Kaxaa Tokens are likely stabilized through the unique Kaxaa Index which is not tied to the market forces around the Kaxaa Token itself. This makes the Kaxaa Token a great solution to stabilize transactions where purchases of property (or other goods) desire to use crypto for payments and other deposits, even purchasing a property outright using crypto. Crypto currencies are currently being used to progress real estate transactions, but escrow and other traditional operators are struggling with the wild volatility of speculative crypto currencies. This problem carries significant valuation risk during the time of escrow or during other longer transaction periods where. Holders of Bitcoin, Ethereum, and other cryptos may convert their holdings to Kaxaa Tokens which is inevitably more stable and far less likely to fluctuate dramatically during the transaction timeline.
It’s no secret that real estate property values around the globe have been pushing higher and higher and in almost every case outrunning inflation and interest rates. Higher inflation and “money printing” by large governments pushes down the real world value of money and the US Dollar which has eroded during the same period as real estate values soared far beyond the loss value of the currencies used to buy them. USDC, one of the world’s most prolific stablecoin is tied to the value of the U.S. Dollar. While this sounds like a great idea (as most crypto currencies are wildly unpredictable and volatile) the actual real world value of USDC tokens generally goes down or does not grow in the current economic environment, particularly with high inflation rates. The Kaxaa Token, though neither a speculative crypto currency nor a stable coin per se, is similar to the USDC Token in that it is stabilized through attachment to a massive economic index. The Kaxaa Token contrasts with USDC in at least one major way: Kaxaa is tied to indexes which have historically gone up in value along with inflation which keeps not just the price stable but helps flatten its value against rising costs 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.