Cryptocurrency came into existence in 2009. It gained popularity last year. Since then it has been extremely volatile in nature. It was designed to serve the purpose of money. Money has three main purposes:-
- Store of value
- Medium of exchange
- Unit of account
Unfortunately, cryptocurrency is primarily used as a store of value. It is still not accepted as a medium of exchange. People have to convert them into Fiat currency to exchange them. It becomes tedious to every time convert the cryptocurrency into Fiat currency due to the transaction problems and exorbitant fee rates of various exchanges.
Awax brings a diversified solution to this problem which aims at reducing the volatility through its blockchain technology.
“AWAX introduces the first platform where users can seamlessly invest in real estate funds, exchange-traded funds, passive coin-traded funds and active coin managed funds through a streamlined process and with significantly lower costs than traditional investing.”
It addresses some major issues of the real estate world and the crypto world.
- High volatility
- Counterparty risk
- High cost and complexity in conventional stock trading
- Trading restrictions
- No safe possibility of crypto bank investments
Awax addresses the above-mentioned issues. Their asset-backed PoA tokens empower investors to hedge the risk of cryptocurrencies in real assets without needing to convert their cryptocurrency into a fiat currency. All dividends and coupons will get automatically transferred to token-holders through self-executing smart contracts on the Ethereum network.
What we then think of is that is it actually safe? Are the details and our money safe with them?
It is backed back by ethereum based smart contracts. The content of the smart contract and the PoA token itself is unalterable, cryptographically secured and visible to everyone on the blockchain.
As stated in their whitepaper:-
“To ensure the safety of the underlying assets represented by the PoA ( Proof of Assets) token, a digital trust fund holds the exact same amount of fund shares as tokens issued. This securities account cannot be claimed by AWAX, the broker or anyone else, and is protected by strict laws regarding trust funds, even in the case of bankruptcy. Only token holders may reclaim their fund shares, at any time.”
How will Awax help the crypto users?
Awax will help the investors to diversify their portfolio. As stated in their whitepaper some of the benefits of the Awax tokens are:-
- Significantly lower the costs of investing in assets by cutting out the middlemen and pooling investment volume, Create steady returns in the form of dividends and coupons
- Hedge the systemic risk of a heated market, Clarify fees, tracking errors and liquidity, Minimize bureaucratic overhead
- Empower everyone to invest directly in global funds in every market, regardless of where funds or investors live.
Awax has developed four funds for its investors:-
Real Estate Funds ( REFs)
Exchange Traded Funds ( ETFs)
Coin Managed Funds (CMFs)
Coin Traded Funds (CTFs)
How to invest?
One has to first choose the type of fund they wish to invest in. Once users select a fund, they will be asked to deposit the desired investment amount into a smart contract. A minimal creation size helps reduce transaction costs and decouples the PoA tokens from the nominal value of the fund. After reaching the minimal creation size, the broker-dealer places a fund order. The purchased securities are then deposited into a digital trust fund by the broker-dealer. Simultaneously, the custodian of the digital trust fund issues a cryptographically signed electronic document confirming the receipt of assets. This document is verified by the smart contract to ensure that the broker-dealers order matches the user’s order. If the orders match, the smart contract treats this as proof that the broker-dealers obligations are properly fulfilled. The smart contract subsequently releases the user’s deposited funds to the broker/dealer, and a PoA token to the user. This token serves as a proof of assets.
Types of Tokens
There are three types of tokens based on the ERC20 standards.
Awax Tokens
It will only be released during the contribution period in exchange for ETH and BTC.Access Tokens
These tokens are for the broker-dealers and fund managers so as to list their fund on the AWAX platform and to pay market-determined AWAX fees when assets are sold. The tokens will then be burnt.Proof-of-Assets Tokens
For ETFs and REFs, PoA tokens represent real-world assets in the form of securities. For CMFs and CTFs, they represent a claim to coin funds on a secured trading account or in the custodians’ wallets. Users receive a PoA token in return for every fund in which they invest, which represents a legally enforceable claim to the underlying assets.
As said in their whitepaper:-
“AWAX is an inclusive investment platform that empowers people from all income classes to diversify their crypto-portfolio with real-world assets like ETFs and REFs. We will provide legal frameworks to directly link these assets to our PoA tokens. Furthermore, AWAX will lead the development of passively managed CTFs, as well as offer actively managed CMFs.”
Awax believes that by including more people in the global economy and enabling them to invest their money however they like, everyone will win: investors will pay significantly lower fees, have more options to hedge volatility and risks that accompany the digital economy and bypass unfair local jurisdictions. Furthermore, trusted brokers/dealers and fund managers will obtain an entirely new group of financiers, and underfinanced companies and industries will gain access to new capital.
Awax is aiming to build up a bridge to connect the old and new economy i.e. from traditional investment system to digital realm.
You can buy AWAX tokens @ rate of
1 AWAX token= 0.01 USD with a current bonus of 30%.
The price increases every day. Hurry to up buy the tokens at a low price.
Stay tuned for more updates! AWAX