Can the UniDollar (UNISD) Cash in on Proof of Liquidity? — Market Mad House
The UniDollar (UNISD) is a new cryptocurrency built on the simple concepts of Proof of Liquidity (POL).
Simply put, Proof of Liquidity; or Proof of Funds, means an instrument has measurable cash value. Therefore, you can convert a UniDollar into cash fast.
In contrast, it can be hard to convert many older cryptocurrencies into fiat currencies. Hence, it’s difficult to make purchases with those currencies.
UniDollar offers Proof of Liquidity
To elaborate, merchants hate being paid in something they cannot convert to cash. The UniDollar team hopes Proof of Liquidity can solve this problem by offering a cryptocurrency a merchant can convert into cash fast.
Additionally, they design the UniDollar to verify ownership of tokens fast through a Simple Staking Platform. Theoretically, the Simple Staking Platform can verify Proof of Stake (POS) via a Metamask or Trust Wallet account. However, the Simple Staking Platform cannot go live until August or September 2020.
The Simple Staking Platform verifies fast POS via autonomous staking. To elaborate, I think this means the platform automatically verifies proof of stake when it contacts a UniDollar. UniDollar hopes to encourage staking by rewarding each stake with 2% of the transaction in proportion to the amount of tokens staked.
A Hybrid Token, not a Stablecoin
Despite its name, UniDollar’s creators label their token a POL and POS hybrid token instead of a stablecoin or a cryptocurrency.
The UniDollar (UNISD) is not a stablecoin because it does not facilitate payment in fiat currencies such as the US Dollar. To elaborate, stablecoins such as Tether (USDT) contain a Smart Contract that can pay recipients in a fiat currency.
In contrast, the UniDollar relies on staking and proof of liquidity to verify liquidity and payment. The hope at UniDollar is that the staking platform will verify tokens and encourage their use.
The UniDollar itself is an Ethereum Request for Comment (ERC20) cryptocurrency that operates on the Ethereum blockchain. Each UniDollar contains a smart contract, or digital robot, that verifies POS and POL via the staking platform.
The hope is that people will trust the UniDollar because it offers verifiable liquidity.
UniDollar and Games
Interestingly, there is one decentralized app (dApp) that accepts the UniDollar.
That dApp is the Flip Game which went live in June 2020. A second game will go live in August or September when the simple staking platform comes online.
I think building a game is a smart way to test a new token because it encourages use of the token. In addition, the game lets developers see actual people could use the token. The developers can monitor how the token works by watching game players.
Additionally, UniSwap Version Two an app which allows you to swap Ethereum (ETH) for UniDollar (UNISD) isalso live. Importantly, CoinMarketCap listed Ethereum as the second most valuable cryptocurrency on 24 June 2020. In particular, CoinMarketCap gave Ethereum a Market Capitalization of $26.325 billion and a Coin Price of $236.13 on that day.
What Value Does the UniDollar Have?
Unfortunately, CoinMarketCap did not list a Market Capitalization for the UniDollar (UNISD) on 19 June 2020.
However, CoinMarketCap estimates the UniDollar had a 24-Hour Market Volume of $71,290.47 and a Coin Price of $0.000369 on 24 June 2020. The UniDollar team estimates the token had a 125 million fixed supply and over 270 token holders on 21June 2020.
Given those numbers, I think the UniDollar has some theoretical value but no speculative value. However, I consider the UniDollar (UNSID) a cryptocurrency speculators need to watch because they design its tokens with some disruptive capabilities.
We need to watch the UniDollar because it could show the way to add value to cryptocurrency without leveraging fiat currencies.
Originally published at https://marketmadhouse.com on June 24, 2020.