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Bit Trade partners with blockchain company to launch an Australian dollar-backed stablecoin

Shahrain KM

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Bit Trade partners with blockchain company to launch an Australian dollar-backed stablecoin
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On 21st September, Bit Trade, an Australian cryptocurrency exchange platform announced its partnership with Emparta, a blockchain company that provides infrastructure for employment. Through this collaboration, Bit Trade and Emparta aim to build and launch the first Australian dollar-backed stablecoin.

Stablecoins are digital currencies that are pegged to a stable asset such as gold or fiat currencies like the US Dollar. Tether [USDT] is another cryptocurrency that is a stablecoin which is pegged to the US dollar. Jonathon Miller, the Managing Director of Bit Trade on the Bit Trade website stated:

“In essence, stablecoins bring the benefits of blockchain technology like transparency, security, and immutability without losing the assurances of trust and stability offered by fiat currencies.”

The introduction of stablecoins allows investors to invest in digital currencies without the fear of losing steady returns due to the volatility of the cryptocurrency market. This is because stablecoins are pegged to the classic fiat currencies, so investors don’t have to be fearful of volatility. Stablecoins also improve transaction speeds.

The official blog stated:

“We believe that stablecoins will boost trust, accelerate wide-spread adoption, and could function as the backbone of blockchain-based financial applications, especially here in Australia given the favourable regulatory environment.”

 

Ballsacul, a Redditor stated:

“As long as the devs/crooks that ran ‘Aus Coin’ aren’t involved, it should be okay, lol.”

JakubH, another Reddit user said:

 “I wouldn’t touch it. Thank God I moved my AUD to EUR couple of years ago. Unfortunately, Australia is currently nothing more than China’s bitch. If the Chinese economy slows down the Aussie one will crash and burn.”

Bit Trade is a blockchain asset investment and portfolio management platform that caters to Australian users to especially buy and sell Bitcoin and Ether.

Emparta, founded in 2018, is a platform that provides infrastructure for trustless smart contract employment in cryptocurrency. The organization aims to tackle the issue of employment essentially making it easier for employers and job seekers to network and access seamless payment solutions.





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Shahrain KM is a writer at AMB Crypto. Her curiosity in Blockchain technology and Cryptocurrencies has led her to be a part of the news reporting team of AMB Crypto. She does not hold value in any cryptocurrencies currently.

Altcoins

Ampleforth could help create next-gen synthetic commodities for portfolio diversification, claims Blockfyre report

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Ampleforth could help create next gen synthetic commodities for diversification of portfolios claims new Blockfyre report
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Ampleforth was the first token to successfully complete an IEO on Bitfinex. This IEO caught the attention of a lot of users in the cryptospace, as the $5 million hard cap was sold out within the first 11 seconds. A new report by Blockfyre details how Ampleforth could pave the way for a new asset class for portfolio diversification in the future.

The report also highlighted a feature of Ampleforth that allows a flexible supply that adjusts to the market demand, while price simultaneously finds equilibrium. The token also aims to tackle the strong correlation that most cryptocurrencies share with Bitcoin.

Synthetic Commodity

Ampleforth project has the ability to create synthetic commodities that are disconnected when it comes to price fluctuations due to correlations, which is a common problem faced by both cryptocurrencies and traditional asset classes. Although Bitcoin was created to tackle problems that fiat currency inherently has, it still has some correlation issues.

In a world where traditional assets are widely affected by macroeconomic and global political scenarios, Ampleforth aims to create a new asset class, Synthetic Commodity, to tackle this problem.

The report stated,

“BTC as a synthetic commodity doesn’t show correlation to traditional markets such as stock stocks and bonds. Thus it reflects a potential good investment for portfolio diversification, in order to tackle macro-economic recession”

Although BTC is an uncorrelated asset, other cryptocurrencies are widely correlated to it. Ampleforth’s protocol introduces synthetic assets that “will always find a price-supply equilibrium by adjusting the price due to demand.” The report added,

“It needs to be emphasized, that these price-supply information will always be distributed amongst all token holders, so the supply of all token holders will decrease / increase. As a result, the overall cut of the total supply for each person will always remains the same.”

The report further said that if successful, Ampleforth will directly compete with Bitcoin’s $145 billion market cap and also against traditional asset market-based in fiat.





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