- September 17, 2018
- Posted by: Mor Hazen
- Category: carats blog posts
The latest generation of digital coins includes those backed by commodities, giving the tokens stability and value. We found some of the more wacky and interesting coins out there.
While many of the early crypto fans have been enjoying the adrenaline rush associated with the red-hot volatility of digital currencies, the fact remains that most people remain anxious about investing in these unstable assets. This lack of stability has been a major obstacle on the road to widespread, mainstream adoption of crypto. With this in mind a number of entrepreneurs and developers have been backing their virtual tokens with real-world commodities, ensuring real-world value and stability.
Some of the first such commodity-backed cryptocurrencies don’t come as much of a surprise. They included tokens linked to gold, silver and oil – each commodity with its own advantage and disadvantage. However, there are a number of more interesting coins, ones which take a creative look at the commodities and resources around us.
1. Bananacoins – Two Russian entrepreneurs and a Thai agronomist walk into a banana plantation in Laos… No it’s not the beginning of a joke, it’s actually the story of the team behind Bananacoin, a cryptocurrency backed by bananas. The coin’s value is linked to the export price of one kilo of bananas. As wacky as this may sound, this lends the coin a certain security and stability (although there is less real-world use – I’m not sure who exactly would want to redeem their whole crypto wallet into bananas).
2. Cannabium – This token is backed by liquid cannabis extracts (from legal sources only). As the cannabis industry goes legal and mainstream, the developers behind Cannabium hope their coins can retain a high level of value and stability. Their currency is probably the first known currency which – when redeemed in real form – can help get you through tiresome family dinners and stressful day at work.
3. The WhopperCoin – Ok, this one was more of a P.R. stunt than an actual attempt at creating a universal currency, however, it is still one of the more creative and exciting uses of crypto. Last year, Burger King Russia launched their burger-backed crypto. For each Whopper eaten, consumers would be given tokens which they could then trade and redeem for free Whoppers. COOL.
4. PowerLedger – This company backed their crypto with a resource most of us barely acknowledge even as it washes over us daily – the energy of the sun. As solar energy technology spreads and becomes more lucrative, their token – backed by units of solar power – could begin to accumulate value.
5. “El Petro” – I know we already mentioned oil-backed crypto in the first paragraph, but the case of ‘El Petro’ is unique and interesting. Venezuela’s economy has been plummeting under the leadership of its current president – Nicolas Maduro. In a bid to continue to export the country’s reserves of oil even as the local currencies are plagued with inflation (and to – perhaps – bypass international sanctions and regulations *cough *cough), his government began issuing the crypto coins based on their oil reserves. With most Venezuelans living in dire poverty, we can only hope that they will eventually find a way out of the current crisis and see better times.
With so many interesting commodity-backed cryptocurrencies out there, we recommend reading up on the reasons why diamond-backed coins, in particular, are the most attractive and exciting investment.
To find out more about what makes diamond-backed currencies so exciting, join the Carats.io Telegram group.