Another week in crypto, another sudden price crash. This time the blame goes to Tether and Bitfinex. The New York Attorney General alleges that Bitfinex had an $850 million shortfall (let that news on its own sink in for a moment!). To fill the gap, Bitfinex is said to have taken $700 million from Tether reserves.
That’s fraud any way you cut it, and it gives credence to suspicions regarding Tether’s supposed 1:1 Dollar reserves. Since its introduction to the market, Tether advertised itself as a cryptocurrency that would always be worth $1, because for every USDT coin there was $1 US held in reserve. Industry analysts have always been skeptical, believing that Tether instead had some kind of fractional reserve system in place. If this news is true, then it proves the point, and no one can predict the future of Tether.
If Tether loses in court, it could sink USDT prices to zero. We’re not saying this is sure to happen, but the smart money in crypto is seeking out other stablecoin alternatives. One of the most interesting we’ve found in the market within the past couple of years is KaratGold Coin (KBC). KBC has all of the earmarks of a classic cryptocurrency. It is instantly transferable to any recipient in the world. It’s secure and fraud-proof. However, KaratGold Coin has a set value relationship with CashGold, which are physical bills for which KaratGold Coins can be exchanged. The coin’s circulating supply is also linked to CashGold reserves. With CashGold Karatbars presents a gold-as-money approach, with tiny bars of gold built into physical bills (just like Dollars or Euros). ) As part of a global Karatbars International’s promotion campaign, the Gold Independence Days, KaratGold Coin holders will be able to swap their coins for real, physical CashGold notes from Karatbars International.
Though the system isn’t available just yet, there is a good reason to believe that KaratGold swapping will work just as advertised, because Karatbars has been trusted in the gold selling world for almost a decade.
The most interesting aspect of this is not the fact that the gold can be swapped, but that this system makes gold into an asset that can be spent online. Using the K-Merchant application, users can buy or sell KaratGold Coin with Ethereum, Bitcoin, or one of several fiat currencies. K-Merchant has been integrated into many different e-commerce systems, such as WooCommerce, meaning that users can already spent K-Merchant through thousands of online retailers. K-Merchant will be very useful on the IMpulse K1 Phone, a smartphone powered by the Ethereum blockchain and KBC.
In one fell swoop, this system makes it possible to buy gold without having to transport or store it; buy online goods and services with gold; trade gold for cryptocurrency and vice versa, and use gold as a fully modernized and tokenized asset.
KaratGold Coin is still very much under the radar in the crypto world., It has nonetheless held its value admirably in the time between now and its February 2018 ICO debut. We can’t say that KaratGold Coin will replace Tether, but it does seem fairly certain that KaratGold Coin will be an island of stability in the volatile sea of cryptocurrency prices, and one that brings the world’s oldest asset into the modern era.