Cryptocurrency has come a long way since the launch of Bitcoin. Nowadays, while many may not understand the intricate mechanics of digital currency, they at least have heard of it. It has provided various benefits and conveniences that traditional fiat currencies lack.
There are many who understand that instability comes with innovation and are nonetheless enthusiastic about the industry’s potential to expand. However, there are just as many who wonder how they can invest in digital assets while still maintaining stability. The solution to this dilemma comes in the form of stable coins.
A stable coin is a unique type of cryptocurrency whose value is tied to a valuable asset, like precious metals (i.e. gold and silver), fiat money, or oil. Pretty much anything with tangible value. The formation of a stable cryptocurrency’s price is in direct proportion to the asset. They will never drop below the price of the underlying asset. However, they can surpass the spot price depending on the popularity and trade volume of the coin.
As mentioned, gold and silver are common precious metals for stable coins to be pegged to due to their popularity. However, two other metals tend to get overlooked in the frenzy: platinum and, the subject of this article, palladium. The primary stable coin that is pegged to this particular metal is the appropriately titled Palladium Coin.
What is it? How does it work?
Palladium Coin is a fractionalized asset that users can purchase with other cryptocurrencies or traditional cash. The cryptocurrency’s fractional nature means that one can purchase any amount at any time, thus providing an enormous advantage to any potential palladium investors. The metal’s high spot price per ounce basically means that a single gram of bullion could be too pricey for certain investors.
With Palladium Coin, buyers with any amount of money can digitally invest in the palladium-backed cryptocurrency before redeeming for physical bullion. Each coin receives backing from approximately 1/1000th of an ounce of up to 99.9% pure palladium. Bullion is put into storage inside a protected vault and undergoes frequent inspection, with its results published on the project’s main website. Users can buy any amount of Palladium Coin they want as the platform fits every budget. Moreover, there is no limit on the amount of Palladium Coin someone can purchase or sell.
Some people do not want to invest in a ton of money, and those particular individuals can purchase palladium in fractional amounts. It is important to note that this feature is not available with conventional purchases of this metal. Be that as it may, this is a perfect method of investing in the safe-haven asset, and it is ideal for the future of precious metal investments. The purchasing system is operated in an automated fashion, and investors can request physical palladium if they want. Something crucial to keep in mind that maintaining anonymity during this process is not possible.
Security & Identification
Palladium Coin’s foundation resides on the Ethereum blockchain, which is one of the most popular platforms tailor-made for project construction. Because this cryptocurrency is an ERC-20 stable coin, it can be put into storage on an array of secure crypto-wallets.
There is no requirement for identification when buying this palladium-backed crypto. All a user needs to do is supply an Ethereum wallet address so that they can obtain Palladium Coin. The team behind the project displays the smart contract address on Ethereum’s main net for the coin on the main site. With this, users can easily view the architecture of the smart contract on Etherscan. At the same time, it encourages project transparency.
Every palladium reserve is handled and protected with the utmost security measures. The system of redemption for physical bullion typically involves an identity authentication process. This will make sure that the account holder is the only one with access to the physical bullion within the vault.
What the future holds
Unlike other projects that fail due to a lack of a concise vision, the Palladium Coin team presents a straightforward vision that aims for substantial growth. Their main goal for this year is to add this cryptocurrency to a leading exchange of commodity-backed stable coins. Furthermore, they hope to offer holders the ability to buy the coin via an ATM network.
It remains to be seen if this vision plays out in the long run, but the team behind these stable coins is confident.
Krishna Murthy is the senior publisher at Finance XOD. He is not only the senior publisher but also the owner of Tricky Finance. Krishna Murthy was one of the brilliant students during his college days. He completed his education in MBA (Master of Business Administration), and he is currently managing the all workload for sharing the best banking information over the internet. The main purpose of starting Tricky Finance is to provide all the precious information related to businesses and the banks to his readers.