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(Kitco News) – Economist Nouriel Roubini, also known as “Dr. Doom,” appears to have succumbed to the “If you can’t beat them, join them” adage, as the well-known crypto skeptic’s asset management firm, Atlas Capital, has announced that it will be launching its own crypto token.
The Atlas Climate Token (ACT) is designed to be a blockchain-based stablecoin that will be pegged to a portfolio of real-world assets, Atlas Capital said in an overview of the ACT released on Oct. 31.
“Pegged to a carefully chosen portfolio of liquid real-world assets – climate-resilient REITs, strategic commodities, inflation-hedged sovereign bonds, and gold – The Atlas Climate Token is a democratized modern investment solution for users worldwide,” the document said.
The ACT token will be based on the firm’s Atlas Index, “a thematic investment strategy to accelerate the global transition to a net zero economy by investing in treasuries, gold, food & water, green metals, resilient real estate, and sustainable communities that have been the foundation economic stability for centuries,” the ACT explainer said.
“The Atlas Climate Basket reflects the Atlas belief that traditional real assets can be new and innovative and need to be delivered in a manner that keeps pace with changing investor needs in volatile markets,” they added.
“Leveraging fintech, AI, and climate tech, Atlas aims to create a globally accessible stablecoin underpinned by an index trading tangible, safe haven assets,” they said. “The Atlas Index powers an investment strategy that is designed to deliver inflation protection and monetary stability, whilst investing in long-term socio-economic and environmental prosperity.”
To determine the price of each ACT, the Atlas Index will utilize advanced artificial intelligence, machine learning, and data processing tools to “track and measure the price performance and volatility of liquid, stable, and negatively correlated legacy assets that have formed the foundation of the US Dollar (Gold, Real Estate/REITs, US Treasuries),” the firm said. “Atlas offers an investment strategy focused on integrating tangible, regulated safe haven assets with TradFi and DeFi products, enabling scalable distribution, adoption, and seamless integration to provide a more stable complementary hedge to US dollar instruments.”
The weighting of the token will be 55% U.S. Treasuries and Treasury Inflation-Protected Securities (TIPS), 20% gold, and 25% North American REITs.
“We believe fintech innovation holds the most solutions for mobilizing capital at scale – for wealth preservation, climate adaptation, and building resilient, prosperous communities,” they said. “The Atlas Climate Token is designed for large-scale adoption aiming to mobilize private capital in funding climate adaptation and sustainability and become a leading, regulated digital token backed by real assets.”
While the launch of their own token may seem somewhat hypocritical for a crypto skeptic like Roubini, it is worth noting that the various assets being used to back the token align with statements he previously made regarding good investments for the troubling times he sees ahead.
Roubini has also focused his negative opinions on “useless” cryptocurrencies that have no real value backing them, calling the industry “totally corrupt” and “the biggest criminal heist in human history.”
Rather than being a store of value type crypto that relies on traders selling the token on the open market to determine its price, the ACT more closely aligns with the ongoing integration of tokenization into financial markets, and would technically be considered a non-fungible token.
Roubini has sounded the alarm on rampant global debt that continues to grow unabated and warned we are on the road to a financial crisis that will lead to runaway inflation. The addition of multiple wars, issues with immigration, and the possibility of another pandemic have only reinforced his calls for investors to seek shelter in assets that serve as a hedge against those risks, and ACT is presented as one such safe haven.
The firm said its portfolio has seen gains in 48 out of the past 51 years, with an average return of 8.2% and an average volatility of 6.7%.
“ACT Stablecoin offers a higher performing, more stable alternative” to the U.S. dollar, they said. “Atlas portfolio has quadrupled its value in the last three decades, while the dollar has halved.”
Atlas performance vs. the U.S. dollar. Source: Atlas Capital
The firm said it is also planning on launching an exchange-traded fund in the first quarter of 2024.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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