XPA is one of the newer blockchain and cryptocurrency ecosystems with a clear mission. More specifically, the project focuses on bringing blockchain asset management to a whole new level, which is something a fair few projects are trying to achieve. Succeeding in this regard will not be easy, but XPA is certainly worth keeping an eye on.
The Concept of XPA
Bridging the gap between cryptocurrencies and real-world assets is not all that easy. It is evident there is plenty of potential when it comes to exploring these options, but building a solution people will actually use is a different matter altogether. XPA positions itself as an innovative blockchain asset management tool to offer decentralized transactions, asset collateral, and external capitals.
How Does it Work?
The current objective of XPA is to have crypto assets pegged to fiat currency to avoid the notorious volatility often found within the world of cryptocurrency. It has become evident that the volatility of cryptocurrency is a big problem, yet XPA aims to remove this barrier to entry. Their goal is to transform cryptocurrency into a practical, stable, and usable asset class for both payments and investments alike.
There is also the XPA exchange to take note of, as it will offer a safe and decentralized structure. That platform’s main focus will be on combining the concepts of financial models – mortgages, leverage, and future index contracts – with cryptocurrency assets. To most people, it sounds like these concepts will clash more often than not, and thus it will be interesting to see how XPA plans to tackle that aspect.
Ensuring that the XPA assets are pegged to fiat currency will also be challenging. The value of these assets is twice the value of XPA itself. These assets will always be exchangeable with fiat currency at a 1:1 rate. The team aims to reach a stable average price, while the real-time value will be subject to some fluctuation. Asset mortgage and liquidity can be provided at the request of users.
The XPA Token Explained
The main reason why XPA has its own currency is that they need to provide the best service to all network participants. The XPA token itself will be the gateway for future XPA assets, and it can be traded on XPA.Exchange. This exchange supports Ethereum and ERC20 tokens as of right now, although this list will grow as time progresses.
What Comes Next?
As one would expect, the XPA ecosystem is far from production-ready as of right now. The first token round has been completed, and a second batch of XPA tokens will be released in Q2 of this year. A third, fourth and fifth round are also planned. The aforementioned exchange platform is already live, although it only supports a limited number of tokens.