Maker (MKR) - A Token With A Limited Supply Of 1-Million Units
I am in great search of cryptocurrencies that has a really low supply because chances are, these kind of digital assets could reach their highest values ever, in USD in a short period of time.
Maker (MKR) was introduced to the market last January 2018 with a bewildering $1,688 in fiat value. The time it was being offered it was around $25 in value last August 2017. It probably also got along with Bitcoin's bubble. This token is really quite intriguing why its value spiked that much? Today, its price in coinmarketcap is $545 after its recent all-time-high last March 25, 2019 in BTC value which is 0.18 BTC. Check the Yellow-Orange line below.
Screenshot is taken from coinmarketcap
If you will look at the spikes, then this coin is tremendously profitable for a Day-Trade.
Maker (MKR) is now at the top 20/21 in the coin rankings. It has an ROI of 2,370.31% so the early adopters of this coin surely gained much. MKR is mostly being exchanged at KuCoin, OKEx and HitBTC. Let's take an in-depth look at this cryptocurrency.
Maker is a smart contract platform on the Ethereum chain that backs and stabilizes the value of stablecoin DAI through a dynamic system of Collateralized Debt Positions (CDP), autonomous feedback mechanisms, and appropriately incentivized external actors. MKR tokens are created or destroyed in accordance with price fluctuations of the DAI coin in order to keep it as close to $1 USD as possible, and is part of a fully inspectable system on the Ethereum blockchain. MKR tokens are also used to pay transaction fees on the Maker system, and provides holders with voting rights within Maker’s continuous approval voting system.
So, this token is also supporting the stablecoin DAI to avoid its volatility it would experience in the market. This also means as a stable coin, its value should always be at a ratio of 1 : 1 or 1.0 DAI = $1.00 more or less with a tolerance of ( + , - ) $0.01 value. If BTC price gets lower, then it would get funds from Maker (MKR) to make it normalized with $1.00-value in the market. Aside from this, the funds are being established through collateral and lending programs. This is my own understanding based on that Statement
Let's all be honest. This cryptocurrency is quite new to me so I am still under the process of satisfying my inquisitiveness. Upon doing this, I have checked its subreddit where I was able to see Matt's story. The president and Chief Operations Officer (COO) of this promising program.
See the post here: https://www.reddit.com/r/MakerDAO/comments/bhzcgc/matts_story/
For more information about this surprising cryptocurrency, check their website here: https://makerdao.com/en/
Let's check out Dai (DAI):
Currently ranked #65 in coinmarketcap:
Please check the underlined statement. This is when Maker (MKR) is gonna stabilize the price of DAI to make it $1.00.
This only means they work hand in hand. I guess it would be nice if we HODL a few DAI and MKR as well. At least DAI is being backed up by Maker (MKR) so if the price of BTC, ETH, LTC goes up, SELL it by exchanging to DAI instead of Tether or USDT. After all, DAI is the FIRST decentralized stable-coin on the Etherium Blockchain. Really cool!
My own analysis of Dai (DAI):
There are many high potential blockchain applications that won't work optimally unless they have a stable coin to use, why?
Because people that receive an obligation to be paid typically don't want its value to vary depending on the volatility of the market. DAI is created when a user takes a Collateralized Dept Position (CDP). They deposit many kinds of collateral in an Etherium Smart Contract and the portion of the value of those locked assets are paid out in newly-minted DAI which they can trade for cash in the open markets if they like. When the borrower pays the debt, they also pay a stability fee and the collateral is released back to them. The corresponding Dai is destroyed.
Of course, if you only want to use DAI as a stable-coin, you can buy it in the variety of its exchangers without getting involved with the CDP's.
For now, I will include both of these Tokens in my portfolio and see how it goes for at least 6 months.
Thank you so much for dropping by and really grateful for the "support" you always give.
This is @fycee, follow me here on publish0x and check out my other posts as well coz I'm not only sharing crypto-related topics but interesting contents as well about life, travel, self-development and other online earning opportunities.
Update from the developer of MakerDAO:
Here is the direct link to see the developer's response:
I would like this update to be as transparent as possible since I am trying to review and understand the platform because it has sparked my interest in holding some MKR and enticing more people if they will be able to see my write up. Thank you so much for letting us know that it's not only limited to 1-Million units supply as what coinmarketcap has shown. Anyway, I would like to congratulate you for being in the Top 20 with coinmarketcap's ranking.
I would also like to encourage you to join Publish0x so you can also post your updates as well.
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