Various cryptocurrencies are available on the market today, yet not all of them have any real value to them. In the case of Dash, that situation has now changed with the help of gold and Vaultoro.
The Dash Investment Foundation Plan
People familiar with the dash cryptocurrency will be aware of what is happening behind the scenes as of late. Unlike most altcoins on the market today, Dash is focusing on becoming a better and more widespread payment option. It has less speculative value, although that situation may come to change following a surprising recent announcement.
Putting this into perspective, the Dash Investment Foundation – or DIF – was launched in March of 2019. It is a memberless investment fund that aims to bring more value to Dash through various efforts. Control of this “entity” is linked to Dash’s decentralized Masternode network. Its most recent venture comes in the form of purchasing gold, which was made possible with the help of Vaultoro.
The DIF is currently incorporated in the Cayman Islands. What makes it so interesting is how the DIF will explore opportunities in traditional finance. Bridging the gap between legacy industries and modern ventures such as cryptocurrency and blockchain will be crucial for the future of any project.
To make proper investments, the DIF utilizes self-funding and self-governing through a treasury system automatically receiving 10% of Dash’s block rewards. This will ensure a steady flow of income that can be allocated accordingly based on overall market conditions.
Gold Rebalancing is Key
Contrary to what most people would have expected, the DIF is currently engaging in a gold rebalancing strategy. It is a very interesting approach, and the choice for gold makes a lot of sense. The precious metal has proven to be incredibly resilient throughout the past few years. Experts predict that there will be a higher value in the next 10 months, with prices reaching up to $3,000 per ounce.
Dash Investment Foundation’s Demelza Hays explains:
“The goal of the Dash Investment Foundation’s strategy is to accumulate more Dash and more Gold by rebalancing between the two uncorrelated assets. The main idea is to sell Dash for Gold when Dash breaches 50% of the portfolio and to sell Gold for Dash when Dash falls below 10% of the portfolio. This ensures a countercyclical trading strategy that sells assets high and buys assets low. In addition to the passive rebalancing strategy, the foundation aims to actively invest in blockchain venture capital funds and startup equity.”
Through the Vaultoro platform, six buy orders will be completed. During the first order, 75 Dash were sold in exchange for 120 grams of gold.
It is the first time that a platform allowed for convenient trading between Dash and gold. Vaultoro is the industry leader in this regard, as the company has been around since 2015. Its main focus is the trading between Bitcoin and gold, but Dash appears to have great potential as well.
According to the DIF, this gold rebalancing strategy is not a temporary decision. Instead, the goal is to make this a long-term actively managed rebalancing strategy utilizing buy and sell triggers. With over $270.000 in assets under management held in Dash, there is a lot of funds to explore different rebalancing options moving forward.
Vaultoro Keeps Evolving
The role of Vaultoro in this process cannot be underestimated. As a venture capital-backed crypto and gold trading platform, supporting Dash is a big decision. It is only the second cryptocurrency to be officially supported on the platform alongside Bitcoin.
Prior to the addition of Dash, Vaultoro has generated over 100 million euros in trades. Facilitating this rate of success is the growing user base – currently over 20,000 users from over 95 countries. Exploring the opportunities to trade between Dash, Bitcoin, and gold will help elevate Vaultoro to a new level in the years to come.
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