Taking a look at the most developed economies, that are also the best performing ones, they have two specific characteristics. They were stable during a long space of time and they do have a liquid market. Economies that suffered from volatile economic cycles and that couldn’t sustain a liquid currency, ended up in serious problems.
The cryptocurrency market works in the same way. It needs stability and liquidity in order to prosper, grow and flourish. But how can we achieve that? Boon Tech has the answer. This company has created what they have called Boon Dollars (BD) in order to stabilize the cryptocurrency market. In addition to it, they use a patent pending technology to increase liquidity and stability.
Boon Tech is a Free freelance marketplace where clients, as well as freelancers, meet in order to fulfil each others requirements. The platform is based in blockchain and has built Boon Coin for its community. The intention is to inspire as much participation in the community as possible.
There are two big problems in the cryptocurrency market that Boon Tech tries to address and solve. There is not a stable (not volatile) virtual currency market and sometimes it does not provide liquidity. Boon Tech platform provides a hedge against United State Dollar to avoid this volatility and will aim to increase its liquidity with the patent pending technology.
Boon Coin, the Currency to Stabilize the Market and Gain Liquidity
Boon Tech has created what they have denominated Boon Dollars. They use a mechanism similar to the one used in convertible notes. A convertible note is a form debt (short-term one) that converts into equity. Individuals will invest in a start-up and they will receive back an equity in the company.
Boon Tech is different. It has a patent pending technology. This is what will bring stability and liquidity in their platform. With convertible tokens, holders can convert the token at the market price with a minimum notice. This is an incredible opportunity for investors. Fiat based competitors can’t evolve into a blockchain technology and, at the same time, foreign competitors can’t enter into the American market and use this hedging mechanism to compete with Boon platform.
In order to create Boon Dollars, a reliable price, rules that aim to prevent abuses, and liquidity are the most important requirements needed for a stable business on blockchain. It is important to mark that Boon Dollars are pegged to the United States Dollar.
With Blockchain technology, different measures must be found in order to prevent abuses in the system. In this way, volatility will be reduced to the minimum. Convertible Boon Dollars will end up being stable.
Boon Dollars can be easily converted immediately into dollars at the market price at the moment. Though, this does not mean that it will be a dollar replacement. The market will be a really liquid one. Boon Coin, when converted to Boon Dollars, will provide immediate liquidity of the assets. This will be instantaneous, providing the required liquidity that the cryptocurrency market needs but cannot find at the moment.
How to Increase the Market Liquidity?
In order to solve the liquidity problem in the cryptocurrency market, Boon Tech has developed a patent pending technology that increases the liquidity by hedging the cryptocurrency against the US Dollar. Boon Tech believes that the most stable currency in the world is the United States Dollar. This is the reason why it has decided to hedge the cryptocurrency against the US Dollar.
As mentioned before, Boon Tech is a free Freelancer platform that allows freelancers and clients to meet each other. It works in a simple way. When somebody uses the platform in order to hire a service, he will have to make a deposit with the amount that the service cost. For example, if you search for a specific work, you will have to pay for it in advance.
Once that deposit is done, Boon platform converts this money into the equivalent US Dollars. The way it is processed is via a couple of API calls and a patent technology. The platform works with two major API’s among some other API we have developed: Coinbase API and GDAX API. The cryptocurrency deposited is converted into Boon Dollars, that is pegged to the United States Dollar. Once the vendor completes the job, Boon Dollars will be immediately converted to another currency. Boon Dollars can be exchanged for US Dollars or any other cryptocurrency available that the vendor would choose.
The intention of the platform that we are analysing is to create extreme liquidity in the market. Why is it in this way? Because the market must remain liquid for the participants that want to keep trading in this market. Those who play a major role in leaving the market extremely liquid are the Liquidity providers.
To make it clear, Liquidity providers are these users that utilize the platform for hiring other freelancers or providing services for clients. While performing these activities users are able to earn rewards. If a freelancer is contacted by an employer, both of them are rewarded. In order to earn Boon Coin rewards, registered users must consistently provide services as freelancers and clients should hire more freelancers from the platform.
The cryptocurrency market needs a stable situation and liquidity. This will provide a long term healthy economic growth. Modern and prosperous economies could achieve the two most important factors that we mentioned in this article. Boon Tech is working hard to provide innovative solutions to the virtual currency market.
Boon Tech, with its technology, will provide stability and liquidity to the cryptocurrency market. With the patent pending technology, the problems about liquidity will be addressed. While being pegged to the US Dollar, Boon Dollars will be stable and guarantee a less volatile cryptocurrency market.
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