Sanzooz Finance (SZFT): What is This, and Why?
Stablecoins are a little different from conventional crypto tokens. A stablecoin is a cryptocurrency that is linked to a reserve asset such as a fiat currency, a commodity, or another cryptocurrency. It’s a tokenized version of the asset that may be slipped into a blockchain ecosystem to help with seamless pass transactions, enhanced arbitrage, and value exchange.
In that way and many other ways, stablecoins form a perfect alternative for a usual crypto token.
Why Invest In Stablecoins?
Stablecoins are perfect for investors who are phased by the volatility of the crypto market but are still interested in testing the Fintech waters. They will not necessarily help you make bank on your investments but they are ideal for small immediate profits.
They can be used as a regular form of payment. Stablecoins, unlike typical crypto coins, are not subject to price changes or volatility because they are backed by national currencies. They also have the same benefits as the usual crypto coins, including blockchain security, transaction anonymity, fast transfers, and the lack of middlemen. They can be used to pay for things like groceries, bus tickets, and utility bills, among other things.
In addition, stablecoins are employed in centralised exchanges. The fact that fiat currencies take a long time to process, while their tokenized counterparts are standard blockchain entities that move quickly, makes them beneficial in this type of exchange.
Stablecoins To Watch Out For
A good proof of stablecoins being trustworthy is the fact that there are three stablecoins now among the top 10 most valuable cryptocurrencies by market capitalization. While Tether (USDT) and USD Coin (USDC) have long been in the top 10, Terra’s UST has risen to the top ten as the crypto economy’s market circumstances deteriorated.
To put this in perspective, Tether (USDT) has a market valuation of $83.2 billion, accounting for nearly 4.7% of the whole crypto economy. Moreover, the market capitalization of USDC is $48.6 billion, or about 2.5% of the $1.7 trillion crypto industry. TerraUSD (UST) is valued at roughly $18.61 billion, accounting for almost 1% of the total value of all 13,439 crypto assets.
These are the few stablecoins that can diversify your portfolio and increase its immunity to the constant fluctuations of the market.
Sanzooz Finance Token (SZFT)
Sanzooz Finance (SZFT) is a new token that is set to launch with several features under its wings. It aims to adopt a multi-DAO system that will have several DAOs within the organisation focusing on different operational areas.
However, the most attractive feature happens to be its Asset Pegging Mechanism. Asset pegs are essential for a system’s effective operation, as traders need both liquidity and stability between assets and other crypto-assets to profit from trading.
Since SZFT holders will have incurred debt through the creation of fictional assets, if the peg falls, they can profit by acquiring a USD below par and burning it to pay off their obligation, as the Sanzooz Finance system values 1 USD at the value of $1.
If you are planning on securing your crypto portfolio, stablecoins could be the way to achieve that!
To find out more about Sanzooz Finance Token (SZFT) visit Telegram, Twitter, Instagram, or the official Website. You can also read more about the presale by clicking here.
Read more: https://dailycoin.com/sanzooz-finance-szft-what-is-this-and-why/
Text source: DailyCoin.com
