"The first purchases of gold from the Dash Investment Foundation were recently triggered on Vaultoro, which means that, in a way, the Dash cryptocurrency is now supported by gold!" - Amanda B. Johnson, supervisor of the Dash Investment Foundation
The Dash Investment Foundation (DIF), the world's first owner-less and member-less investment fund, recently purchased physical gold on the Vaultoro crypto-gold trading platform as part of the Dash rebalancing strategy in Gold of the fund.
What is the Dash Investment Foundation?
The Dash Investment Foundation (DIF) is an investment fund which was established on March 21, 2019 as a Cayman Islands foundation company limited by guarantee and is fully controlled by the decentralized Masternode network of Dash . The foundation creates a bridge between the network protocol and the legacy of financial and legal systems. This opens up new possibilities for the Dash network to invest and hold equity thanks to the financing available via the decentralized cash flow and autonomous treasury system of the Dash networks , which receives 10% of the total rewards from Dash .
Who manages the Dash Investment Foundation?
The Dash Investment Foundation has two directors, six supervisors and an investment consultant. The directors manage the current affairs of the foundation while the organizational and operational decisions are entrusted to the supervisors with the analysis, strategy and research provided by the investment consultant. Dash masternode operators elect six supervisors each year to oversee the foundation.
What is the Dash in Gold rebalancing strategy ?
Source: Dash Investment Foundation
The consultant investment Dash Investment Foundation and Forbes 30 under 30 Demelza Hays Research report Crypto have designed the Stratocaster CEE rebalancing to explain how it works
"The purpose of the strat CEE of Dash Investment Foundation is to accumulate more Dash and more gold by balancing the two non-correlated assets. The main idea is to sell Dash for Gold when Dash exceeds 50% of the portfolio and sell Gold for Dash when Dash falls below 10% of the portfolio. This ensures a countercyclical trading strategy that sells high assets and buys low assets. In addition to the passive rebalancing strategy , the foundation aims to actively invest in blockchain venture capital funds and start-up stocks. "
The first purchase order was completed from the initial tranche of 6 purchase orders on the Vaultoro platform. 75 Dash was sold for 120 grams of gold for an average price of 0.718 Dash per gram less a 1.9% manufacturer's fee charged by Vaultoro. This is just the first exchange of gold for the actively managed long-term rebalancing strategy that uses buy and sell triggers. The latest monthly fund report from the Dash Investment Foundation dated May 31, 2020 shows that the investment fund currently has $ 271,520 in assets under management held in Dash .
Source: Cryptoresearch.report
Mark Mason, public relations and communications manager for Dash shared his thoughts on strategy and presented the following chart and statement:
“As a long-term defender of precious metals and cryptocurrencies , I agree and support the strategy of hedging and rebalancing the DIF in material assets rather than in fiat currency, the purchasing power of which is destroyed by the economic recovery of the central bank. Since Dash and Gold are uncorrelated assets, they can present great swing trading opportunities if they are properly synchronized to increase the original holdings by moving between the two assets. The average number of Dashes required to buy 1 ounce of gold between January 1, 2019 and today is 18.08. We are currently above average at 21.60 Dashnecessary to buy an ounce of gold, so if we assume a medium reversion, the price of Dash should go up or the price of gold should go down.
Source: Dash
Dash trading for gold on Vaultoro
Vaultoro is a cryptocurrency exchange backed by venture capital allowing people to trade between crypto and physically allocated gold bars. Vaultoro supports crypto trading for Dash and Bitcoin . All gold is secured in leading Swiss vault installations. Since the launch of Vaultoro in 2015, they have traded more than 100 million euros in physical gold manufacturing and is the largest gold retailer in the cryptography industry, claiming to have more than 20,000 users in more than 95 countries.
In a recent video interview, Vaultoro CEO Joshua Scigala commented on the first gold purchase from the Dash Investment Foundation.
"I thought it was the perfect thing to do and now that the DIF is hedging some of its holdings of rare physical assets in physical gold that has existed for over 5,000 years, the value of which has been thick and thin, through each war in each nightmare that the human condition has thrown on gold, it has emerged by the other end, holding value. This is why I think it is such a good thing to do for a blockchain project that to hold value and other things, but to diversify this holding and then be able to invest in large projects in this space. While reinjecting everything in the Dash blockchain , the project and the community. "
Healthy money meets new money, the economy of scarcity
Dash and gold are rare assets. One asset is physical, the other digital, but both still uphold the fundamentals of healthy money. Gold has global historical and monetary importance as a store of value, while Dash is a cryptocurrency solution founded in 2014 and dedicated to borderless and unauthorized payments. Dash currently has 9,533,029 coins in circulation, with a maximum total supply capped at 18,900,000, making Dash rarer than Bitcoin .
Or Bugs and Cypherpunks Uni?
To be clear, this is a strategy of rebalancing investment funds using two assets at the price of a fiat currency. However, it is not only designed to develop the fund, it can also act as a reserve balance which so far is very rare for blockchain projects to date to incorporate gold to the exclusion stablecoins. The DashThe Investment Foundation is also unique in that the fund is decentralized and operates independently outside the realm of traditional banking and financial channels without the participation of fiat currencies. This may serve as a perfect vehicle to pique the interest and curiosity of gold insects aspiring to return to a gold standard, but it is missing the key piece of the puzzle on how to activate payments in the modern, digitally connected world. .
A common trend shared by proponents of cryptocurrency and gold is mutual aversion to central banks, fiat currencies, and the debt-based monetary system. Physical gold has stood the test of time for the preservation of wealth, but the digital age without borders is not ideal or practical as a medium of exchange for cross-border payments or electronic commerce. This could be a golden opportunity for gold advocates to form a holy union bridging the gap to work in tandem with crypto payments. With the cover of Dashand rebalancing in gold, this can help attract defenders of precious metals that are not yet immersed in the crypto sphere. It may be the perfect marriage for those who wish to opt out of traditional banking methods and traditional payment methods. It will be interesting to see how the gold community reacts to this news and this strategy of rebalancing.
A solution like the Dash Investment Foundation's gold rebalancing strategy could even convince cryptocurrency skeptics like Peter Schiff.
Is Dash a sleeping giant?
This has the potential to be the start of something big. The Dash Investment Foundation is well suited not only to invest but also to acquire private capital on behalf of the Dash network and has the capacity to invest in various funds such as gold funds, bonds and more. They have the structure and configuration to start buying in blockchain startups and even the ability to acquire other cryptocurrency assets. They are open to business and are currently examining investment pitch decks. It seems that the only limit for the Dash Investment Foundation is that it depends on the demand for funding from the Dash network.via cash proposals that come from 10% of Dash's block rewards . Dash's assessment and purchasing power will therefore largely dictate the success and breadth of investment opportunities that the Dash Investment Foundation can undertake. They must submit a monthly funding request to the Dash network and it is up to masternode operators to vote and approve funding proposals. If a cryptocurrency bull market were to occur and Dash were to return to its historic high of $ 1,642.22 (December 20, 2017), the DashInvestment Foundation could become a real force to be reckoned with, as this would cause Dash's monthly cash flow . cycle with more than 5 million dollars to potentially allocate to investments.
