Gold-based monetary system Kinesis aims to provide price stability to the world of cryptocurrency and prevent the decrease of its value. The company says it has already attracted interest from the major players in the gold industry, which is estimated at $ 6.8 billion in the London gold market alone (70 percent of world trade volume).
After the gold standard that once defined the value of currencies was abandoned in the twentieth century, the monetary system became dependent on central bank policies. The Kinesis team decided to create their own “efficient, safe and fair monetary system” based on two of the world’s most stable products: gold and silver.
“There is [approximately] $ fifteen billion in gold listed annually, creating an exceptional but untapped potential for investment and exchange if gold can be remonetized.
Adding performance to this exchange multiplies this potential exponentially, ”says Thomas Coughlin, CEO of Kinesis.
Kinesis offers digital 1: 1 based coins in assigned physical gold (KAU coins) and silver (KAG coins). When users buy Kinesis coins, they actually buy real metal. Gold ownership is digitized with blockchain technology, which allows the user to maintain or transfer currencies from their Kinesis electronic wallet. The Kinesis debit card allows the owner to instantly convert KAU and KAG into fiat currency and spend on cryptocurrency worldwide. The company states that, unlike other cryptocurrencies, transactions through the Kinesis system will take only two or three seconds as a result of its custom branching of the Stellar network, which can support more than 3,000 transactions per second. Kinesis believes that the KAU and KAG coins could be used in daily purchases, such as buying a cup of coffee or even buying a car.
In addition to paying bills, the (KMS) can be used for managing international payments with lower transfer rates offered by banks and other international payment services.
Another option offered by the network is the possibility of exchanging shares in the Kinesis Blockchain Exchange.
Cryptocurrencies will be converted to physical gold or silver, since the system generates a 0.45 percent rate when transferred between the holders, accumulating in a group to be distributed to the users of the system in the form of performance.
Kinesis was founded by the Allocated Bullion Exchange (ABX), the first electronic and institutional bullion exchange for physical precious metals.
How a blockchain-based money technology company can take an exceptional start: intensive infrastructure and a completely operational exchange created for the trade and storage of physical bullion in seven locations around the world. The new, but experienced, a startup is able to “recover a truly decentralized, [digitized] asset, based on blockchain technology,” says Kinesis.
Kinesis is presently within the public sale part of its Initial Token offer (ITO) of its speed token (KVT), which can be the primary cryptocurrency offered by the startup team.
KVT is a utility token and is not backed by a physical asset but by a whole monetary system.
With KVT, investors can obtain a portion of the transaction fees generated by the system (maximum 20 percent). This income is distributed to holders of 300,000 KVT, and the company promises that there will be no future dilution.
According to Kinesis, there is a great demand for their first tokens. Kinesis says it raised more than $ 50 million just in its pre-sale period by selling more than 55,000 KVT.