The NXT Asset Exchange allows anyone in the world to issue an asset of their choosing, which can either be backed by tangible value nor not. USDPlus is such an asset on the NXT Asset Exchange, which wants to establish parity with the value of the US Dollar. Additionally, holders of this USDPlus asset will be eligible for monthly interests. Quite a bold project, but there seems to be some fair asset distributions being paid out already.
Also read: Accumulating
It may sound rather strange to issue a crypto asset with the goal of keeping its value on par with the US Dollar value. In theory, this would mean every single one of these assets is worth 1 US Dollar, although there is no initial tangible value linked to
USDPlus. An unusual situation is created, but things will get even better.Similar to shareholders, every owner of one or more USDPlus assets will generate interest. Said interests will be distributed among all asset holders on a regular basis, and funds will be paid to the user’s NXT Asset Exchange account. This whole process is automated, although the interest payouts may differ in value.
Such a free market initiative creates an exciting opportunity for investors, as they can diversify their portfolio while remaining pegged to the US Dollar value. While the USDPlus asset will be quite volatile in price during the initial stages, long-term price stability us not unlikely. However, there will always be people speculating on these types of assets, and liquidity should not be an issue for the foreseeable future.
At the same time, the USDplus asset on the NXT Asset Exchange will bring additional US Dollar liquidity to the Bitcoin ecosystem. As a result, the Bitcoin price should see some upward pressure in the coming weeks and months. After all, a higher Bitcoin price is good for everyone in the ecosystem.
The high returns are achieved by lending USD into the Bitcoin futures markets, as well as the BTC swap/lending markets. These types of actions usually result in high returns in a shorter time frame, while providing liquidity to speculators at a lower fee. It will be interesting to see how this scenario will play over the coming months, but the initial response seems to be quite positive.
Speaking of high returns. USDPlus issued five dividend payments in its first week, with an average annualized rate of 35%. With over 2.3 Bitcoin in holdings, things are looking quite positive for the USDPlus asset. Interest parties can buy this asset on the NXT Asset Exchange under the ID 426058338514204629.
Source: News Tip via Email
If you liked this article follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin and altcoin price analysis and the latest cryptocurrency news.
Dogecoin's 2021 rally was a historic one, turning ordinary investors into overnight millionaires. This magnificent…
The crypto market is always evolving, with big names like Bitcoin and Ethereum leading the…
The crypto market is ablaze with excitement as altcoins like XRP and BNB make major…
Rollblock is quickly becoming the best crypto presale to buy, delivering unmatched value for its…
While Rollblock's continues its crypto presale, with its value increasing regularly, Polkadot (DOT) and Uniswap…
As the cryptocurrency market gears up for a bull run, IntelMarkets (INTL) is attracting significant…