About Project Maker

Almost ten years have passed since the first digital currency was issued. It is worth noting that Bitcoin is not an ideal cryptocurrency and it has many different drawbacks and flaws. It is for this reason that many modern development teams quite often launch new cryptocurrency projects with their virtual financial money. Naturally, each of these projects strives to become better than the previous ones and to gain leading positions in the global cryptocurrency market.

In this article, I would like to pay attention to an interesting and very promising platform called Maker. It should be said that at the beginning of this year, the tokens of this project demonstrated a very positive growth rate of their market value.

Maker is a cryptocurrency project that was released in early 2015. Maker operates on the Ethereum blockchain. The development team states that their main goal is to form a full-fledged decentralized currency, which will be assigned to fiat money or various other assets. In other words, we are talking about stablecoins.

Stablecoins are a unique digital currency that is tied to the stocks of fiat funds, as well as some other groups of real assets (for example, gold or oil). The main feature of stemcoins is that their rate does not undergo such strong jumps as the rate of other digital funds.

It must be said that the main digital currency of this platform is not the MKR token of the same name, as it would be logical to assume, but a cryptocurrency with the DAI ticker. This coin is pegged directly to USD and is currently the only token that has been issued (excluding MKR). You should pay special attention to the fact that the market rate is always stable, and one DAI is equal to one dollar.

If the development team continues to follow the project roadmap, then on the basis of Maker, an independent decentralized cryptocurrency exchange will be formed in the future with the implementation of margin-type trading and the ability to use many types of digital currencies. However, there are currently only ERC-20 tokens on the platform.

Maker is a decentralized project. It is for this reason that many cryptocurrency experts call it MakerDAO.

It is also worth mentioning that MKR tokens were issued in order to attract more contributors to the project. The owners of these tokens act as shareholders who can have a direct impact on the platforms ecosystem. All decisions are made by a general vote.

Maker features

As you know, the main purpose of the existence of cryptocurrency is to completely rid the world of fiat money, as well as to completely transfer all types of financial transactions into digital format. It is the tokens of the Maker project that can solve two main difficulties that currently exist in the field of cryptocurrency and prevent the introduction of digital money into the real economy. The main problems today are that:

the real cost of cryptocurrency on the market is not determined by anything other than user demand;
cryptocurrency is currently too volatile, and its rate is volatile due to frequent surges.
It is for these reasons that to date, no cryptocurrency has been successfully integrated into the economy of any state. However, it is the Maker project that can change everything.

This raises a logical question: what is the point of investing in this project for ordinary investors? Given the fact that the main token of the DAI project is rigidly tied to the USD rate, it can be understood that it will be impossible to make money on the rate races. Nevertheless, it is in DAI coins that you can safely invest in order to make a safe deposit, especially in the long term. If you constantly store your deposits in digital currency, then a certain part of the income will burn out due to the high volatility of assets. And regularly converting digital money into real money and back is too difficult, time-consuming and unprofitable.

Since DAI is a decentralized stablecoin, this particular token is the most attractive for many investors, because it is an excellent opportunity to fix your income. When the exchange rate jumps, the investor will not lose his investment, but simply freeze his assets in DAI coins for a while, which will definitely not change their value, because their rate is fixed. You just have to wait for a favorable situation on the market - and you can again take part in trading with minimal losses. This is precisely the main attraction of this project.

In turn, the market price for MKR tokens is very volatile. Due to various factors, sharp jumps in the rate often occur. It is worth noting that this token is not entirely suitable for investment in the long term, but you can make good money on the rate jumps. I would also like to note the fact that most investors, speaking about the digital currency Maker, mean exactly MKR coins.

In any case, this project is promising and interesting for both ordinary users and experienced traders. It is definitely worth paying attention to.

How is Maker created?

First of all, it must be said that Maker mining is not provided by the system. As a result of the one-time emission, the development team released one million tokens. Currently, almost all coins have already entered the public domain.

There is only one way to get MKR coins - purchase on one of the cryptocurrency exchanges. Most coins are traded on three exchanges:

Kyber Network. Traded in pairs with ETH, 14 percent of the total trading level;
Paired with USD, 12 percent of the total trading level;
Paired with EUR, 10 percent of the total trading level.
However, despite the fact that almost all tokens are on sale on not the most top cryptocurrency exchanges, a certain part of the coins are on OKEx, HitBTC, Gate.io, KuCoin and some others.

Is Maker Endless?

MKR tokens cannot be mined in any way. As mentioned above, they can only be purchased. It is for this reason that it should be noted that these tokens cannot be infinite. Their number is limited to a one-time emission, during which one million coins were issued. Additional issues are not planned, and the number of coins will only decrease in the future.

It is necessary to pay attention to the fact that when carrying out any intrasystem financial transactions as a result of the commission, the coins are burned out. This means that over time there will be less and less of them, and accordingly their market value will grow. This is an indication that the Maker project originally thought of a price increase mechanism.

Makers strengths

The very idea of the existence of stablecoins has found wide support among traders and cryptoexperts, as well as among investors and ordinary users. It is the Maker project that has every chance to get rid of one of the main problems that prevents the widespread adoption of cryptocurrency and prevents its widespread adoption as a payment instrument. Due to the material security behind Maker, the project is developing rapidly and is very promising.

The fact that Maker is backed by fiat money contradicts the very essence of cryptocurrency, because, according to the initial idea, the value of a digital currency should only form the demand for it. But, perhaps, it is precisely such a decision that will lead the project to success. After all, this ensures greater reliability, and, accordingly, increases the level of confidence in the project on the part of ordinary users and large investors. It cannot be said that the idea of the project itself is original or fundamentally new, but the methods for implementing the idea deserve attention.

The release of decentralized stablecoins allows Project Maker to:

ensure complete freedom of action in the implementation of all financial transactions;
get rid of political and geographical boundaries in the process of implementing any transactions;
maintain complete confidentiality for users;
fight monopolists;
save on the fact that there are no taxes for the conduct of activities, and financial transfers are not subject to additional costs for paying taxes;
guarantee financial independence from various government agencies that will no longer be able to access the personal financial transactions of users.
All these factors contribute to the successful operation of the project in the modern world, allowing it to attract new investors and win more and more fans in the field of alternative cryptocurrencies.

Naturally, in order to fully understand the strengths of the Maker platform, it is necessary to compare it with other cryptocurrency projects, within which stable tokens also function. The main advantage of MKR tokens on the Maker platform is their independence and absolute transparency of all processes within the system. The platform operates exclusively on the basis of the Ethereum blockchain, and this guarantees full transparency of all activities. It is also worth noting that, if desired, each user has the opportunity to access any data of interest to him about the Maker platform and the current position of the project.

In addition, it must be said that in other systems that operate on the principle of stablecoins, tokens are backed by deposits in bank accounts and are outside the blockchain. Users of the Maker platform can be confident that DAI tokens are backed by real-world funds and can be converted at any time.

DAI tokens are generated and used directly by members of the Maker network. In order to issue his DAI coin, the user creates a Collatterized Debt Position (CDP), sends his ETH to a special address of the smart contract. Currently, there are about 85 million DAI tokens issued, but their market value is significantly lower than the main currency used on the Maker platform.

Based on all of the above, we can conclude that the Maker project actually has many strengths. It is worth considering the fact that all the processes that ensure the operation of the system are extremely difficult, but they are thought out to the smallest detail and completely reliable.

Maker in TOP currencies

Currently, Maker cryptocurrency with MKR token is ranked 22nd on Coinmarketcap with a value of $ 478 per coin. The market capitalization is over USD 478 million, and the trading volume for the last 24 hours has exceeded USD 5 million. It is worth noting that the value of this cryptocurrency has been relatively stable lately. The maximum price for one coin was 1600 USD, however, according to experts, such a jump should not be expected in the near future.

If we talk about DAI coins, which are located on the 53rd place on the Coinmarketcap website, then everything is clear with their value, because one token is equal to one dollar. If, for some reason, the value decreases slightly, then this entails a massive purchase of coins, which in turn becomes the reason for the increase in value to the usual level. The market capitalization of DAI tokens exceeds $ 85 million, and the volume of daily trading is usually kept at 4.5 million.

It is worth noting that the project development team plans to release tokens in the near future that will be pegged not only to the US dollar, but also to other currencies, including euros, pounds and yen. Undoubtedly, such a decision will generate massive interest in the project, and the cost of Maker will increase significantly.