- Tradomatics will facilitate the buying and selling of CARAT tokens
- Carats.io claims each CARAT token is backed by real diamonds held in inventory
- President of Carats.io, Eli Avidar says CARAT coin is designed to function as a more stablecoin as compared to other cryptos
Carats.io, the creators of CARAT token, a diamond-backed cryptocurrency, have announced that Tradomatics, an Israel-based Fintech firm is now the liquidity provider for its gem-backed virtual currency, CARAT token, reported Finance Magnates on September 30, 2018.
Carats.io Reach Agreement with Tradomatics
According to sources close to the matter, Carats.io has inked a deal with Tradomatics, a Tel Aviv-based financial services firm, to enable the latter function as the sole liquidity provider for CARAT tokens.
Per the team, Tradomatics will hold the gem-backed cryptoassets in inventory, set the price of CARAT tokens while also facilitating the buying and selling of the blockchain-powered CARAT tokens.
CARAT Tokens to Help Hodlers Beat Volatility of other Cryptos
At a time when stablecoins and real assets backed cryptocurrencies are gaining traction in the cryptospace, Carat.io is doing its best to ensure CARAT tokens remains as stable as possible.
As stated by Finance Magnates, in addition to underwriting CARAT token transactions, Tradomatics will also be responsible for maintaining the stability of the altcoin and make it easy for holders of more volatile digital assets like bitcoin and ethereum to trade them for CARAT tokens.
The Carat.io team claims its CARAT coin would be a very stable virtual currency, allowing users to circumvent the negative price movements of established cryptos entirely.
Carats.io President, Eli Avidar noted that the startup’s primary objective is to ensure the value of CARAT remains stable at all times and help in the transformation of diamond into a digital financial asset, revolutionizing the diamond ecosystem in the long run.
Launched via an initial coin offering (ICO), CARAT is an Ethereum ERC-20 token currently listed on Taiwan’s Hotbit cryptocurrency trading platform.
Tradomatics CEO, Shmuel Tal reiterated that Tradomatics would use its years of experience in liquidity creation business to help Carat.io achieve its aim of having a non-volatile cryptocurrency.
“As such it will serve as an excellent hedge against the risks to which diamond traders are regularly exposed to in the currency markets,” Tal concluded.
Despite the unstable nature of the price of precious stones, startups in the cryptoverse are increasingly turning to them in a bid to create own stablecoins.
As reported by Blockchain Reporter earlier in September 2018, Eidoo multi cryptocurrency wallet announced it’s looking to develop own gold-backed stablecoin called the ekon.