Drastic price moves are par for the course in the cryptocurrency market. Bitcoin has nearly halved its price over the course of a week after reaching an all-time high of $64,863.10 this year. The news has crashed exchanges and sent retail investors in a frenzy.
However, not every digital asset went down with Bitcoin. The correction could well be a sign of its shrinking dominance over the cryptocurrency markets, which has also decreased to a low of 39.93%. Long-term holders have long been looking into alternative stores of value, and the attention has begun to shift to those that offer greater stability and appeal to more conservative investors.
NDAU is such an asset. CoinMarketCap shows that NDAU has maintained its price in the $24 range despite the steep drop in technically every other offering on the market. A price it had reached after recent developments such as a listing on Bittrex Global and significant investments by institutional firms including Investview. Effectively, Ciarán Hynes, Managing Partner at NDAU investor COSIMO X, has called the asset “the only green in a sea of red” after its performance amid the current market correction.
The stability of NDAU’s price is not due to being pegged to any other asset, it’s due to its built-in monetary policy: no new NDAU is ever added to the supply unless market demand calls for it. The currency is built so that its price is paced safely through a curve that reflects its real value at all times.
The network also implements a mechanism that prevents the price from suffering in sudden downturns like the one occurring at the moment. Rob Frasca, director at NDAU’s original development team, Oneiro, recently explained how the network uses an endowment to buy back and reduce supply in order to keep a stable price during these “black swan” events:
“Now, this is a very unique property about NDAU. All that capital that comes in through the issuance, that’s seigniorage… Here, all the seigniorage, all that money, that capital that’s used to issue the currency goes into an endowment. That endowment is used to support the currency and support the monetary policy.
This is very important. It’s not pegged to the endowment. It’s not a stable coin. The endowment is used with one operator and it’s called the floor price… If it [the currency] reaches that floor price the endowment is then used to buy the currency, and when it buys the currency, it burns it. That effectively raises the floor price for everybody that’s still left holding. It’s rewarding long-term holders.”
These mechanisms, when put together, make NDAU the first adaptive store of value. One that allows its investors to benefit from the overall growth of the blockchain and cryptocurrency industry while also harboring them from its extreme volatility. Moreover, NDAU is a store of value that provides staking rewards to its investors. The network counts on the implementation of an Economic Alignment Incentive for long-term holders with up to 15% in yearly rewards. This is all done as a non-custodial in-wallet staking program.
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