The new trend of the current season is stable coins. TUSD, USDT, DIA, BitUSD, Digix and even ROCKZ tend to become reserve currencies.
The current market situation suggests that investing in “stable” currencies is a great idea. But is this really the case?
The fact of the emergence of a large number of stable currencies indicates that the market is developing and growing. Each stable currency instantly gets a listing on the exchanges, and the number of funds that support projects causes envy. Perhaps an inexperienced crypto enthusiast will have an opinion that the more stable currencies in the market, the better for market. However, I believe that the increase in the number of stable coins will not affect the market situation in any way. Quite the contrary. Will make it less manageable.
And it all depends on a number of factors:
- Security. In theory, TUSD, USDT DAI are backed by the dollar, Digix by the gold, and RockZ by the Swiss franc. In theory, having $1, you can buy 1 TUSD and then change it to 1 DAI and exchange it for $1 again. But this is only in theory. In practice, back works only to fix the exchange rate;
- Audit track record. Currently, any of the companies can issue a large number of new tokens and announce that each of them is backed with real funds. But, as practice, listed companies do not provide audit track reports. Therefore, the issue of real provision of tokens remains open;
- Protection in case of bankruptcy. Not many investors asked this question. But the history of WEX should have become a precedent to ensure that investors of companies that began “to print” money, demanded guarantees of protection against bankruptcy and mandatory audit;
- Exchangeable. The given example with the conversion of $1 into any of the stable currencies and back to $1 was supposed to show the main vulnerability of stable currencies. They are not exchangeable. For example, in order to complete a transaction of 10 USDT you will have to pay 25 USDT as a transaction fee. And it is rarely possible to pay for the purchase of another stable currency without using third-party services and without additional fees.;
- Currency infrastructure. Like 10 years ago, cryptocurrency remains a means of P2P payments. In 2017, more than 50 projects announced the payment system creation based on their own token. However, no project has ever reached the declared results. But the lack of payment and service infrastructure is the task that should have been resolved in the first place.
It is believed that the crypto economy is a closed ecosystem that exists in a vacuum. There are cryptocurrencies, there is a blockchain, there are exchanges and there is an incredibly complex process of connecting the fiat world with the world of cryptocurrencies.
Among the 50 projects that create the payment infrastructure was one – BEEQB, which during the ICO, attracted a modest amount of money. Most investors thought it was a crash. But, even with limited funds, the project did not “nip”, but evolved. In 2018, the project managed to launch its own stock exchange, a cryptocurrency wallet, obtain a Money Transmitted II license and announce another round of investment attraction. What is attractive about their idea and why should we pay attention to them?
BEEQB offers a new vision for the development of a cryptocurrency market through the creation of low-volatility currencies with a predicted value. This currency (BEE) is developed as part of a global payment solution that combines a Banking license, a license to work with Fiat (Money Transmitted II) funds, a payment processor, an exchange and a wallet.
The main idea of the project is that such a bundle will allow solving the basic need of the crypto-market – the possibility of transferring payments to various third-party addressees. When paying for third parties, it is necessary to take into account that this payment comes from the sale of cryptocurrency. This need can not be satisfied by any European or American banks. When withdrawing funds from the sites, the funds must pass through the client’s current account and form a taxable base. In fact, a bank is needed that can service the calculations for the token and the “site” on which this token will be located – and make payments at the client’s order at various addresses (without using a current account).
The most successful solution is to create a token issued by the bank itself, with the possibility of a round-the-clock quotation and a platform at which it will circulate, including in European and American markets. In this case, the client can pay invoices with any available currency or personal tokens if they are listed on the local exchange and have sufficient liquidity.
The BEEQB team claims that the currency they create has real prospects to become a means of payment for cross-border payments between real and crypto-economics. At the same time, BEE is not a stable coin, it is backed by all the assets of the bank that the company plans to acquire, and it has growth potential. The company’s founder, Sergey Glukhota, insists that BEE is a low-risk financial instrument and it is more attractive for private clients, businesses, traders and investors than stable currencies.
In the current round, the company is trying to raise $33.5M by offering 20% of the company. Visiting the Investment Offer page you can see that this is not an ICO, so there is no countdown timer, there are no bright buttons with an offer to buy “right now”. But there is a large, detailed description of the investment process, roadmap, advantages, a comparative table with other currencies. The fact that the company has already come a long way is captivating, and the main goal of the new investment round is to buy a bank, develop infrastructure and global marketing.
I want to focus separately on the investment roadmap. The first item, also called soft cap, is $ 300,000. The company promises to invest the money in the development of the exchange. It is claimed that the ROI of the round will not exceed 6 months. An interesting and unusual approach.
After reading the Investment Algorithm should pay attention to an elaborate strategy to attract investment. It makes sense to become one of the first investors, especially since the company guarantees a full return of the invested funds at the request of the investor.
I would like to add that BEEQB is affecting, indeed, an important problem and their solution seems to be very effective. The appearance on the market of this payment instrument, which works in both fiat and cryptocurrency fields will lead to a significant increase in the popularity of cryptocurrencies.
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