Stablecoins have been the buzzwords in crypto-space for quite some time now and the craze doesn’t seem to be ending at all. After having a few stablecoins backed by US dollar, Asian companies to have started introducing coins that are backed by local currencies, latest being a stablecoin backed by Korean Won.
KRWb- Korean Won backed Stablecoin is Now Beta live on Airswap
Continuing the craze of introducing stablecoins backed by different currencies, KRWb has introduced a new stablecoins that find itself pegged to Korean Won in 1:1 ratio. The team has finished deployment of the initial smart contract and now has launched the live beta period over the next few weeks on AirSwap, a decentralized exchange, before proceeding some anticipated prominent Korean and Global exchange listings. The coin is an ERC 20 token and current total supply is 400,000,000 KRWb.
According to the Medium post, the mechanics of KRWb would work as
“1 KRWb token will be created for each 1 KRW deposit into the KRWb treasury. This “digital KRW” will be created as an ERC-20 token that can be easily transferred globally or held by anyone who has access to an ERC-20 compatible wallet. The KRWb team will not put any KRWb tokens into circulation unless they are, at a minimum, backed 1:1 by fiat KRW inside of the company’s Korean treasury reserves.”
The team behind KRWb will be responsible for managing the minting and burning operations through an Ethereum smart contract process that requires a multi-signature checkpoint and a 3rd party auditor would be appointed to regularly audit. At launch, there will be a limited number of “KRWb Issuance Partners” who will have the responsibility of distributing KRWb to the market and supporting liquidity. As there is just select nature of KRWb Issuance Partners, these parties will have to pass a rigorous KYC/AML check and will be able to continually meet a high-quality customer service standard to offer liquidity for the KRWb community.
According to the post, KRWb comes with some definite advantages which include
- A stable store of value that can be denominated in KRW
- Global accessibility of value transfers in and out of Korea
- Alternatives to KRW Foreign Exchange rate hedging
- Over time, a reduced variance of cryptocurrency prices within Korea vs. global markets
With respect to availability, the team has plans to bring the stablecoin on leading Korean Crypto exchanges, global exchanges and certain selected DEX’s. The team also plans to take this to stablecoin to OTC desk partners to encourage liquidity. Over the period of time, it is anticipated that KRWb would be available in exchange for Bitcoin (BTC), Ether (ETH), KRW, USD, TUSD and more.
While the idea for now looks good, but one will have to see how it is accepted in the markets. With so much of trading coming from Korea, the coin could be the first choice of Korean traders to park their funds into to avoid volatility.
Will KRWb, achieve the targets and become one of the top stablecoins? Do let us know your views on the same.