The 2 main challenges crypto investors are facing today

As the Blockchain industry expands, more and more investors around the World are getting interested and becoming aware of the advantages of converting some of their savings into crypto-assets. These new technologies open vast perspectives to revolutionize financial systems, payments, savings…

However, potential crypto investors face 2 main problems:

Problem 1: High volatility

The crypto market is very volatile. Because it’s still a small market and there is a high correlation between the price of the major cryptocurrencies (BTC, ETH, XRP…) So even the smallest movement can have a huge effect on the price, specially taking into account that wealth distribution in cryptocurrencies is very disproportionate. Investors have very few means to protect the value of their portfolio while staying in the crypto space.

Problem 2: Value not backed by anything

Today, very few cryptocurrencies are backed, liquid and stable. A token that is pegged will have a lower volatility and can even be used as a “safe haven” for value when the market faces a volatility crisis. Sounds good, but very few cryptocurrencies offer this right now.

How stablecoins are fighting back

Fiat-backed stablecoins are less vulnerable to these 2 problems because they use a hedge with no market risk. You can read all about it in this article written by Helie d’Hautefort, Globcoin CEO.

GLOBCOIN is bringing stablecoins to the next level by launching a series of customized currency baskets that will be tokenized for a variety of uses.

Solution 1: Protection against volatility

Globcoin’s first currency basket will be called GLX, a ERC20 token on the Ethereum Blockchain, consisting of fiat currencies of the 15 largest world economies and Gold. This basket has been traded for private clients for five years now, and it has proven a high stability. For example: In 2017 the volatility of the British Pound against the US dollar was 8% and against the GLX was only 4%.

Solution 2: A coin backed by national currencies

Each GLX token will represent the 15 currencies of the basket and Gold (After obtaining all authorizations from Swiss and foreign regulators). That means the tokens will have value because they represent a claim on another asset held at the bank. A prime auditing firm having direct access to the company’s bank accounts will provide a proof of reserves.

The vision? A global, accessible, low cost cryptocurrency providing a safe haven for crypto holders and diversification to fiat holders.

Token sale: www.globcoin.io

*Written by: Eva Contreras — Globcoin CMO