While the health crisis is far from over, all asset classes are already feeling the first devastating effects of the global recession that await us. All? I’m not sure … it’s time to take a look at what we call « alternative investments » … Interview with Jean-François Faure, CEO of AuCoffre.com
JP Morgan didn’t believe it. In a release followed by a report released in September 2018, the financial giant predicted a major financial crisis by 2020. The feeling was good, but the reality, as it often occurs today, obviously exceeds all predictions: Doped by the unexpected coronavirus that emerged looming global recession, hits well beyond the liquidity crisis identified by JP Morgan and the estimate of a correction of 20% in the stock market: the measures taken by the bank itself have loosened more than 40% since the end of February.
In this context, the questions that are on everyone’s lips all revolve around two topics:
Some are already responding that gold will once again become the standard of refuge, as it has done in several crises (and wars). Others are heralding the heyday of cryptocurrencies soon, Bitcoin at the forefront, which the long-awaited public is now showing a keen interest in, concerned about the health crisis linked to a decline in « classic » currencies.
Others, savvy, have been reaping the rewards of a right vision for weeks, backed by a value proposition that comes at the right time in today’s environment. This is the case of Jean-François Faure, CEO of the AuCoffre Group, which offers the “best of both worlds” with its VeraOne cryptocurrency, a “stable coin” with physical gold.
I asked him about his analysis of the current situation from an investor’s perspective and asked him to elaborate on what makes his value proposition unique.
When and how did you « fall » into crypto assets?
I first met with the folks at Maison du Bitcoin (Ledger, CoinHouse) in June 2014 to see if something could be done between them and us, such as the BTC Cold Guard. No follow up and we let the idea rest (the Maison du BTC that they put in the ledger at the end of 2014 …). At the same time, we had already had a payment system based on a MasterCard card with gold coins, the VeraValor, since 2012. It worked so well that we resolved this activity and turned it into a form of neobank where the only currency used, VeraCash, is backed by precious metals. It seemed logical enough to apply this to the crypto universe. In 2016 we carried out a (successful) management poc for our police register. We felt walled in to go further. So an ICO will be held in 2018, but we conclude that this is not an idea as the only viable business model was to sell physical gold to the people who responded to the operation. So the ICO didn’t make sense. It then became a project to sell a token that was paid for with common cryptos. Finally an independent project from VeraCash. VeraOne was born. Why VeraOne? Because at the same time, it’s also a 1 gram coin that you can get if you want to convert your tokens into physical gold that will be delivered to your home. The basic unit is 1 gram of physical gold, 1 VRO = 1 gram of pure gold.
Do you consider yourself a « lucky charm » or do you claim to have received the fruits of a precise and timely strategic positioning in crypto assets?
“A helping hand, no, it’s exactly the opposite. For example, the original deal was hit hard in 2017 by the surge in crypto prices. On the other hand, it gave us a huge kick in telling ourselves that it wasn’t too late to act on our side and take advantage of what we thought in 2014 and what others are doing on the same day. from our experience. Gold that we know by heart, its preservation and the crypto / blockchain expertise that we have always maintained to at least know what we were talking about. In short, the pace was still good, we made it. That gold is in the spotlight today as it was 12 years ago when AuCoffre was launched is indeed a promising context. The introduction of new services at this time could give the impression that we have some idea before the price or people’s appetite for gold. That’s not the case. On the other hand, we know that gold is cyclical, that it overreacts to crises, that an impending crisis was obvious to us (just like in 2006 when I thought of an impending crisis). Whether it came from a virus was unpredictable, but it does trigger certain things that should happen sooner or later.
Are you also involved in blockchain and its applications?
We have been involved in blockchain projects since 2016 and are currently forming a blockchain consortium for companies that need this type of techno.
What does a stablecoin like VeraOne bring?
As a reminder, a stablecoin is a crypto asset, the price of which is tied to a stable asset. They were created to be able to exchange cryptocurrencies for stable assets without leaving the blockchain (originally for high frequency trading).
The company issuing such a crypto-asset therefore undertakes to keep the entire underlying asset in private reserves. Without this, the « stablecoin » would only be the result of an artificial token creation that has no value guarantee
Here it seems relevant to consider the case of Tether, the most important and well-known stablecoin that has overtaken Bitcoin in terms of daily transaction volume since 2019. If the dollar counterpart (1: 1) was the origin of the project, a change to its support was made on May 14, 2019, which now includes loans to affiliates. In this regard, Tether Limited’s attorney admits on April 30, 2019 that the parity is actually only € 0.74, i.e. € 0.74. H. (0.74), if the company historically claims that each coin is backed by one US dollar: 1). This radical change should be put into perspective in light of the various scandals that have struck Tether Limited, particularly with regard to the examination of its reserves. As early as 2017, Tether’s management demanded the early end of the examination process that had been initiated, as it was classified as « too long and too complex ».
In addition, the terms and conditions even state that Tether Limited does not guarantee a « right to redeem or exchange Tether for cash ». In addition to the terms and conditions, Tether Limited also declares that the owners of Tether have no contractual rights, no legal recourse or no guarantee that the Tether will ultimately be traded at par
Since it is subject to US law, the PAX token (guaranteed 1: 1 with the dollar) has introduced a « setLawEnforcementRole » function with which the authorities (or people with access to the function) can manipulate anyone Wallet.
All of these considerations, both in terms of counterparty, auditing and regulation, lead us to consider VeraOne as one of the few secure solutions on the market. In addition to the various periodic inspections, controls and insurance mechanisms described above, the VeraOne token can benefit from an immediate right of exchange and redemption and a proven legal basis.
On the other side of the spectrum, VeraOne, it’s the expertise of a decade-long leader in selling physical gold that has entered the blockchain for its convenience, speed, and immutability. Because the main advantage of the blockchain is a permanent and tamper-proof register of the real estate register and the transaction history of the members.
In addition, annual audits by ALS (Australian Laboratory Services) and AMUAC (Association of AuCoffre User Members) confirm that 100% of the assets in circulation (from AuCoffre, VeraCash and VeraOne) are beautiful and in physical (and not in paper form) formats well maintained in safes at the Geneva ports.
How does the market react to your offers?
For the AuCoffre Group we achieved a turnover of 70 million euros in 2019. The clientele consisted of 90% French citizens (foreigners who mainly buy our VeraCash offer).
How do you see the crypto phenomenon (adoption, social change, etc.) “macro”?
We believe that cryptocurrencies are not intended to replace government currencies, but to make them easier to use and complement their mistakes. The future of cryptocurrencies therefore does not lie in their universalization, but in their specific application for specific purposes. They are intended to replace traditional markets (such as FOREX), in which a trustworthy third party was previously necessary.
To do this, the latter must first and foremost free themselves from their speculative nature, which distorts their purpose and distracts their use. The speculative bubble in late 2017 undermined many gamers’ trust in an innovative technology and diverted attention from the real innovations that the blockchain has brought. However, it has made it possible for us to understand that public trust in cryptocurrencies, and thus their introduction, will necessarily take place gradually and be linked to trust in what at first glance appears « immaterial ». The internet, anonymity and the ease of sharing information first appeared as a fad before being viewed as the third industrial revolution. This also applies to the blockchain.
What kind of digital asset is more likely to convince users than stable coins? Do these intangible assets have a counterpart to assets with stable values? Due to the liquidity of the already mature market, stablecoins are an exceptional new tool in the formation of stock exchange or reserve portfolios.
The choice of the underlying remains. Various experiences with stable coins based on public currencies (like Tether), even with benchmark crypto assets, have exposed certain risks, largely due to ambiguities in the way the counterparty is managing, and we’ve seen prices drop below theirs Underlying.
Out of conviction based on many years of experience and activity in this sector, we have decided to support VeraOne with physical gold. Gold is the epitome of fungible precious metal of timeless value and the ideal counterpart to a safe and stable medium of exchange. The VeraOne project, which goes far beyond the simple digitization of gold, thus brings with it a vision – that of exchange.
We therefore fully agree with the vision of Christine Lagarde, President of the ECB and former Managing Director of the IMF, who replied in March 2017: “Whether the value of Bitcoin is rising or falling, everyone is asking the same question: what exactly is it Potential of crypto assets? The technology behind these assets, including blockchain, is an exciting breakthrough that could help revolutionize areas other than finance. This could, for example, strengthen financial inclusion by providing new, low-cost payment methods for those who do not have a bank account, while empowering millions of people. in countries with low median incomes. « »
Crypto Portfolio Diversification: In the cryptocurrency market, a stable coin allows you to diversify your portfolio and reduce the overall risk of volatility of an Ethereum or Bitcoin wallet. While the cryptocurrency market is highly volatile, stable coins are now taking over the market with a capitalization dropping from $ 1.4 billion to $ 3 billion in less than 12 months. Since investors have no alternative to protect themselves from price fluctuations, it is important that a stable coin is created with a 100% guaranteed underlying asset.
Exchange rate currency: In contrast to the usual value transfer systems for individuals like Western Union with limited caps and exorbitant fees, but also for companies that operate in areas where currencies are not convertible or very volatile. VeraOne enables instant value transfers at reduced costs.
Hedging: A stable coin can also be used to hedge positions and protect against market volatility while waiting for the transaction.
& lt; & lt; & lt; Also read: 2020, year of Bitcoin recovery? & gt; & gt; & gt;
What is the most profitable cryptocurrency?
In our opinion, the most promising cryptocurrencies for 2020 and in the coming years are the Tezos (XTZ), the Stellar Lumens (XLM) and the ChainLink (LINK), whose prices have risen sharply in recent months.
Which currency should I buy right now?
The Best Currency Pairs – The Major:
- EURUSD (Euro – US Dollar)
- USDJPY (US dollar – Japanese yen)
- GBPUSD (British Pound – US Dollar)
- AUDUSD (Australian dollar – US dollar)
- USDCHF (US dollars – Swiss francs)
- USDCAD (US dollar – Canadian dollar)
How does the value of a cryptocurrency increase?
The number of people using the currency that trust leads to more or fewer people using the currency, which of course also adds to the value of the asset. What defines the value of a cryptocurrency is therefore also its popularity.
How to invest in Bitcoin in 2020
How do I invest in Bitcoin in 5 steps?
- Register with Bitcoin Trader using this link.
- Create an account on the broker platform.
- Fund your account.
- Select Bitcoin and click u201c buy u201d
- Open a Bitcoin trading position.
Does Bitcoin Pay?
For its first known price in 2010, a bitcoin was worth less than a dollar. And in early 2017, it traded for around $ 1,000 before skyrocketing towards the end of the year, posting an annual profitability of 1.303%! … The price of a Bitcoin will rise from almost USD 20,000 to USD 13,500 in two weeks.
What is the price of Bitcoin in January 2020?
|Bitcoin price in US dollars|
How do I invest in Bitcoin?
If you want to invest money in Bitcoin, you can either buy tokens (the coins) or through an online broker that offers cryptocurrency trading through Contract For Difference (CFDs), such as: B. eToro by example.
Which cryptocurrencies should be bought in 2020?
6 cryptocurrencies to buy for 2020 and beyond
- Bitcoin (BTC) First of all, I’m not going to be original, but rather efficient. …
- Basic Attention Token (BAT) The success of Basic Attention Token never fluctuates month after month. …
- Enjin Coin (ENJ) …
- Binance Coin (BNB) …
- Nexo (NEXO) …
- Ethereum (ETH)
Where can you buy cryptocurrency?
|Page? ˅||For whom ?||Payment method|
|Coinbase||Beginner||Credit card, transfers, cryptocurrency|
|eToro||Beginner||Credit card, bank transfer, PayPal …|
|octopus||Experienced||Credit card and transfers|
Which crypto should be invested?
Headliner and without any real surprise: Bitcoin. Historically, Bitcoin (BTC) is the first virtual currency created in 2008 in response to the world’s economic crisis. It remains the safest value for investment.