The crypto market is flooded with new projects every day. Most of the projects have their native tokens with a specific use case. The process usually follows a marketing tactic called airdrop to lure users by rewarding them with free tokens based upon certain criteria.
Unfortunately, most of the airdrops are baseless and have zero to little relevance. Amid the noise came Poundtoken, the first stablecoin from UK. Is it an alternative to Tether (USDT) or is it just a marketing gimmick? Let’s address all your questions & put some light on GBPT.
1. Token: Poundtoken (GBPT)
2. Creator: Blackfridge
3. Peg: GBP
4. Auditor: KPMG
5. Website: Poundtoken.io
What is Poundtoken (GBPT)?
Poundtoken is the first British regulated stablecoin. It works similar to the existing stablecoins, the only difference is the peg. While most of the famous stablecoins like USDC or BUSD are pegged against the dollar (USD), Poundtoken on the other hand is pegged against British pound (GBP) in a 1:1 ratio.
1 GBP = 1 GBPT
Why the peg?
A peg ensures the stability of a cryptocurrency. By nature, fiat currencies like USD, GBP or EUR are stable and less volatile. Stablecoins guarantees the coin’s stability in rough market conditions.
Who created Poundtoken?
Poundtoken was launched on 11th July 2022 by Blackfridge SC Ltd. Blackfridge is a Fintech company based in Isle of Man. The company is legally registered with the Isle of Man Financial Services Authority which is backed by competent British financial regulators.
Poundtoken is a legal stablecoin regulated by lawmakers of Isle of Man
Is it 100% GBP backed?
By design, GBPT is 100% backed by GBP. There’s no amalgamation with other crypto or fiat currency. GBPT holder is entitled to an equivalent value of GBP which means GBPT is backed by GBP stored in a bank.
To give you a glimpse, if anyone holding GBPT tokens in his wallet, the same amount of GBP will be held by the bank account maintaining the ledger of all GBPT transactions. Upon selling GBPT in the market, the same value of GBP will also be burnt. Maintaining 1:1 peg
Why do we need GBPT Stablecoin?
GBPT works similar to other stablecoins. It has the following benefits –
- Low volatility
- Risk hedging
- Easy liquidation
- Protection against high volatility
Stablecoins aren’t volatile and can be easily liquidated to fiat. Moreover, it protects the portfolio from volatile markets. If a user wants to minimise his exposure to turbulent market conditions without converting crypto to fiat, Stablecoin is the answer.
Checkout the list of best stablecoins of the year.
Is Poundtoken Audited?
Yes, Poundtoken has assigned KPMG to be its official auditor. As per the information received, every month KPMG will issue an attestation of GBPT’s cash reserve in the bank. This is done to bring transparency into the system and assure investors of a smooth & legal operation.
Did you know: USDT has been charged & paid $41 million for lying about its cash reserve
How to buy Poundtoken (GBPT)?
At the time of writing, GBPT can be purchased from Gate.io, UniSwap DEX & Bittrex exchange. The token will be live on other chains & exchanges by the end of this year.
This completes my review of Poundtoken GBPT. In the next post, I will talk about Algorand Partnerships. If you’re a fan of blockchain technology then do share this post on your social handles and educate everyone around you. Remember to subscribe to my YouTube channel for more informative content, released every week.
Cryptocurrency is a highly volatile market. All the information shared in the post is for knowledge purpose only. By no means, it’s financial or investment advice. Readers are responsible for their own investment decisions and should only invest in cryptocurrency after proper research.
Paras is a blockchain writer & video creator at Katoch Tubes. In his free time, he loves watching space exploration documentaries & Hollywood movies.