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Finally a stable coin that’s actually stable: Daniel Popa on Anchor Coin

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Anchor stable coin

One of the fundamental problems with cryptocurrencies is not security or the lack of awareness but the fear of uncertainty. Cryptocurrencies have had a rough history sticking to stable growth.

It may be the case where bitcoin tainted the reputation of cryptocurrencies by being highly volatile.

But all of that chatter seems to be getting dusted under the rug with the advent of stablecoins. A stablecoins is known as a cryptocurrency that has a mechanism to keep it aligned to its value peg, which can range from stable to volatile. The mechanism is either backing/collateral, guaranteeing liquidity to holders, or algorithmic that keeps the stablecoin pegged by programatically regulating the supply of currency to keep the price aligned to the peg.

Anchor utilizes the seigniorage shares model, meaning that it is not collateralized by any other currency or commodity, and relies on algorithmic control of supply to keep it aligned to its value peg. In addition to this, Anchor has created a non-volatile peg, the Monetary Measurement Unit (MMU), which ensures that the volatility of the value peg, an issue with other stablecoins pegged to fiat, crypto, and commodities, does not destabilize the pegged currency. By contrast, crypto-collateralized stablecoins are subject to the same volatility as their crypto counterparts, and fiat-collateralized stablecoins will inevitably suffer the same inflation as their fiat counterparts. Stablecoins pegged to commodities and other assets are similarly difficult to predict and adjust for various market impacts.

What is Anchor Stablecoin?

Anchor is a stablecoin developed by the swiss company Anchor AG, which is unique in comparison with other stablecoins. Unlike most other stablecoins, Anchor is pegged to the sustainable and predictable growth trend of the global economy.

In the words of its founder, Daniel Popa, “Anchor is a stable platform for any crypto or traditional currency to peg its value to and to be a cornerstone for price stability as a global currency and financial standard. Anchor’s core mission is to be a driver of global economic stability.”

Putting things into perspective, consider Anchor as a global currency. Since 1960, the global GDP grew from $1.3 trillion to $80.7 trillion and is still growing. Based on this historical data, we know that global GDP has steadily grown at an average annual rate of 2.5% for the past 25 years, enabling Anchor to provide a single financial index that can be relied on, irrespective of inflation or other market impacts.




The Nuts and Bolts of how Anchor Stablecoin works

Daniel Popa interview

Anchor pegs its value to the growth of the global economy via the MMU. As Daniel Popa puts it, “The Anchor stablecoin is an algorithmic stablecoin with a two-token mechanism. We have created this platform that is pegged to the global growth of the economy via a non-flationary, financial index known as the Monetary Measurement Unit (MMU). The price of Anchor (ANCT) is determined by various algorithms that create this index, taking into account numerous macroeconomic indicators from more than 190 countries to create the most accurate measure of value that exists in the world today.”

Daniel explains that the Anchor team created the MMU by reviewing and understanding the factors impacting global GDP. He says, “So, we are looking at the GDP of 190 countries. Data that comes from valid, trusted sources like the IMF, World Bank, and Bloomberg. We have created this unit that actually gives us the growth of the global economy. We can go back 25 years using mathematical modeling, and see that the MMU stays consistent.




Why go back to 1994? Because before 1994 the Communist Bloc did not report to the IMF, World Bank, and so forth. Due to global geo-political shifts, countries in this region started reporting GDP in1994. So now, we can go back for the last 25 years and see that the global economy is growing, growing and growing.”

As an alternative to fiat-pegged stablecoins, Anchor is not subject to the inflation inevitably suffered by fiat counterparts like the US dollar, Euro, or Chinese yuan. By contrast, Anchor offers token users long-term price stability, preservation of purchasing power, and protection against inflation, while hedging market volatility.

On asked about how different they are compared to the other stablecoins, Popa says, “The difference in what we (Anchor) are doing and what other stablecoins are doing is that many peg themselves to crypto assets, fiat currencies, or commodities, none of which are in and of themselves stable value pegs. By contrast, Anchor is pegged to an index that maintains stability and predictability over the long run.  

We choose stability because we created this unit very similar to the index of the IMF, which they call the SDR (Special Drawing Rights), a unit of account for the IMF.”

As is the case, there happens to be a lot of buzz about cryptocurrencies, especially stablecoins on how they deem to survive recessions or hits as such.

When asked about how Anchor can survive such recessions, Daniel says that since Anchor is pegged to the growth of the global economy, not to the economy of individual countries, even in the case of a recession, Anchor will continue to appreciate in value over the long-term.

He adds that the impact of recessions such as the Financial Crisis of 2008 would be at a range of just 1% on the Anchor coin.

“Anchor’s two-token system allows for automatic adjustments for price changes by incentivizing token holders to take their coins out of the market or inject them into the market to address dips and rises in value above or below the MMU.”

When asked for an example of how Anchor can support individuals facing real-world situations, Popa says that if, for instance, a house is bought for $70k and the market crashes, it does not lose its value because, at the time of purchase, the value is pegged to the MMU of the Anchor coin. This MMU value is readjusted every day based on real-world data inputs.

Daniel explains this further: “So, in theory, we wouldn’t need to go sell the property to cover anything because the market should take care of the whole thing throughout the recession period, as we are looking at one number only and not what the market is doing. The system is looking at what the market is doing. We trust the Anchor system because data from the past 25 years demonstrates that our model would react positively to recessions and other market events, which is why we can promise value retention and appreciation over the long-term. 

We believe that the MMU we created is healthy enough mathematically to resist inflation and weather market crashes. Our system is further backed by several pillars that we are relying upon to stabilize and make sure there is liquidity always.”




Investments and the Future of Anchor coin

Anchor Coin logo

Anchor started in 2018 and thought of going for a casual ICO, but shifting regulations led the team to decide on a traditional equity raise instead. Anchor is currently preparing for its first fundraising round, offering equity in the company in exchange for financing that will be used for further development of the Anchor system and products powered by it.

Popa says that Anchor is now listed on two cryptocurrency exchanges, IDEX and Liquid Exchange. By planning on listing on new exchanges in 2020, he says that they are now ready with all the financial data to start conversations with investors.

On questioned about whether they are to approach any banking or financial companies for possible collaboration, Daniel says that “We are open to that idea, especially given that we will have twenty-one validator slots and so are looking for the financial institutions to fill some of those roles.” These validators will be a core component in Anchor’s governance model, responsible for overseeing the decentralized consensus over the value of the MMU, the token price, token volume, and other processes.




Wrapping it up:

With a revolutionary concept for a stable and predictable global financial index, Anchor is on a mission to establish the mainstream use of a cryptocurrency without the fear of loss of value through inflation, volatility, and other detrimental market events.




IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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Crypto Roundup: All Your YouTube Influencers in One Place

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Crypto Roundup

Visit our Crypto Roundup section daily for a dose of all your favorite Crypto YouTube influencers in one place.    

Worried about missing updates from your favorite YouTube crypto influencers?  

Welcome to the Crypto Roundup.  

On this page, we will post a quick summary of the videos from some of the most popular YouTube crypto influencers.

Ivan on Tech  Altcoin Daily

Crypto Zombie Box Mining

Ellio Trades Lark Davis

Data Dash Bitboy Crypto

MMCrypto Chico Crypto

Altcoin Daily

Video title: Bitcoin Will Be OVER $20,000 By Christmas 2020! BIGGEST WEALTH SHIFT OF OUR LIFETIME! Cryptocurrency

Date: 19-Nov-20

  • World’s biggest wealth shift of our lifetime is happening right now and no mainstream media is talking about it, except CNBC.

  • Preston Pysh predicted on August 26th that: “Bitcoin should be reaching its all time high by Christmas.”

  • If you are looking to buy a dip, there may not be one.
  • Ricardo Salinas Pliego, a mexican billionaire, has just revealed that 10% of his liquid assets are into bitcoin.

Lark Davis

Video Title: STOCKS HIT NEW HIGHS! WILL COVID VACCINES LEAD TO MEGA PUMP IN 2021? [Are You Ready?]

Date: 19-Nov-2020

  • Stock markets and bitcoin pumps higher on the news of the second successful covid vaccine.
  • There could be more chances for the new stimulus. Means more inflation, more debt and simultaneously pumps stocks, gold and bitcoin.

Crypto Zombie

Video Title: BITCOIN $18.5k TOP!!?! DON’T BE FOOLED!! HODL FOMO BEGINS!!! $TRILLIONS FLOOD!!

Date: 18-Nov-2020

  • Overall sentiment of Bitcoin has changed drastically from ICO craze in 2017 to a time where people are FOMOing to own more bitcoin.

Ivan on tech 

Video Title: BIG WARNING TO ALL HODLERS!!!!!!!!! DO NOT GET REKT!!! BITCOIN $18,500 REJECTED – NOW WHAT?

Date: 18-Nov-2020

  • Ivan expects bitcoin to shoot past $20K resistance before end of this year, giving it 85% probability

Chico Crypto

Video Title: World’s Most Powerful Turn BULLISH on BITCOIN

Date: 19-Nov-2020

  • All those who hold big bags of Bitcoin will come out of the shadows to talk up the Bitcoin rally, a $20K bitcoin could be on the cards before the end of this year
  • Ethereum mining could act as a big catalyst for Ethereum’s price
  • Big companies like google could play a bigger role in mass adoption of crypto

Let the FOMO begin…

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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Lessons from the Veteran HODLERS to the Newbies!

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Lessons in Crypto

For all those who entered the crypto market after the 2017 bull run – here are few lessons from the HODLERS from the last bull run(s).

This is our attempt at making all you newbies aware of the mistakes veteran cryptoers did.

Let’s get started…

Don’t FOMO in to all the hype

FomoIt’s hard not to FOMO in crypto.  The trick is to make sure you don’t lose your shirt in crazy bets.  Always limit your bets to what you are comfortable losing.

The common ways you can become victim of FOMO are:

  • Following your favorite YouTuber without actually doing your own research on the project.
  • Investing into projects at the top.
  • Believing in promises of 100x or 1000x without any substance behind those claims.

HODLing far too long

Remember why you are into crypto – to make the money.

Never fall in love with your crypto, and HODL the tokens even when they are 10x and more.

Have a strategy to take your capital out before you become a HODLer.  

If you believe the project really has what it takes to go beyond 100x and more, just sell in instalments so as to not miss the ride.

One of the best ways to HODL is to take your capital in full and profit in tranches.

This rekt story will give you a right perspective of what it looks like, it’s one of many:

Don’t put all your eggs in one basket

Never go all in on one project. No matter how strong the project may look, even the projects with strong fundamentals don’t do well sometimes. 

And, you will be kicking yourself watching other projects go up and your portfolio just doesn’t seem to make a move.

And don’t over do it and have a portfolio with over 100 projects either. It is very difficult not to have invested in more than 15 projects but anything less than 20 is a good way to go, in our opinion. 

Put aside the share of Profits for Taxes.

One way you can get a good night’s sleep is by paying taxes. 

Always keep a habit of putting aside a % of your profits in USDT or other stable coins, as a reserve to take advantage of market volatility and also to meet your tax obligations. 

Exchanges are more evil during bull run

Foreign ExchangesDon’t trust exchanges. Yes we already know that, but they play more games during bullrun, some intentional and some technical. 

Many exchanges tend to go under maintenance when the prices shoot up too high too soon (Coinbase?), and you can’t sell. 

And the shady exchanges scam out before you know.

Regulators seem interested when the market cap of these projects goes through the roof, which then adds FUD around the project crashing the prices.  

Exchange may freeze funds pending investigations when such issues arise.

Take for example OKEx. Users are unable to withdraw their assets from the exchange for almost a month now, not certain if they ever will, and all that started with the legal dispute.

Never fall for Arbitrage gains

Arbitrage is when you buy in one exchange at a lower rate and sell on the other for a higher rate to take some profits. 

Some shady exchanges show a lot higher prices than the other genuine exchanges and when you deposit your assets to sell at those prices there won’t be actual volume to execute the trade. You may be stuck with either a high fee for withdrawal or other funky rules to take your own money out. 

Remember, there is no free Giveaway

Free CryptoScammers rise with the rising market.  

When the crypto market buzzes with all time highs – scammers cash in big time on newbies.

The most lucrative scam in crypto is ‘Free Giveaway’. Whether it be through YouYube ads or discussion groups and wherever they can get your attention.  Read this article on various sophisticated scams that are being deployed.

We hope these lessons help you through your trades and crypto life.  Stay safe and always DYOR.

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

 

Continue Reading

CryptoSpace

Crypto Roundup: All Your YouTube Influencers in One Place

Published

on

crypto news

Visit our Crypto Roundup section daily for a dose of all your favorite Crypto YouTube influencers in one place.    

Worried about missing updates from your favorite YouTube crypto influencers?  

Welcome to the Crypto Roundup.  

On this page, we will post a quick summary of the videos from some of the most popular YouTube crypto influencers.

Ivan on Tech  Altcoin Daily

Crypto Zombie Box Mining

Ellio Trades Lark Davis

Data Dash Bitboy Crypto

MMCrypto Chico Crypto

Altcoin Daily

Video title: The United States Just Brought Bitcoin into the National Conversation!! | Cryptocurrency in 2021

Date: 16-Nov-20

  • Former National Treasurer and the new US Senator Elected, Cynthia Lummis, said Bitcoin fits the bill as a good store of value as it is finite and limited, unlike the inflationary fiat currency.

  • Grayscale adds over 7000 more bitcoin in just the last 24 hours.
  • Just over 16% ETH staked for ETH 2.0 launch on Dec 2 2020.
  • Bitcoin Cash hard fork takes place tomorrow.

Crypto Zombie

Video Title: WARNING!!! BITCOIN 2017 BEAR FRACTAL RETURNS!!! BTC WORST CASE SCENARIO…

Date: 14-Nov-2020

  • Institutional money starts flowing into bitcoin.

  • Paypal goes live with its crypto trading platform for eligible customers. They have also raised the buying limits from the initially set $10,000 to $20,000 per week.
  • DIA, an DeFI Oracle provider, integrates with Polkadot.

Ivan on tech 

Video Title: BITCOIN WILL DO SOMETHING INSANE THIS WEEK!!!! -30% DUMP AHEAD vs $20,000 PARTY – Programmer

Date: 16-Nov-2020

  • Bitcoin could make a big move this week, either hit 20K or we may see a 20% to 30% drop
  • Chainlink partners with Etherisc to deliver agricultural insurance in Kenya.

Ellio Trades

Video Title: UNLOCKING $100 TRILLION? This low cap gem seeks to bridge CeFi and DeFi

Date: 15-Nov-2020

  • DeFI could be similar to the ICO craze in 2017
  • Low cap gem: AllianceBlock
  • AllianceBlock is bridging the gap between DeFi and CeFi
  • AllianceBlock Partnership with Orion Protocol and Chainlink.

Chico Crypto

Video Title: WARNING! An “EVIL” Entity Wants Control of BITCOIN…

Date: 15-Nov-2020

https://www.youtube.com/watch?v=45Ac-5y2ofg

  • 90% of Bitcoin’s mining pools are controlled by China based mining pools
  • As the value of bitcoin goes up – there is a threat of push to ‘control’ the network from China
  • Binance is looking to push through the 50% mining share and Chico believes this could be dangerous

Visit our Crypto Roundup section daily for a dose of all your favorite Crypto YouTube influencers in one place. 

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

Continue Reading

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