A NEW blockchain-based monetary system, Kinesis Velocity Token (KVT Coin), is claiming an advantage over existing cryptocurrencies such as Bitcoin (BTC) on the grounds that its tokens are gold and silver bullion-backed.
Veritably, fiat currencies have never abided a long continuance. As a matter of fact, every conventional currency since its Roman inception has suffered devaluation collapse. As a result, this has significantly impacted negatively on the respective economy of these currencies. Similarly, present-day conventional currencies are as well poor store of value.
However, cryptocurrencies are no exception. Very high volatility deems cryptocurrencies a non-viable store of value and non-viable for utilization as currencies. The KVT Coin is a digital currency particularly modeled to vanquish such flaws. They say they are achieving this via the development of a globally accepted, blockchain-based (decentralized), asset-backed monetary system.
Cryptocurrency Pain Points
Most noteworthy, the existing cryptocurrencies suffer acute price volatility. As a result, there are limitations to their utility as a currency. Furthermore, low transaction speeds and lofty, inflexible transaction fees restrict their day-to-day use.
Improved Performance and Reduced Costs
On July 21st, 2018, following an interview with Thomas Coughlin, the founder of the Kinesis System, the Smartereum Daily News reported that the high speed of transactions, percentage-based fee structure, physical asset cohesion, and earnings associated with the KAU and the KAG tokens are imperative for users to replace extant digital currencies with the KVT Coin.
KVT – Store of Value
“Additionally, it’s important to understand that much of the infrastructure for Kinesis, particularly the gold and silver minting, and physical vaults are in existence and have been operating under ABX, our sister company, for years. We are leaders in the precious metals space and have a fully operational metals exchange. This was built internally by our highly skilled development team. We have extensive partnerships in the space, a solid quality assurance framework and liquidity. Our whitepaper isn’t just a ‘pipe dream’, it is an evolutionary step, one that we are well on the way to fulfilling,” Coughlin said.
Preceding the ICO launch, Kinesis is offering KVTs, which are investment tokens to build the initial financial backing for the system.
“These are on sale now via Kinesis. Those who buy them receive an ongoing portion of the transaction income from the Kinesis monetary system. As such, they are an investment instrument, rather like shares,” said Maguire.
Maguire said the KAU and the KAG tokens would probably launch around February next year. He further said,
“They are based 1:1 on physical gold and silver bullion, and will be subject to fluctuations in the underlying price of bullion. Both will, at a minimum, be bid in line with spot London bullion, since Kinesis does not charge storage fees. One could argue that the increase in demand for real physical gold and silver will suck liquidity out of the price-setting synthetic paper markets and provide a stronger, less volatile environment for gold and silver.”
Consequently, to bolster the system’s security, the organization says they utilize highly secure third party vaults globally to store the gold and silver bullion-backed Kinesis (KVT). The bullion, which the company says has a full insurance cover, will, as a result, be subject to semi-annual audits.
SARIKAYA, Salih. “CEO of Kinesis System Thomas Coughlin: Kinesis Velocity Token (KVT) and Kinesis Will Yield To Precious Metals [Exclusive Interview].” smartereum.com. Smartereum, 21 Jul. 2018. Web. 6 Sep. 2018. Retrieved from:
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