Stablecoin Says It Tackles Flaws of Rivals Pegged to Fiat Currencies

A stablecoin provider says it shields consumers against daily market volatility in cryptocurrencies — preserving their purchasing power, protecting them against inflation and delivering long-term price certainty.

Anchor says its two-token, algorithmic stablecoin is pegged to global economic growth. It is designed to offer an alternative to rival coins tied to the United States dollar and other fiat currencies, which can still suffer a weakened performance, and take a hit during recessions and market turbulence.

The peg used by Anchor is known as the Monetary Measurement Unit, which it describes as a “non-flationary financial index representing the real growth of the global economy.” The algorithm uses the latest macroeconomic data — including GDP from more than 190 countries, as well as forex indicators and premium sovereign bond yields from a “basket of 10 of the world’s strongest economies” — to create “a reliable financial standard and measure of value.”

While Anchor Tokens (ANCT) are primarily used for making payments, Dock Tokens (DOCT) are designed to ensure that ANCT remains stable and sufficiently pegged to the Monetary Measurement Unit — irrespective of external factors. The supply of ANCT is regulated by contraction and expansion mechanisms that see internal systems programmatically buy and sell tokens — as well as burn and mint coins — to achieve equilibrium.

ANCT listing unveiled

On Aug. 26, Anchor announced that ANCT had become available for trading after being listed on the Liquid exchange. ANCT was worth about $0.79 at the time of launch, with trading pairs for Bitcoin, Ethereum and XRP also available.

Daniel Popa, the CEO and founder of Anchor, says this marks the first time that an algorithmic stablecoin pegged to the global economy has become available for consumers to buy, trade and sell. He added that the company is committed to transparency and regulatory compliance — and delivering an easy on-ramp from fiat to crypto.

On Sept. 3, IDEX, a leading decentralized exchange for trading ERC-20 tokens, announced it will list Anchor (ANCT) by the middle of the month.

IDEX CEO Alex Wearn said: “As an exchange committed to providing traders with the best experience possible, we always aim to add high-quality projects. Anchor’s algorithmic stablecoin represents a unique approach to addressing the need for price-stable crypto assets. We’re thrilled to offer our traders the opportunity to trade the Anchor stablecoin via our platform.”

“Given the uncertainty plaguing the world’s fiat-driven economies, Anchor is providing an alternative to fiat-pegged stablecoins and offering crypto traders, businesses, organizations, and individuals long-term price stability, preservation of purchasing power, and protection against inflation while hedging against market volatility,” Anchor’s Popa adds.

According to Popa, the need for a truly stable cryptocurrency has never been so great. The worsening state of relations between the U.S. and China in an increasingly bitter trade war has prompted increasing numbers of consumers to turn to cryptocurrencies as traditional markets take a beating.

In its white paper, Anchor also points out an inherent flaw in pegging stablecoins to dollars, euros and pounds — citing research that suggests the U.S. dollar has lost more than 55% of its purchasing power over the past 25 years, with the euro losing 44% and sterling tumbling by 51%.

A new wallet

A beta version of the company’s eponymous Anchor Wallet was also recently launched. Described as a secure and stable store of value, it enables crypto to be transferred with ease to any Ethereum wallet address. The software also enables ANCT to be purchased with any fiat currency, as well as with BTC, ETH, USDT and USDC. The company says it is particularly keen to hear from crypto enthusiasts who are willing to offer feedback and enhance the user experience.

These milestones — in addition to other project developments in the pipeline — are set to be celebrated at a networking event and panel discussion co-hosted with crypto influencer and host of the Evolvement Podcast Michael Nye on the sidelines of Invest: Asia 2019 in Singapore on Sept. 12. Crypto traders, investors and exchanges — along with journalists and influencers — are being invited to attend.