The cryptocurrency developers have created a digital coin that allows traders to bet on the coronavirus epidemic and make money based on the number of people who get sick or die.
Called “CoronaCoin”, its supply will decrease every two days depending on the rate of new cases – suggesting that its price may increase as the number of people killed by the virus increases.
The coronavirus epidemic is becoming global, with six new countries reporting their first cases on Friday and the World Health Organization has raised its global spread and its impact alert to “very high”.
The rapid spread of the virus, which appeared in China in December, has caused a frenzied sale in world markets, with the top three US stock indices on track for their worst week since the 2008 financial crisis.
The total supply for CoronaCoin is based on the world’s population, and the tokens will be burned once every 48 hours depending on the number of those who have been infected or died, according to its website.
“Some people think that a large part of the supply will be burnt due to the spread of the virus, so they are investing,” said Sunny Kemp, a user who has self-identified as one of the developers.
Kemp said that the team included seven developers and that others were joining us. He declined to identify others, but said they were mainly in Europe.
Cryptocurrencies like bitcoin are digital currencies that rely on advanced cryptography to validate their transactions. The emerging asset class has been plagued by frequent price cuts and scams.
Transactions are recorded via a digital register called blockchain. The CoronaCoin blockchain documents the spread of the virus and the token can be bought and sold on some online exchanges, such as Saturn Network, according to Kemp.
About 20% of the supply will be allocated each month to the Red Cross for a donation using a well-known cryptocurrency payment processor, said Kemp.
Some users of the Reddit social media platform have criticized the token.
“Frankly, it’s amoral,” said one.
“Tasteless,” said another.
“That’s why we can’t have nice things,” wrote a third.
Asked if the token could be considered morbid, Kemp said: “There are currently active pandemic bonds issued by WHO. How is it different? “