When cryptocurrency entered the market some 14 years ago, many thought it was purely speculative, expecting its time under the limelight to be short-lived. However, as we have seen in the previous decade, crypto has revolutionized currencies and the concept of value exchange.
Nonetheless, concerns regarding volatility remain. Understandably, a portion of the public is weary of putting their money in cryptocurrencies that are entirely intangible and have no inherent value. This is the reason for the emergence of stablecoins and various digital currencies that are pegged to physical assets.
Now, a newcomer to the crypto space called Uniglo (GLO) hopes to bridge any remaining gaps by developing a multi-asset-backed treasury to support its native token.
Uniglo is a new decentralized finance (DeFi) project that will grow a treasury supported by a wide range of assets. Half of the transaction taxes in the platform will go into a treasury that will be used to purchase digital currencies and digitized real-world collectibles. As such, the Uniglo investment portfolio would be highly diversified, providing sustainable backing for its GLO token.
Many people consider cryptocurrencies to be worthless because they are completely intangible and have no connection to valuable things in the real world. But with Uniglo, people who are cautious of the risks in crypto are provided with a middle ground that could usher them into the DeFi space.
With a sound structure for underpinning the value of its currency, Uniglo could provide an example of how the value of non-pegged digital coins could be assessed.
A key question we must ask now is whether Bitcoin could back its currency in the same way as Uniglo. That could prove difficult, as Bitcoin was the very first token in the cryptocurrency world and has achieved much of its growth because of its speculative nature. Simply, it has grown to its current size because of its novelty, its focus on decentralization, and having no reliance on fiat, gold, precious metals, or other standards. Bitcoin has done well by pegging its value against its demand, usability, ubiquity, and technological value.
Similar to Bitcoin, Dogecoin is not supported by any kind of physical asset or cash flow. True to its name and the nature of its genesis, Dogecoin plays a game of popularity. Being a meme coin, it rises and falls based on how endearing it is in the eyes of its supporters. So far, Dogecoin’s community has been rabid, pushing the value of DOGE mainly because they want to and people are willing to pay for it. In the long run, however, Dogecoin might back its coin with assets in an effort to inject some sense of sustainability into the protocol.
Many cryptocurrencies are volatile because investors need to put in the work to create their value. Hence, stablecoins and digital assets pegged to physical assets have emerged to provide security and stability to the cryptocurrency market. With the rise of Uniglo, however, investors are further provided with a social currency that exists to work for them.
Find Out More Here:
Join Presale: https://presale.uniglo.io/register
Disclaimer: This is a sponsored press release, and is for informational purposes only. It does not reflect the views of Crypto Daily, nor is it intended to be used as legal, tax, investment, or financial advice