Grandshores Technology Group Plans to Raise $12.7 Million for Yen-backed Cryptocurrency Project
Grandshores Technology Group have announced plans via South China Morning Post to raise $12.7 million through a digital token fund. The fund will see the development of a Yen-backed stablecoin cryptocurrency project. Grandshores plans to raise funds denominated in US-dollar backed Tether are currently the most popular stablecoin. The Yen-backed cryptocurrency is to be listed on exchanges to allow traders to sell Bitcoin for a less volatile asset.
Japan is one of the most active investors buying and selling Bitcoin. They show the second largest trading volumes to any country and are at the forefront of innovation for the technology. A Yen-backed stablecoin much like Tether could increase the ease of trading and entry for users as well as hedge against the volatility. A trader could sell Bitcoin for the Yen-back stablecoin during such times.
It is reported that the Hangzhou Grandshores fund partners are working with a mid-tier Japanese bank to create the stablecoin with hopes of launching by the end of this year or early 2019. Future developments will see the exploration of a Hong Kong-backed and Australian-backed stablecoins. If these projects proceed they will be added to exchanges as an alternative to trading against Tether.
As more institutions enter the market we are seeing a greater need for cryptocurrencies designed for trading. Bitcoin is currently the popular choice for trading, but the volatility of the price has led to the development of stablecoins. A trader could sell crypto for a stablecoin to store value. The stablecoin will have the value of the asset that backs it whilst all the benefits a cryptocurrency brings.
There are currently many stablecoins that have been introduced with many that have failed due to mechanics. USD is the popular currency to peg with Tether, NUSD and TrueUSD already releasing coins whilst Gemini, Basis and Circle are still in development. These coins will help traders and users buy and sell cryptocurrency more efficiently at less risk.
We are sure to see more stablecoins enter the market as a demand for them increases. There are projects looking to develop cryptocurrencies backed not only by currency but physical assets such as gold and precious metals. These coins will stay stable but will be subject to change dependant on the price of the underlying assets.
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