Minexcoin: A Low Volatility Stablecoin Platform
Cryptocurrencies are an incredibly volatile asset class, where price fluctuations of upwards to 20 to 30 percent are considered the daily norm. Given that merchants are becoming more open to the idea of accepting crypto as payment, many are looking for solutions to account for volatility in payment.
One project that is looking to tackle this problem is Minexcoin, a global payment system built on low-volatility crypto-assets that are regulated by an autonomous algorithm with methods proven in traditional financial markets. Minexcoin is a low-volatility cryptocurrency with a predictable price development where the long-term value of the coin is based on its annual growth of 33.6 percent. In order to reduce its volatility, supply/demand regulation tools, such as market interventions and coin parking are used.
Interested in Minexcoin? Here’s a quick rundown of the project:
Platform & Development
According to the Minexcoin whitepaper, there are two major factors that make the cryptocurrency unique:
- Low volatility of the coin (within a five-percent range) achieved autonomously with
traditional financial tools
- Predictable and controllable annual growth of the coin’s price which correlates with
average annual price growth calculated for a portfolio of most popular altcoins (around
The key to Minexcoin’s stable price action is an autonomous intelligent algorithm called MinexBank, which uses “Parking,” a tool that works similar to proof-of-stake mining, allowing users to store their coins for a select time period. This can range from one day to a full year, which rewards up to 70 percent interest.
The other major tool that Minexcoin leverages to assure stable pricing is ‘intervention,’ a where MinexBank buys or sells Minexcoin to keep the exchange rate within the predetermined range. To achieve this, there was a premine of 1,500,000 coins that will be replenished through proof-of-work mining.
The Minexcoin team plans on expanding their ecosystem by incorporating applications such as Minex Market, Minex Exchange, and Minex Platform. Recently, the Minexcoin team announced a successful Atomic Swap between the Miexcoin and bitcoin chains. This is a first step towards developing a fully decentralized exchange system, but it is important to note that there are a number of technical barriers they are yet to overcome.
The Minexcoin team consists of 11 developers and a number of support specialists. The team is supported by Kiev National Polytech Institute.
Minexcoin (MNX) currently has a market cap of ~$110 million with a circulating supply of 3,478,725 MNX and a total supply of 19,000,000 MNX.
Minexcoin is hoping to address the issue of volatility in cryptocurrency payments through the creation a stablecoin. While the idea is sound and the “parking” rewards are very lucrative, there will need to be significant adoption and further use cases to create extended value. We are especially interested in Minexcoin’s focus on Atomic Swaps to create a decentralized exchange platform.
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Disclaimer: The author(s) of this article may have a position in one or more of the securities mentioned above. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.