In this article we take a look at TiedCoin – a stablecoin fully collateralized by Euro and Yen coming from Japan with the promise of instant liquidity.
The need for Cryptocurrencies emerged after the financial crash in 2008, it was obvious that the world needed a new way to manage its money. The answer was a system that facilitates the peer-to-peer transfer of funds, separate from any traditional centralized authority.
Traditional cryptocurrency, being a decentralized asset, determines its value based on supply and demand. If there is more demand than supply, the currency increases in price. If there is more supply than demand, the currency decreases in price. This is a driving factor behind price volatility.
If you haven’t heard about Stablecoin yet, then you’ve come to the right place. Its cryptos answer to the naysayers. A coin that pledges to uphold a 1:1 parity. Stablecoins come in many variations, however, we will be focusing on fiat-collateralized coins.
Fiat-collateralized: Pegging a Stablecoin to a fiat currency, like $USD – the worth being defined by dollars equivalent to cryptocurrency purchased stored in a Bank.
For example: If you have 10 coins from ‘ExampleCoin’ then that company will put ten dollars into a Bank to back your investment.
The essence of crypto is to move away from the centralized banking system our world runs on. However, a goal as lofty as that is not attainable if this new system of digital currency does not offer a safe and accessible transfer of fiat-based funds. Thankfully, with fiat-collateralized coins, you get just that!
TiedCoins – Front Runners of Stablecoin
A product of TiedCo – a Stablecoin that is fully collateralized by Euro (EUR) and Yen (JPY). The release of this coin marks Japan’s entry into the Stablecoin market, representing itself as the world’s first Yen denominated cryptocurrency.
Volatility vs Stability
As we all know, popular cryptocurrencies such as Bitcoin (BTC), are volatile. Their market value is prone to extreme fluctuations. It’s not unheard of to see changes in the 10-15 percentile region in one day. This is one big reason why crypto is seen as a non-viable option to replace the existing banking system. It cannot be used for simple things such as e-commerce – Business owners trading solely in crypto would need to change their prices every hour, making their practices inefficient.
TiedCoin is a usable fiat-collateralized cryptocurrency. Currently offered as T2EUR and T2JPY. These variations are backed by Euro (€) and Japanese Yen (¥) respectively. This means that every T2EUR/T2JPY token purchased is a Euro or Yen stored in a Tier-One International Bank. You can trade with confidence! Knowing the worth of your coins as being 1:1, Tied is stable and will always reflect the correct value of the fiat you have invested. You will not have to think twice about the selling/buying online, as fluctuating prices do not apply with Tied.
TiedCo offers a system that makes you feel like you have your cash in hand! Enter/exit the crypto market at will, no longer will you have to wait on typical transfer times that could last days, if not, weeks. The convenience offered here is a unique factor that is, frankly, priceless.
Security vs Insecurity
TiedCoin is exchanged on beaXchange their agreement provides the main company, TiedCo, to stand as a market maker of TiedCoin – providing them with the ability to buy back all their issued coins at near face value. This facility enables greater liquidity for the coin holder, allowing them to convert their coins into fiat in a simple and transparent manner at any time! Guaranteeing to back up your investment with reserves in Euro and Yen tier-one banks – so when you sell, it’s a simple removal of funds that are available to move at any movement.
TiedCo also pledges themselves to a 100% buyback clause against all their issued Stablecoins, which adds further security to coin holders, in case if there is ever a reason to sell and there isn’t anyone buying. This unique feature makes TiedCoin the first Stablecoin from Japan that comes with the promise of instant liquidity.
Traditional cryptocurrencies do not offer the same security as TiedCoin. If your BTC, valued $10,000, falls to $8,000 and the value never rises again, that’s $2,000 you will never see again! There is no protection for your investment, making the case, why use these insecure coins if you are not in the gambling game?
Maintaining Decentralization
Bank transfers come with fees, even when you are transferring your own money from one place to another. However, should we really be paying fees to transfer our own money? No! TiedCo offers a system in which you can directly manage your money – Tied Wallet. This wallet allows you to manage your money, without any oversight, on the decentralized Stellar blockchain. You will need to pay a token transaction fee when you transfer from an external Tied Wallet – this is to discourage network abuse.
Jitender Jagga is a cryptocurrency and blockchain enthusiast that carries interest in writing on different areas of technology.