- Ford, Cobalt, IBM, LG & RCS Introduce a Blockchain Initiative for the Mineral Mining Industry
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- Outside Audit Confirms Circle’s Stablecoin USDC Is Fully Backed by USD as of the End of 2018
- Research: Cryptocurrencies Are Extremely Volatile and Unpredictable, Excess of Altcoins Will Drag Down Bitcoin
- Former US Congressman: Washington Regulators Thwart Crypto Innovation
Yes, we know, we know… terminology can drive a person crazy! And yet, it is kind of essential in order to communicate properly within a system, especially an intricate one like we have here at AllStocks. But don’t be alarmed! It’s all quite simple, we promise.
What Are AllStocks Tokens (AST-NET)?
AST-NET is the official cryptocurrency of our company that is issued during the ICO and until further notice only during the ICO. AST-NET is just like any other crypto-token, such as EOS (EOS) or TRON (TRX), and share the same qualities. The total amount of AST-NET supply is 50,000,000, out of which 25,000,000 is sold to the public in the ICO. Acquiring AST-NET during the ICO constitutes as an investment in our project.
Here how all AST-NET are distributed:
The value of AST-NET is initially attached to the Ether (ETH) price during the ICO, and thereafter it will be determined by supply and demand. AST-NET will be traded within the AllStocks platform alongside all other crypto-tokens and as well as within other exchanges due to the AST-NET’s ERC-20 compliance.
Again, please remember that AST-NET is issued only once, during the ICO.
What Are Backed Tokens?
Backed tokens are effectually what the name implies: They are automatically being created by the AllStocks platform when a trader buys a real financial asset that the backed tokens represent. The value of backed tokens is fully dependent upon the real asset’s value, determined by supply and demand forces. As long as a trader will keep the backed token, the real financial asset will be held in a transparent escrow account.
For example, if a trader buys with the AllStocks platform 5 Facebook (FB) shares that each one is worth $170, then the trader will receive 5 backed tokens that each one is worth $170. If the Facebook share price will drop to $165, then each backed token will be now worth $165 accordingly and simultaneously; similarly, if the Facebook share price will rise to $175, then each backed token will now be worth $175 accordingly and simultaneously.
Whenever the trader decides to liquefy the backed token within the AllStocks platform, then the backed token is automatically “burned” concurrently with the sale and he/she will receive the equivalent real asset’s value. There will be no situation in which a backed token will remain if the token’s holder decides to liquefy it.
What Are the Purposes of Backed Tokens?
Some of you may ask why would you need the backed tokens instead of the real assets, to which there are several logical and compelling answers:
– Backed tokens are ERC-20 compliant, which means that they will work in any place within the Ethereum system – a huge advantage to crypto-trading;
– Backed tokens are subject to Blockchain technology, which means trust in the system and full transparency – again, a big benefit to ensure safety and security;
– Trading backed tokens rather than the real financial assets means significantly reduced fees and commissions;
– Backed tokens enables decentralized global trading from anywhere on the globe in any market.
So… to summarize:
AST-NET embodies an investment in AllStocks, is issued solely during the ICO, and after which its value is determined by supply and demand.
Backed tokens are created each time by the platform whenever a real financial asset is acquired by a trader to which the prices of the backed tokens are attached.
You see? It really is all quite simple!