Swiss Blockchain Startup Issued Stablecoin Tied To Gold
Eidoo, a Switzerland-based blockchain project, has joined the list of the companies who emit their own stablecoins pegged to gold, according to the information posted by the startup representatives on Twitter.
Token Ekon is issued on the Ethereum blockchain and compatible with ERC-20 standard. The stablecoin is available in the crypto wallet and on the company’s trading platform. The price of 1 Ekon is equated to one gram of fine gold. Every three months, the reserves of gold will be audited by experts, and the security vaults will be equipped with video surveillance devices, in accordance with Natale Ferrara, the Eidoo founder.
New tokens will be emitted for clients who follow the KYC procedure and adhere to Swiss laws. Ekon trading revenue in Eidoo will be converted into startup’s own token EDO, which according to CoinMarketCap as of 20 September, 04:19 (UTC), is positioned 179th with its total market cap valued at $23.6 million and priced at $0.8.
Some crypto experts express doubts as to viability of stablecoin issuance which is backed by gold. Fine gold price is subject to volatility which for the last six months has been corrected in the amount of $150, and only a slight increase was noticed form the end of August.
Relative to the USD, fine gold can fluctuate, henceforth the majority of exchanges and traders use the American dollar as the reference currency. It is more feasible to tie tokens to the USD, according to Wang Chun Wei from Australia’s University of Queensland.
As previously reported, platform Carbon announced its launch of CarbonUSD stablecoin on the Ethereum network.