Slowly, the global cryptocurrency market has begun to move away from the multi-asset model and becomes more centric. It revolves around a highly capitalized hub of internationally recognized and applied cryptocurrencies. After the failure of the utility token to be a store-of-value, coins and stablecoins have become the mainstay of capital and investment activity in the market. Bitcoin, Ethereum, and USDT Tether currently hold the hub position. The multiple altcoins act as spokes and revolve around mainstays that are affected by price changes and development.
Stablecoins are gaining popularity in recent years due to the numerous crises that have rocked the global economy. The stablecoin has emerged as an undisputed haven to store savings and accumulated value in an immutable manner on the blockchain, as fiat is losing its value as a store-of-value against the backdrop of rising geopolitical tensions and inflation.
The stablecoin market has become extremely overheated. The main problem is the presence of a single dominating stablecoin – Tether, which is a systematic risk for the entire industry. Tether accounts for 65% of the daily trading volume of all stable tokens. Its market capitalization is more than $155 billion. The world’s largest stablecoin is not very stable, as a Small Taiwanese bank that is fully controlled by Tether Ltd Caribbean Bank is used to store all of its US Dollar reserves. Tether is also facing legal problems. Tether has paid $18 million to settle NYAG’s cryptocurrency-cover-up allegations. The Tether bank was accused of having no connection to the distributed ledger and infrastructure, nor with its custodian. Because tokens are issued manually, it is dependent entirely on their reliability. Tether faces serious fraud risks due to this last factor. A misuse of administrators’ [art] could lead to additional coins being issued or burned.
Tether has a weak legal status, and there is no rigorous KYC/AML procedure. That creates risk for Tether and the custodian. Reserve funds could be blocked. Tether has not fulfilled its many promises of transparent audits. The public data suggest that 49% of the token’s backing is unspecified commercial papers.
These risks compromise and weaken the reliability of Tether, a stablecoin. They also pose significant risk to those who rely on Tether for savings or trading.
A stablecoin is a reliable, credibly-backed digital currency that can offer its owners transparency and integrity. Its value will be preserved based on the intrinsic qualities of blockchain technology. The AAD project is creating such a solution in the form of digital cash — stable and liquid as fiat money, boundless and immutable as cryptocurrency – the world’s first digital cash built right.
AAD intends to keep all its reserves with a Swiss bank that has Cryptographic Proof of Reserve backing. Because decentralization is a combination of real-world finance with decentralization, coins can’t be printed or burned without cryptographic approvals by AAD, repository Bank and AAD. AAD coins and all coins currently in circulation will continue to be held at 1:1 ratio of US Dollars in reserve account deposits.
Cryptographic Proof of Intent is the algorithm that issues or retires coins if the customer registers the intent on the public blockchain. Cryptographic restrictions prevent issuance of coins and their retirement from withdrawal without reserve.
Mandatory KYC/AML procedures can add security and legality. AAD stablecoinAll new clients must pass this test before they can purchase tokens or sell them. A Swiss legal system will oversee the development of the AAD infrastructure based on Ethereum and scale it to other DeFi platforms.
As the world’s first digital cash built right, AAD A strategic initiative will be launched to achieve listing on one of the world’s most well-known exchanges. This would allow the wider crypto community access. AADIt will become an enabler technology for payment systems and remittance payments solutions.
AAD is aiming to create a stablecoin that caters to the needs of all levels of the market, including arbitrage traders, exchanges and crypto-community members. It will solve all problems that plague the stablecoin market and quickly gain traction. AAD aims to be the most trusted stablecoin solution by combining technical expertise with partnership with a Swiss Bank and transparency based on impeccable Swiss regulation.
A tokenomic is the AAD project’s tokenomic model. It generates revenue by commissions on every transaction that uses the AAD token. Commissions are paid in AAD tokens and at 0.2% per transaction. The AAD project’s business development team will be fully focused on promoting the token as a means of payments in the e-commerce retail sector, while attracting active market traders who are currently largely exposed to Tether. AAD anticipates that there will be a $20 trillion market by the time its solution is available and integrated into the off-ramp systems for Visa and Mastercard.
AAD’s project team foresees a significant demand from arbitrage traders between exchanges. More retail customers will be attracted to AAD’s transparent, safe and convenient payment system.
AAD’s ultimate goal is to be a platform for exchange of payment systems. This will allow developers around the world to create payment solutions using AAD as its core.
Although there is a huge demand for stablecoins it has been proven that related projects are not in compliance with market regulations. This has led to ambiguous technical and credibility problems, as well as legal actions and investigations into the issue of coins being issued. The true stability coin must combine unique blockchain attributes such as immutability (no intermediaries), instant settlements and fiat stability while still maintaining the functionality for a store price and payment.
AAD Project has all of the elements necessary to make a truly stablecoin. This includes a legal framework that is recognized, an experienced team, Swiss bank partners and supervision. This combination of market conditions and existing factors gives the AAD project the ability to grow and scale quickly in a way that attracts investor participation and bootstrap users.
LINK:
Site: https://aadollar.ch/
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Telegram channel: https://t.me/aad_official
Telegram community: https://t.me/aadtoken_channel