28.08.2020 published by Freecoins24
4 min read
Blockchain technology is inarguably one of the most significant technological innovations in the 21st century. The technology seems to provide gateways to every other problem facing various sectors and industries, including government operations. One of its notable contributions already widespread is the management of digital currency.
The establishment of cryptocurrency meant to provide the global market with a solution for the shortcomings of the traditional financial system, more so, the banking system. However, after a few years of use, cryptocurrency also had its fair share of setbacks. Stability was one of its significant drawbacks, and a new class of digital assets, the stablecoin was born to solve this problem.
How Stablecoins Work
Stablecoins are simply cryptocurrency that solve the price volatility problem by pegging to other cryptos, fiat currency, or physical assets. For every coin in circulation, there is an asset backing held in reserve. These reserves ensure that the digital asset’s price will not fall below the value of the asset backing it. However, backing stablecoins with other crypto assets still poses volatility problems, and so the coins are usually over collateralized in an attempt to tackle the shortcoming.
The strongest set of stablecoins is the tangible asset-backed coins, and gold backing is the current unique trend. These coins are not prone to inflationary effects faced by fiat currency-backed coins. Besides, owners can acquire tangible assets by redeeming their coin holdings. Apollo Fintech, a financial technology giant, introduces GSX, a gold-backed stable currency that is redefining the stablecoin market.
Gold Secured Currency (GSX)
Gold Secured Currency is a new gold-backed cryptocurrency developed on the Apollo Blockchain technology. The coin combines the advantages of a stablecoin with a shareholder’s benefits while enjoying Apollo Blockchain capabilities of security, transparency, and speed. The company became the first to implement database sharding and the first to use the technology. According to CEO, Steve McCullah, database sharding, enables it to be the most sustainable blockchain and most feature-rich and fastest cryptocurrency.
The new coin is changing the face of the stablecoin market by incorporating mechanisms that eliminate price volatility and ensure a perpetual increase in value.
GSX Extensive Backing
For more than 3000 years, the price of gold has been uniquely high, positioning it as a highly non-volatile asset for investors. Apollo Fintech owning over 3,000 acres of gold-rich land in Zimbabwe has an unmatched stretch of tangible assets to back their new coin. Furthermore, the company will use a quarter of its earnings from different Apollo projects to buy more gold and metal-rich land to support its currency. Consequently, the size of the assets backing their coin will always increase, which means the value of GSX will also be rising.
The vast gold mine has continuous gold mining projects, with the proceeds being used to back GSX. Apollo will be committing half of the annual profits from gold mining to the GSX coin backing reserve.
GSX Holders Annual Earnings
Gold mining is an undoubted trade where traders almost have the guarantee of high profits. Investors always examine projects before committing their assets and only engage in businesses that indicate the potential for returns. Investing in GSX will be an investment in gold. Holders of the coins will have the rights to Apollo Fintech’s GSX backing reserve. The rights include claims on the proceeds of the sale of such assets. Furthermore, GSX converts its holders to shareholders, who become entitled to annual earnings. Apollo Fintech will distribute 50% of profits from gold mines to shareholders in dividends.
Assets Transparency and Security
Among the issues facing the stablecoin market is the transparency and security of investors in long-term projects. For instance, a large stablecoin Tether was in 2017 used to manipulate the price of cryptocurrencies. GSX utilizes blockchain technology that is next to impossible to compromise. The technology provides unmatched security with the advanced Apollo Blockchain featuring adaptive forging and quantum resistance.
Apollo Fintech will also allow third-party auditing of its assets, and the reports made public. Investors will be confident about the project with such levels of transparency in project operations.
GSX’s Perpetual Growth
GSX will be the first stablecoin with continuous growth, which is its most unique and valuable feature. It will be an investment with guaranteed returns, unlike other coins whose guarantee is only on prices’ stability. Additionally, investors will not only depend on the growth in the value of GSX to make a profit as there is additional income from dividends and the sale of assets. Holders can redeem their coins and get fiat currency equivalent to the value of gold on their holdings.
Most stablecoins usually have the backing of one asset. The cryptocurrency-backed coins still face volatility risks, while fiat currency is prone to inflationary effects. Such characteristics make gold-backed coins safer, but GSX takes gold backing to a whole new level.
The coin has the backing of more than one asset, gold-rich land, and gold mines, and both share the characteristic of perpetual value addition. Besides, based on Apollo Fintech’s program, there are plans to open a gold refinery. The refinery will further expand the asset backing reserve, not forgetting the continuous increase in their gold-rich land stretch.
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