Quote from Twogap White Paper- Term 3.
If we can keep the old investors with their money in the market, while simultaneously attracting more investors into the game, we can then see the growth of the total cash flow in the market.
How to do it?
If their investment capital is secured, they will stay.
How to secure their investment capital?
There should be a stop-loss product or tool, efficient and powerful enough to secure their wallets anytime the market shrinks.
Furthermore, this stop-loss product or tool needs a high liquidity to match the big investment sums in the market.
Does this stop-loss product or tool exist in the market?
Seemingly yes.
What is it?
They are USDT and True USD and Stronghold USD.
Will these products help investors stop loss?
The answer is still seemingly yes. If the market strongly declines, cryptocurrency investors will immediately turn to these stable currencies. They will cease transactions and keep these stable currencies, but they won’t generate any profit. If they want billions of dollars, they will not have the adequate supply of dollars to ensure the stability of their crypto coins.
Is there any stable cryptocurrencies that when investors keep them, they can still turn profitable and have a limitless supply?
The answer is yes.
What is its name?
We call it CryptoBonds.
Now, let’s compare USDT, True USD, Stronghold USD vs CryptoBonds
Stablecoin - USDT, True USD and Stronghold USD
StableCrypto - CryptoBonds
0% profit
profitable
are backed by their respective dollars in the bank. Therefore, the distribution scale is limited because the amount of dollars in banks are limited.
are backed by bonds. Therefore the distribution scale is limitless. In another way, the limit is the total bond volume in the world, approximately 100 trillion Dollars.
Now can you see that Cryptobonds is efficient and scalable enough for big investors to participate in the global crypto market?
CryptoBonds is the key to the answer for how to escape the medium scale trap created by the crypto market during the past nine years to become a mature market with trillion dollar scale in the next few. History will help us put this solution into perspective.
Let’s find out the way Bond has rescued and lifted the security market 300 years ago. Rewind on the history of the stock market. The stock market- humankind’s great discovery of the 17th century- laid the foundation to the development of economical growth on a global scale until today.
Turning back the time to the first days of the 17th century when trade ships of the legendary East India company crossed the Atlantic Ocean, Indian Ocean, Pacific Ocean, connecting the continents and beginning trade, bartering intercontinentally. Then within those ships, there are some that came back victoriously and profitably, while some remained at the bottom of the ocean. Ship owners invented a way to distribute risks, as well as distribute profits to multiple people. They divide the cruises into multiple small-value parts and sell the ownership to individuals or organizations called investors and the proof-of-ownership slips of the divided cruises are what we call shares. The selling and buying of shares take place in all the cafes scattering around London. As share prices increased, the market became more livid because this buying and selling generated profit for investors. The buying and selling of shares thrived so much that it became Europe’s first economic bubble in the seventeenth century just decades after the stock market began to form. Its peak was the Tulip bubble crisis whereby the Tulip bulb was traded between people, speculatively investing in search for super profitability. The bubble bursted after eight months of prosperity. It was the first financial crisis the global stock market faced. It evaporated two-thirds of the asset values that were converted into shares in Europe in the seventeenth century.
At that moment, appeared a new stock product called Bonds. These are pieces of papers validating respectively the companies’ and governments’ debts. Bond owners will be returned both capital and interest after the indicated period of time on the bond. It’s obvious that this new stock product called bond is humankind’s next invention.
Together with bonds bore the organizations with credit rating system. Created were the new stock product line with less risks than shares and high stability. The appearance of bonds has helped individual and organizational investors have more stable investment channels with a growing scale satisfying their every needs. Firms and governments have another abundant source of crowd fund to sponsor their trades as well as sponsor the governance of countries, pumping economic growth. Governments even use bond capital to fund colonial wars and fund World War I, World War II, and the Cold War.
Since the appearance and participation of bonds in the stock market, it has created a sustainable investment channel that has helped the whole market, pulling in more investors, new and larger cash flows, pulling in more new issuers, more intermediaries and forming new trading floors thereby increasing the growth rate of the global stock market. If you imagine the role of the two main types of securities products it can be described as follows.
If the appearance of the stock had formed and the initial stock market had been established, the bonds that appeared and took part in the later stage provided a solid fulcrum for investor protection. This is the reason why the growth of the entire global market is accelerating and the influence of the bond has extended the world financial crisis.
By 2018, the total global stock market size = $ 65 trillion + $ 100 trillion bonds. And with a global GDP growth rate of around 3% a year, the total market will double over the next 20 years, with bond trading always about 150% of Stock trading.
Learning and applying from history, how Bond has rescued and supported Security market for over 300 years, now Cryptobonds will rescue and support Crypto market is just history repeating itself, the proof is history and it's been done. But is Cryptobonds alone enough to sustain the entire market? Let's look next series.