What is the NGNT? The first Nigerian Stable Coin on Ethereum Blockchain

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When it comes to Cryptocurrencies in general, ranging from Bitcoin to the latest issued token any any other Blockchain, the stable coins are found to be of an interesting concept, what's even more interesting are stable coins backed by fiat. Now before I go into what the the difference between both is, lets first get a glimpse of what stable coins are.

According to Crypto101 , a stable coin is a Cryptocurrency pegged to another stable asset, such as gold or the US dollar. While conventional digital money like bitcoin is highly volatile, stable coins are generally traded at a fixed price.

This is the idea behind stable coins. Sometimes users just want to hold a certain amount of money in Cryptocurrency, wake up the next day and meet that same amount, not to a bloody market that will make such person regret such move. A lot of people have found themselves in unfortunate situations where they lost 98% of their assets' worth while holding through a bear market or a sudden DIP, a sensible alternative will be holding a stable coin that is detached from volatility.

Although in contrast to loosing a large sum of assets worth, there is also the possibility of gaining as much profit in the case of holding through a bull run. Some people will want to experience the latter. So the advantage of one over the other is totally up to the user.

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Stable coins come in handy for practically anybody involved in the crytoworld, whether you're an Investor, Trader, Developer or a Merchant that accepts crypto, although it will be safe to think traders are the ones that benefit the most from it's entire concept. The most common use case of stable coins for traders is for hedging their positions, acting as a form of safety net to either mitigate risk of loss or maximize profit in trading of other volatile assets.
Merchants also find stable coins useful due to the fact that some people choose to use Cryptocurrency to make online payments, without being subjected to the risks of volatility.

Let's briefly look at successful Stable coins we have in the Crytosphere and how they've been used over the time.

Tether(USDT) - Issued by the U.S startup Tether Limited is the most used Stable coin with a marketcap of $4billion, backed by the dollar. Tether (USDT) is issued on the Omni, TRON, and ETH blockchains.

USD Coin (USDC) - Issued by one of the most popular exchanges, Coinbase in partnership with Circle. USDC is issued on Ethereum blockchain. 1usdc is pegged to 1$. USDC has a market cap of $4million.

TrueUSD (TUSD) - is a cryptocurrency token issued on the Ethereum platform. TrueUSD (TUSD) price for today is $1.00 with a 24-hour trading volume of $4million.

These are only a few amongst others with each having one unique value proposition over the other which is not the focus of this post, although most stable coins go through regular scrutiny by both the community and regulatory bodies that ensure they audit all the financial claims that aims at keeping the coins backed with the actual fiat currency. Although there are also other stable coins that are not backed by fiat as collateral but by Blockchain algorithms., i.e, Cryptocurrencies e.g Steem Backed Dollar SBD.

But for the purpose of this post, lets stick with the Stable currencies backed by fiat, and the coin in particular which I'd like to bring into limelight is the first Stable Nigerian Token NGNT issued on the Ethereum blockchain. Every 1 NGNT is backed by one Naira in a reserve and is claimed to be audited by an independent company with their first report to be out in a few days. According to the CEO known as @timigod on twitter, he reported that these reserves and attestations shall be carried out in line with the provisions of the International Standards on Assurance Engagement (ISAE), Companies and Allied Matters Act (CAMA).

_{The NGNT is available on BuyCoins Africa. As afore mentioned, the intrinsic advantages of having a fiat backed stable coin is totally dependent on the user.}

Amidst trading, the NGNT can be useful in a myriad of ways which includes but not limited to payments of goods and services offered in Naira to merchants who are knowledgeable about crypto and are willing to accept crypto as means of payment, payment of salaries, ability to transact across the blockchain seamlessly and ease of use. The NGNT also employed a system known as the GSN(Gas station network) that enables the ability for Ethereum gas fees to be paid in NGNT rather than Ether.

As time goes on, we will begin to see other types of Nigerian related digital currencies, whether they be stable or not each delivering its own unique value. The NGNT while not exceptionally innovative is only the tip of the iceberg of what is coming. While crypto adoption is slowly gaining momentum around the world, the world of blockchain is heavily creating solutions to make adoption easier with applications that people can use everyday.

I remain optimistic about the developments in the world of cryptocurrencies and in the gradual adoption of the entire blockchain technology.

To know more about the NGNT click here
https://buycoins.africa/

Thanks for reading....seasons greetings.

Disclaimer
This is not a financial advice nor an endorsement of the project in subject, do your research before making any decisions based on the information discussed above.