Blockchain Ventureon: we have secured our cryptocurrency from the usual volatility of cryptocurrency
You do not need to be a great expert of cryptocurrency markets to note the obvious trait: the cryptocurrency rates almost exactly repeat the fluctuations of the BTC rate. The developers of Blockchain Ventureon have foreseen this specific nature and abandoned the habitual practice of dependence on this factor.
Why does this usually happen, and the cryptocurrency rates are very close to fluctuations in the BTC rate?
‘The thing is that Bitcoin has a fairly large share in the capitalization portfolio. This is true for all, without exception, cryptocurrencies, except, perhaps, Tether‘, commented, the managing partner of Hypercube Ventures, Viktor Sobor.
The Domino Effect
In practice, everything is quite simple: a classic domino effect takes place - the fall of BTC automatically reduces the capitalization of the cryptocurrency, which, in turn, affects the capitalization of other cryptocurrencies. For such processes, one effect of bitcoin suffices, and other negative factors, such as panic, etc., in principle, can be ignored.
What exactly has been undertaken in Blockchain Ventureon
When designing Ventureon, developers abandoned the perverse practice of depending on the BTC rate. VNN is denominated in euros, is ensured in euros, and small operational reserves in other cryptocurrencies are needed only to support atomic swaps and are not taken into account in total capitalization. Thus, the VNN rate does not depend on the volatility of the crypto markets.
‘We are the second, who managed to avoid the bitcoin hook at the design level. Even if the next panic leads to a large throw in the VNN coin market, the system smart contact will automatically redeem the surplus and will not allow the rate to go beyond the lower safe limit’, summed up Igor Brikov, the leading IT developer of the Blockchain Ventureon project.