With The Bear Market Over, Stablecoins Are Pushed Aside By The COINsistent Movement.May 13, 2019
Consensus welcomes the COINsistent movement
Crypto’s most important time of the year is here: Consensus is kicking off in New York City.
While we’ve been celebrating the return of a healthy market and juicy profits, those who preached stablecoins as the crypto market saviours have gone quiet. The general market’s sentiment and consensus, it seems, is that stablecoins only exist to help investors safeguard profits, which is particularly true for those backed by –audited or otherwise—fiat currencies.
In the middle of this climate, the event in New York will welcome a newly coined (pun not intended) term: COINsistent. Consensus will be the first event to celebrate the new crypto trend en masse… one that could change the outlook of the market from stablecoins into something better.
COINsistents: What are they, and where do they come from?
It is particularly true that, with the bear market drifting further apart from us, companies and individuals start making better, wiser creative decisions. Without the concern of substantial loses, crypto projects have outlined a new asset class: COINsistents.
COINsistents, among many other advantages, present themselves as a way for investors to secure value over time, instead of showcase it through volatility.
COINsistents are also tied together by following certain guidelines that make them desirable to users. These guidelines separate projects that intend to issue valuable tokens from those that aren’t, and are:
- Tokens must be backed by assets with a track of good performances over the years.
- The tokens’ backing must be recorded and audited.
- Consistency must be expected at all times, so projects with a tendency for fluctuating (either in price, executive decisions, vision, etc.) are ruled out.
- Liquid, and with real-world applications.
- Secure and with a culture of safely storing raised –if any—fund.
- Marketable and brandable, to ensure the success of the tokens’ use cases.
Studying COINsistents: DIAM
A project that in particular has embraced and adopted the COINsistent vision is DIAM, a crypto asset that’s backed by diamonds.
DIAM is backed by 150 million US dollars worth of diamonds stored in a vault, and is issued with audits from one of the main diamantaire trading authorities, IDEX. Diamonds, one of the best performing asset classes in the last decades, provide the project with a consistent reference to peg their token price at $1, while the project also offers full redeemability of tokens to diamonds, and vice-versa. This helps users effectively trade physical diamonds on the blockchain, eliminating intermediaries from the diamantaire chain.
DIAM, a project rapidly gaining notoriety for its promise of stability in price but consistent growth on asset value is a good example of the COINsistent model: A project that takes the best from several worlds, and unites it to offer real-world value to users to extend their financial reach.
For How Long Will COINsistents Be Around?
While it is true that no one can read the future in crypto, COINsistents seem to be aimed towards making the market stronger, and as such there’s no tendency that weakens them. If anything, current crypto users have learned how to separate worthwhile projects from useless ones and, despite of personal opinions, can all almost unanimously agree that the spirit of COINsistents is what the market needs.
We’ll need to stay tuned to see if DIAM and other COINsistent projects manage to succeed in this new, exciting market!