VILNIUS, Lithuania, May 7, 2021 (GLOBE NEWSWIRE) – The adoption of blockchain technology over the past decade has revolutionized many industrial sectors. From securing data to managing the supply chain, the blockchain app has redesigned efficiency levels and enabled participating companies to thrive and outperform their competitors.
Blockchain technology has also enabled businesses to circumvent municipal laws in order to raise capital from retail investors while underestimating the levels of risk associated with investing in these businesses and completely dissociating the consideration passed on to the business. investor of the company’s equity.
This was known as the utility token boom of 2017, where companies raised millions of ICOs, which had little or no substantial business activity or generated cash flow. The upside for them was that the utility tokens offered were viewed more as company products than securities, which meant that the cash flow generated was legally interpreted as income rather than capital. Why is this important, you ask? Well, this is important because as an investor you have much less statutory protection as a consumer than as an investor.
Since the boom and collapse of the ICO era, a new type of tokenized offer has appeared, the STO or Security Token Offer. Here, the respective companies and intermediaries attempted to create a hybrid structure between a utility token and the equity of the company, in which the buyer would be granted the same rights / protections under the law as a shareholder of the company, while benefiting from the advantages of a symbolized ecosystem.
The world was thrilled to welcome this new STO, as capital raising companies scrambled to create such digital stocks. Sadly, the market was too bullish and relied on the realization of this ecosystem in time for companies to execute their investors’ exit strategies. What was the problem, you ask? Well, it is very simple. There was no market for the security tokens to be traded due to a lack of legal compliance. In the absence of liquidity, there was no exit strategy for investors, and therefore no capital gain incentive for them to invest in security tokens … and so the hype died and security tokens have become a thing of the past, as other blockchain-oriented phenomena have appeared (i.e. the recent NFT boom).
The reason for the security token incompatibility with legal compliance was the inability of security tokens to act as fairness, due to the various functional characteristics of company actions, as well as the interaction. inherent with a municipal regulator via the issuance / governance of these shares. .
Now for the first time a new network is designed and built by eMoney Bank in collaboration with the world famous CBDC developers Superhow from Lithuania. This new network, the GCR network, is built on protocols at the central bank level, by the aforementioned development team, so as to be able to interact with the technical systems of local regulators, while retaining all the functionalities of actions of the society. The goal here is finally to have a blockchain network capable of supporting a regulatory compliant ecosystem, which allows companies to create their security tokens and provides a portal through which these tokens can be traded in a secondary market.
The GCR network is built in such a way as to allow continuous growth of the network, with stable tariffs and network speeds (regardless of the levels of network congestion). This is achieved by having a stable coin in the center of the network, which will not increase with use of the network, like Ethereum and other such networks. It appears that eMoney Bank has partnered with an international telecommunications company to stabilize network speeds through the use of global telecommunications supernodes.
The stable coin at the center of the system is known as Gold Coin Reserve (GCR), a multi-network digital asset, which has already received significant popularity in the market, already with an impressive average of $ 16 million in transactions. daily. Digital assets remain pegged to the spot gold price and would also be backed by gold reserves.
GCR holders are also rewarded for holding their assets in term deposits through staking benefits, where they receive continued growth from their participation in the company’s crypto-banking trading interface, the platform. form GCR Alliance – an offshoot of the company’s website (goldcoinreserve.io). The interface also allows users to stake USDT into term deposits, buy digital assets in euros and switch back to bank accounts, where their digital assets are converted back to euros.
The company boasts of the resilience of the new GCR network to external attacks and would soon announce a global hackathon event, encouraging hackers to hack its testnet network later this month, likely to test it before it launches next month.
Media contact –
Company – Reserve of gold coins
Web – https://trading.goldcoinreserve.io/en-us/#/convert
Last name – Samiran Mondal
E-mail- [email protected]