Saga Monetary Technologies has finally launched its SGA stablecoin, and it's already planning to break away from its pegged basket of currencies.
SGA, the basket-backed stablecoin envisioned last year by the Saga Foundation, is a long-term play tailoring to two very different goals of the crypto market: being a store of value and a free-floating asset all its own, according to Ido Sadeh Man, founder & chairman at the foundation.
SGA's seemingly contradicting ambitions give rise to a complex game plan.
At launch, SGA will be a stablecoin through-and-through.
Its value will rely solely on the "Basket of national currencies" whose collective worth backs up SGA's list price.
Meant to mimic the International Monetary Fund's Special Drawing Rights, a currency-like reserve asset pegged to the dollar, euro, renminbi, pound sterling and yen, this "Basket" will ensure SGA's stable price.
The SGA's website will report the funds held in its reserves through daily attestations.
Over time SGA will become entirely unpegged, he said, and the value of the outstanding tokens will depend on how many are being held.
"There will always be enough money in the reserve to allow the contract to purchase all SGA tokens, although the price of SGA is dependent on the quantity of SGA in circulation at the time," he said.
Man also said that SGA front-loaded its regulatory due-diligence.
Saga Stablecoin Goes Live Backed By Basket of Fiat Currencies
gepubliceerd op Dec 10, 2019
by Coindesk | gepubliceerd op Coinage
Coinage
Recent nieuws
Alles zien
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.