What is crypto currency KAVA? Easy-to-understand explanation of features, mechanism, and future potential

table of contents

What is crypto asset (crypto currency) KAVA?
Three merits of crypto assets (crypto currency) KAVA (Kava)
Two disadvantages of crypto assets (crypto currency) KAVA
Future / future of crypto assets (crypto currency) KAVA
Cryptocurrency (Cryptocurrency) Recommended Cryptocurrency (Cryptocurrency) Exchange to buy KAVA
Two projects undertaken by Kava Labs
Summary of crypto assets (crypto currency) KAVA
What is crypto currency KAVA?

Here, let’s take a look at the characteristics of what kind of currency is crypto assets (crypto currency) KAVA.

Cryptocurrency (crypto currency) KAVA is a token derived from a project called the KAVA project and was released in September 2019.

As I will introduce later, it is attracting attention because it received the IEO of the major crypto asset (crypto currency) exchange BINANCE and received an investment from Ripple.

The number of KAVA issued is about 100 million, but currently only about 10% of it is issued, and it is expected that it will become more widespread in the future.

Features of KAVA

Providing a decentralized finance (DeFi) platform
Listed on BINANCE , a major crypto asset (crypto currency) exchange
Here, we will explain the features of KAVA.

Providing a decentralized finance (DeFi) platform

The mission of the KAVA project is to “provide a decentralized lending platform compatible with major crypto assets and a decentralized finance (DeFi) platform with Stablecoin.”

Decentralized finance (DeFi) is one of the keywords that has become a hot topic in recent years. Specifically, it is a financial system constructed by utilizing blockchain in the financial fields such as securities, insurance, and derivatives.

At the moment, there are projects such as a crypto asset (crypto currency) exchange called DEX, a crypto asset (crypto currency) lending service, and a derivative contract, which have no administrator.

As I will introduce later, it is possible to borrow USDX, which is a unique stablecoin, with major currencies such as Bitcoin as collateral.

Listed on BINANCE , a major crypto asset (crypto currency) exchange

KAVA is also attracting attention because it received an IEO from BINANCE , a major cryptocurrency exchange.

To put it simply, IEO is a company that wants to carry out a project to raise funds through a crypto asset (crypto currency) exchange, and the procurement is done after being examined by the crypto asset (crypto currency) exchange. Therefore, there is a merit that the reliability of the project will be higher accordingly.

BINANCE is said to be one of the largest cryptocurrency exchanges in the world, and is highly evaluated by investors, so it is considered to be a more promising project.

Since KAVA is listed on BINANCE , it is better to purchase it on BINANCE when investing in KAVA in the future.

Three benefits of crypto currency KAVA

Benefits of KAVA

Can be secured by multiple types of crypto assets (crypto currency)
Invested by Ripple
Can stake
From here, I will explain the merits of crypto assets (crypto currency) KAVA.

Can be secured by multiple types of crypto assets (crypto currency)

As I mentioned earlier, KAVA can borrow its own stablecoin USDX on the platform with crypto assets (crypto currency) as collateral.

Also, in this case, it is a feature of KAVA that multiple types of crypto assets (crypto currency) such as Bitcoin, Ethereum, and Cosmos can be used as collateral.

Similarly, there is MakerDAO in a project that provides stablecoin borrowing service with crypto assets (crypto currency) as collateral, but since this can only be used as collateral by Ethereum, KAVA is better. It can be said that it is a more convenient service.

Invested by Ripple

Ripple has invested in the KAVA project.

Ripple is the publisher of XRP, a popular currency with the third largest market capitalization (as of April 2020), and has developed various innovative projects with investment from a number of large companies such as Google. It is a noteworthy company.

Kava Labs, the development group of the KAVA project, is also developing its own stablecoin “USDX” using XRP, and expectations are rising due to the project supported by major Ripple.

Can stake

KAVA can do staking that you can get dividends just by owning it.

Staking is a system that contributes to the management of the blockchain network of a specific cryptocurrency (crypto currency) and receives rewards.

In the case of KAVA, you can get staking dividends from KAVA project fees, such as fees for transferring assets to other users and fees for exchanging USDX between users.

Just owning crypto assets (crypto currency) will lead to monetization, so it can be said that there will be sufficient merit depending on the progress of the project in the future.

Two disadvantages of crypto currency KAVA

Disadvantages of KAVA

Competitors are also appearing
Risk of inflation


Such KAVA also has its disadvantages. Let’s take a look at the disadvantages of KAVA here.

Competitors are also appearing

As I mentioned a little before, a project called MakerDAO is mentioned as a project that provides a service that allows borrowing with cryptographic assets (crypto currency) as collateral, similar to the KAVA project.

Currently, MakerDAO has announced a policy to increase the types of crypto assets (crypto currency) that can be collateralized in the future, although Ethereum is the only crypto asset (crypto currency) that can be collateralized, which will intensify competition. Probably.

Of course, the token of the project, KAVA, will also be affected, so I would like to pay attention to the progress of both projects in the future.

Risk of inflation

KAVA is always at risk of inflation.

While ordinary crypto assets (crypto currency) are issued by mining etc., KAVA is a newly issued crypto assets (crypto currency) with the approval of validators and delegators who are the verifiers of blocks.

Therefore, there is a risk of inflation due to new issuance.

Concerned about this, if the purchase of KAVA decreases, the distribution will decrease and the value may decrease.

Future and future of crypto currency KAVA

The future and future price status of crypto assets (crypto currency) KAVA can be considered to be influenced by the progress of the KAVA project and the movement toward practical use.

Expectations are rising for the development of further new technologies with the investment of Ripple.

Also, as I mentioned earlier, there is a competing project called MakerDAO in the KAVA project.

It is thought that the value will change significantly depending on the progress of these two projects and the competition for share.

When investing in KAVA, be sure to check the relevant news about KAVA’s projects and pricing on a regular basis.

Recommended crypto currency exchange to buy crypto currency KAVA

BINANCE is the most recommended crypto asset (crypto currency) exchange to buy KAVA.

As I mentioned earlier, the KAVA project is being developed with an IEO from BINANCE .

The token KAVA is also listed on BINANCE and is highly evaluated as a promising crypto asset (crypto currency), so be sure to use BINANCE when purchasing KAVA. Let’s look at!

Two projects undertaken by Kava Labs

Two projects undertaken by Kava Labs

Development of stablecoin “USDX” utilizing XRP
Development of “ILP Connector Switch”, an interoperability technology for crypto assets (crypto currency)
Here, let’s see what kind of project Kava Labs, the developer of crypto assets (crypto currency) KAVA, is working on.

Development of stablecoin “USDX” utilizing XRP

As mentioned above, Kava Labs is funded by Ripple, but among them, we are developing a stablecoin called “USDX” based on the token XRP issued by Ripple. ..

Stablecoin is also called “stable cryptocurrency (crypto currency)” and is a crypto asset (crypto currency) whose price is stable like the basic legal tender.

This USDX is developed so that the value is linked to the US dollar (USD).

By applying it to the decentralized finance (DeFi) platform implemented by the KAVA project and the unique blockchain called “Cosmos Zone”, blockchains, wallets, and cryptocurrency (crypto currency) exchanges It is expected to increase interoperability and liquidity.

Development of “ILP Connector Switch”, an interoperability technology for crypto assets (crypto currency)

In April 2019, Kava Labs announced the “ILP Connector Switch,” a technology that enhances the interoperability of different blockchains using the “ILP (Interledger Protocol)” advocated by Ripple.

ILP is a technology that enables “transfer of value between different ledgers”, and this “ILP connector switch” manages cryptographic assets (crypto currency) on different blockchains such as Bitcoin and Ethereum for a few seconds. It is said that it will be possible to replace it in the meantime.

This ILP technology has become an indispensable technology to realize Ripple’s goal of “valued Internet”, and the ILP connector switch developed in partnership with Ripple is part of the Kava Labs project. It can be said that it is the most promising service.

By establishing this technology, it will be possible to connect “cryptographic assets (crypto currency) and networks of financial institutions” and “different blockchains” in the future, which will contribute to the efficiency and convenience of transactions. It is expected.

Summary of crypto currency KAVA
Summary of KAVA

Providing a decentralized (DeFi) platform
Received IEO from BINANCE
Ripple is actively investing
Competing for share with competing projects is the key to the future
This time, we have explained the features, advantages and disadvantages of crypto assets (crypto currency) KAVA, and the future potential.

In addition to major crypto assets (crypto currencies) such as Bitcoin and Ethereum, there are many attractive crypto assets (crypto currencies) equipped with unique technologies such as KAVA.

Let’s investigate and deepen your understanding of various crypto assets (crypto currency) in addition to the KAVA project that applies the latest technology!

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