Can Acrana (ACR) reduce the importance of the US dollar? – Measure Stablecoins like USD Coin (USDC) and Tether (USDT)

Can Acrana (ACR) reduce the importance of the US dollar? – Measure Stablecoins like USD Coin (USDC) and Tether (USDT)


by Analytics Insight


March 30, 2022

Stablecoins are cryptocurrencies designed to be pegged to fiat money.

Tether (USDT)

Tether (USDT), 3rd the largest cryptocurrency in the world, according to CoinMarketCap, is also the largest stablecoin in the crypto space.

Launched in 2014, the price of Tether is exactly $1 because it maintains $1 in its reserves for every Tether issued.

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Arcana (ACR)

The instability of traditional financial markets drove Acrana (ACR) on its mission to create a global virtual currency backed by cryptocurrency, rather than the US dollar.

If the USD depreciates because it is supporting a specific token, that token will depreciate at the same rate and this is a situation that Acrana tries to avoid as they aim to help the global community who believe that cryptocurrency and DeFi are the future.

Instead of having the US dollar as protection for the ACR token, Acrana has created the Acrana Treasury which holds a diversified portfolio of cryptocurrency assets should users wish to deposit or sell their digital assets to the Treasury in exchange for ACR tokens .

Rather than leasing its liquidity, Acrana owns it in what is a separate move by a cryptocurrency project.

USD coin (USDC)

Where the positives for the inclusion of stablecoins in the crypto industry include its fight against cryptocurrency volatility, there are several limitations to stablecoins.

USD coin

Fiat-backed stablecoins like Tether and the USD Coin digital stablecoin are restricted by US dollar regulations that compromise conversion efficiency.

As mentioned earlier, the depreciation of the US dollar leads to the depreciation of the crypto asset because the values ​​of these stablecoins depend on their underlying assets.

Stablecoin

While stablecoins show no signs of slowing down, Acrana is a project dedicated to the cause of removing them from the equation.

In a bid to re-enter crypto markets without relying on the US dollar, Acrana’s whitepaper states that “Acrana believes ACR will act as a strong digital currency that will retain its purchase value in the face of market turbulence.” .

Although the cryptocurrency has yet to be launched, Acrana (ACR)’s focus is significant and has garnered curious glances ahead of its future appearance in the cryptocurrency market.

While Acrana follows proof-of-stake protocols where users deposit money into a digital wallet and earn an incentive for doing so, its bonding process produces rewards and secures liquidity.

Acrana will buy stablecoins such as Tether or BUSD in exchange for discounted ACR tokens to complete the bonding process.

Positives of proof-of-stake (PoS) protocols include the fact that staking is a much greener method for the environment than crypto mining, while holders can earn interest on their crypto investments.

Crypto mining is infamous for its level of energy consumption as well as the amount of hardware required to mine crypto, as well as the high cost of the equipment required.

Click here for more information:

https://presale.acrana.io/

https://acrana.io/

https://t.me/ACRANAOFFICIAL

https://twitter.com/acrana_io

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