The first token will be pegged on the U.S. dollar. The company says it hopes the token can be a stabilization service for utility tokens and become a stablecoin.
The search for a more stable coin that can trade in and out of government-backed currencies while still maintaining its “taste” as a cryptocurrency is not yet over. This time, there is an announcement from Fragments cryptocurrency. Thus,they raised $3 million in venture funding round according to their Monday report.
The firm says the coin will stabilize the price by moving volatility from unit price to unit count. What happens is, if the price goes up, the protocol issues a new currency or “fragments.” This is to the benefit of Hodlers or people who held their assets to the point of price rise: there will be more tokens in their wallets over time even if they did not buy more.
The company co-founders are Evan Kuo, who is also founder of Pythagoras Pizza; and Brandon Iles, who worked as an engineer at Uber and on Google‘s search team. The project will take about six months to run a testnet.
The first token will be pegged on the U.S. dollar. The founders want the token to be “a stabilization service for utility tokens” as that would be the stablecoin, ideally.
The plan makes it a hold able and spendable token at the same time, according to Kuo. He said they might not raise an enormous amount in any token sale.
Kuo told CoinDesk that the venture funding meant to prove that the idea is long-term. As investors want a long-term involvement, ideally. The project venture round was led venture round led by True Ventures, with additional participation by Pantera, FBG Capital, Founder Collective and Coinbase CEO Brian Armstrong.
Evan brings a unique perspective to this problem, which is to be fair to all participants in the market and focus on long-term usability”.