ICO tokens are characterized by extreme volatility. Sometimes, a token can half or double in value in a blink of an eye. The cause of this volatility is that most tokens are driven by speculative interest.
Tokens are generally issued by projects that still need to develop not just their operations, but also their core technology. Naturally, this opens an investment outlet that offers a high-risk opportunity to potentially get exponential returns. Tokens lack an intrinsic value and so they highly volatile assets, moving drastic amounts on even minor events. Regardless, ICO tokens have quickly become an extremely popular investment channel and many investors within the cryptocurrency space include a variety of tokens in their portfolio.
Investing tokens isn't a standard investment venture, though. Almost every token represents a project that still needs to be developed. Thus, unlike a typical investnent, diversifying across many tokens does nit necessarily build a diversification in risk. In fact, the current cryptocurrency market does not provide the Crypto community with any way to diversify their portfolios with low-risk tokens.
A New Class of Tokens
For a token to offer a low degree of risk, it must have some intrinsic value.
A new project aims to deliver tokens backed by one of the most secure forms of debt in the world. Viva Network is tokenizing mortgage debt through its Fractional Mortgage Share Protocol (FMSP). This creates a new class of tokens that are backed by actual, real-world assets.
People can get Fractional Mortgage Shares on the primary emission by providing loans to people who need a mortgage. The issued tokens then receive interest on the money loaned out. Additionally, the tokens can be bought on Viva' FMS Exchange.
Mortgage-backed tokens open the mortgage market to all the calital floating within the Crypto market, while also allowing token investors to diversify their portfolio with tokens that are backed by intrinsic value. Fractional Mortgage Shares also provide a novel concept: tokens that provide a passive income.
Viva Network's FMSP is helping to mature the token market. It offers an obvious benefit to token investors as they will now have an easy way to diversify their portfolio's risk level. FMSP can also have a major impact on aggregate token investments.
Presently, tokens primarily appeal to people with an extremely high-risk appetite. The vast portion the world is very risk averse and so most people have never invested in a single token. Viva Network could be on the path to providing a security that could attract new interest to the cryptocurrency space by creating tokens that could appeal to the risk-averse masses.
Essential Links
🌐 Website: http://www.vivanetwork.org/
💡 Whitepaper: http://www.vivanetwork.org/pdf/whitepaper.pdf
👨 ANN Thread: https://bitcointalk.org/index.php?topic=3430485.0;all
💻 Telegram: http://t.me/Wearethevivanetwork
Connect with me:
https://bitcointalk.org/index.php?action=profile;u=1700741;sa=summary
instability is the true nature of crypto.
The volatility hampers greater adoption.
" FMSP " this will work good and with low risk token
@hatu how we get more steem by some other ways if possible write an artical for that that will be very helpfull
Yes, looking forward to Vivo's FMSP roll out.
You can get STEEM by writing content and getting curation rewards or buying it.
Real great contribution. I agree with you!
I would also like to mention that there is an ICO token that is supported in real value! I have written a small contribution about it! Would be interesting for you, to take a closer look!
Best regards
https://steemit.com/cryptocurrency/@patrick-haider/cryptocurrency-meets-real-economy-the-start-of-an-amazing-ico
Thank you.
And nice! I see you are making your own platform--impressive.
Thanks for giving information about Viva Network..!
You're welcome.
The instability stays in every token...!Thanks sir
And that's problematic.
Wonderful post
Thank you.
The only coin with real intrinsic value is Bitcoin.