration for any investor who is taking part in the stock market and about to invest in are the fees involved. Just like bank charges and most exchanges incur fees on any transaction either in buying or selling can incur loss instead of profit.
There are no charges involved in TiedCo due to the partnership between TiedCo and BeaXchange, no fees are charged. In other words, you can buy or sell Bitcoins, or any major using T2EUR or T2JPY without any fear of loss due to charges incurred. The same as well with no charges incurred when buying Tiedcoins using .
Will stablecoins really work?
One of the major holdups of the cryptomarket for many, as already stated is its volatility. This volatility is not expected to end suddenly. Fiat-backed stablecoins give investors a relatively risk-free environment where they can leap in and out of the market at will.
Distinctively, the stablecoins market is growing and specialists predict they’ll help drive . While not all stablecoins might go in that direction. It is obvious at this point that they will be a huge part of the market because, among stablecoins, the fiat backed stablecoins are likely to succeed
Published at Sat, 04 May 2019 11:12:16 +0000
