Eidoo, a Swiss-based digital assets firm, which is the creator of the Eidoo multi-cryptocurrency wallet tagged ‘blockchain asset experience’, has announced on September 19, 2018, its intention to develop its gold-backed stablecoin called the ekon.
Eidoo Stablecoin Push
According to the Eidoo team, each ekon token will be equivalent to 1 gram of 99.9 fine gold which the startup claims will be saved in its highly secure vaults and audited once every three months.
The founder of Eidoo digital assets platform, Natale Ferrara claims that the entire process will be hundred percent transparent, as video cameras will be planted in all its vaults and a link will be posted on its website which will enable ekon token holders to view and control the entire gold in the vault.
“Each ekon cryptoasset will be backed by 24-karat gold,”
Ferrara noted, adding that the Eidoo team will issue new ekon tokens only when it has been fully ascertained that the yellow metal is available and the interested ekon token investor has completed his or her know-your-customer (KYC) procedures, as well as other legal requirements of the Swiss cryptocurrency and financial ecosystem.
At a time when hundreds of blockchain projects have kicked the bucket, it’s worthy of note that Eidoo is one of the very few cryptocurrency projects that have remained solid even with the turbulence in the cryptospace.
In October 2017, the firm generated $27.9 million from the sale of its native EDO altcoin during its initial coin offering (ICO).
In November 2017, Eidoo launched its ICO engine to make it easier for organizers of the controversial crypto-based fundraisers to create and manage their token generation events.
Can a Gold-backed Cryptocurrency Be a Stablecoin?
Just like the Initial coin offerings (ICOs) boom of 2017, when the price of bitcoin was on its way to the moon, quite many crypto startups have launched own stablecoin this year.
However, Eidoo’s decision to back its ekon stablecoin with gold remains quite surprising, considering the fact that the yellow metal itself is hardly stable.
While having a digital currency backed by real gold may seem an interesting investment move to most hodlers, it appears Eidoo is just attaching the stablecoin buzzword to its new offering to gain the attention of investors.
As previously reported by Blockchain Reporter, on September 11, Gemini, the crypto exchange of the Winklevoss twins, launched its US dollar-backed stablecoin called Gemini Dollar (GUSD), a better option than the controversial Tether stablecoin.