1
Existing tokens volatility is extreme.
Price drops of more than 10% in one hour do happen, even for the most established tokens such as Bitcoin and Ethereum. Less popular tokens experience even higher levels of price variability.
2
Digital tokens prices differ substantially in different markets, exchanges and geographies. This creates a risk of overpaying when purchasing a token, or obtaining too low a price at its disposal. It also creates additional volatility risk, as the effect of falling price in international markets is coupled with a disappearing price premium in a local market.
3
As nearly all the digital tokens exhibit extreme levels of price volatility, there’s a growing need for tokens that have some value anchoring or internal stabilizing mechanism embedded, in order to cater to new users, who do not accept current levels of risk associated with holding digital tokens.
