Kaxaa may support crypto real estate transactions. Buyers who want to use crypto for earnest money and deposits face price swings during escrow. Holders of other crypto can convert to KAX to use as a unit in those transactions, but KAX is a crypto asset too, and its price can change. Why do some “stable” tokens collapse? TerraUSD relied on a peg mechanism tied to another crypto asset. Kaxaa takes a different approach: KAX is not pegged to, backed by, or redeemable for real estate or any asset, and its price is set by supply and demand. Kaxaa makes no representation that KAX will maintain a stable value or appreciate over time.
But not all stablecoin concepts are created equal. There is no way to avoid the recent news all over the crypto and finance world of the TerraUSD, a stablecoin tied to another crypto asset (not directly to a USD index) which was tied to Bitcoin. A stabilized coin is only as good as the assets and market which back it. The reason experiments like TerraUSD go horribly wrong is that their value is entirely based on crypto assets and have no real world connection to traditionally valuable assets such as land, cash reserves, gold, etc. Simply put; stable coins based on the stability of exceptionally volatile crypto currencies are bound to fail with the wrong mix of ups and downs that can happen in the blink of an eye. Kaxaa’s value is based on real world market indexes with liquidity supported by contract to real world assets. Historically real estate and actual USD cash holdings have outperformed almost every market in terms of stability and long term growth and they are the right economic forces to help build more reliable stability in the long and short term. Of course the possibility for markets to falter is always present, the odds favor real world economic forces and assets versus risky crypto experiments like TerraUSD which rely on wildly volatile components.