STABILIZING DIGITAL TOKENS UNIVERSE
Cryptocurrencies and digital tokens are risky - their prices and relative values change dramatically and unpredictably. Price instability is preventing a wider adoption of this vital digital innovation, as potential new users are deterred by the volatility. It is difficult to use digital tokens for payments or other business purposes in such circumstances.
Existing tokens volatility is extreme.
Price drops of more than 10% or more 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.
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.
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.
The problem of existing cryptocurrencies price instability is addressed by the STABLE project from several angles. The goals of the project are:
To create a Stable token (“STB”). Its construction is aimed at delivering much lower (about 5-10 times lower) price volatility than the most established tokens.
To provide a social service of closing price differences between different digital tokens markets and geographies via custom made algorithms.
To provide a social service of outright stabilization of existing tokens’ prices by automatic buying into falling markets and selling into rising ones.
People behind the project have been involved in cryptocurrencies markets as early as June 2011, as investors in and proponents of this vital technology.
They have background in financial management, algorithmic trading, banking and asset management.
Initial Coin Offering (ICO)