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New Generation cryptocurrency, USDX Protocol, Offers Crypto Advantages and Fiat Pegging Stability

Nachrichtenquelle: PR Newswire (engl.)
13.03.2018, 04:47  |  695   |   |   

The New Era of Stablecoin, USDX Protocol, Offers Crypto Advantages and Fiat Pegging Stability

SINGAPORE, March 13, 2018 /PRNewswire/ -- New Money Labs Foundation is pleased to unveil the technology for the new era of Stablecoin, USDX Protocol, which will ultimately solve the extreme volatility in the crypto market.

Cryptocurrencies took the world by storm with their early advantages of fast and free settlement, along with their ability to store value with their limited supply and decentralized nature. However, the 68% plunge of Bitcoin value between December 2017 to February 2018, revealed the inherent weakness of traditional cryptocurrencies. Not only the ruinous boom-bust cycle stops the Bitcoin becoming the "fiat currency" in the crypto world, but its limitation is also preordained by its 4-7 transactions compared to Visa's 40,000 transactions.

Then comes the idea of Stablecoin aiming to solve the above problems. A Stablecoin refers to a crypto currency that pegs to a certain asset, and USDX Protocol is not the first to stabilize the currency. Before that, the USDT is a typical Stablecoin. USDT is the very first Stablecoin that Tether offers to peg to the dollar, which is anchored by Tether's promise of rigid payment to the market. Anyone can deposit USD in the account of Tether in exchange for the newly issued USDT, and anyone can also pay the USDT for the exchange of Tether to USD. The USDT monthly volume ranks third in all cryptocurrencies, after BTC and ETF, which fully demonstrates the market's demand for Stablecoin.

However, there is plenty of evidence that the USDT is not as safe and decentralized as it is claims to be.

From November 2017 to February 2018, with the market value of USDT rising from $450 million to $2.2 billion, the market is increasingly sceptical of USDT. In mid-2017, Tether officially announced that its bank account in Taiwan was frozen by the government; On January 30, 2018, Tether terminated the partnership with Friedman LLP, a long-term cooperative accounting firm. There is strong circumstantial evidence that Tether is making a lot of USDT out of thin air. The USDT is, arguably, a centralised exchange chip whose sole task is to enrich itself through market manipulation.

New Money Labs is building a new generation of Stablecoin a decentralized monetary policy protocol that offer low price volatility, low transaction fees and low transaction latency. We believe that USDX Protocol will solve the moral hazard and regulatory risk faced by USDT at one time.

'USDX Protocol Stablecoin will be the first of its kind for Stablecoins of the third generation to provide stable value through its technological superiority and flexibility in supply. USDX Protocol would be stable enough for widespread daily usage instead of being used as trading instruments such as shares. USDX Protocol would be a reliable store of value, medium of exchange and unit of account.' said Mr. Jim De Wilde, Advisor to New Money Labs.

When the stable exchange rate is greater than 1, decentralized monetary policy will increase the supply of money and bring the exchange rate back to 1. Conversely, when the stable exchange rate is less than 1, monetary policy will reduce the supply of money and make the exchange rate rise.

According to the USDX Protocol announced information, USDX Protocol will regulate the exchange rate through the following three mechanisms:

1. Variable Block Bonus: block bonus will increase the total amount of currency, lower exchange rates

2. Mining lock: mining lock will reduce the total amount of currency in circulation, improve the exchange rate

3. Variable transaction rate: Destroy the excessive currency and reduce the velocity of currency to increase exchange rate

USDX Protocol team includes not only followers of blockchain technology but also managers of economics professors, investment bankers and venture capital funds. Although USDX Protocol is not yet on the line, it is reasonable to think that this is by far the best stable currency solution. As USDT is discarded, USDX Protocol will only replace the USDT's role in the currency-cryptocurrency exchange and will reach $ 85 billion in transactions per month. More importantly, the mechanism of USDX Protocol itself can gain trust, and it will have eternal vitality with greater and more stable trading volume.

In addition to encrypting the market for money investments, the more important market is everyday use. USDX Protocol solves the price volatility and transaction speed problems, encrypted currency can go into the homes of ordinary people. It is conceivable that when cryptocurrency is fully ubiquitous: residents' main assets are made up of Token (akin to stocks), most of whom come from the companies in which they work, and Token appreciation is his main source of income. When residents need to take a taxi, buy coffee or have a beloved lady have dinner, he needs to pull out a stable cryptocurrency (like cash) to pay for the service. Information technology supports the first generation of Internet products, such as MSN, Yahoo, WordPress; financial payments detonated the development of second-generation Internet, such as Alibaba, Amazon, Uber, drops, the United States and so on.

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