Two Prime Blog

A Stable Token that Can Grow: Defining the Hybrid Stablecoin

Safely park your assets or make a high-risk investment in a highly volatile instrument? This is a dilemma that every crypto investor faces. In crypto markets, you often have to choose between holding Bitcoin (hoping it will grow significantly), or USDT (relying on its price stability), and occasionally engage in staking and lending.

While it is smart to have both types of assets in your portfolio, imagine having an asset that serves both purposes: preserving your wealth while growing it without undue risk.

In this article we show that this golden mean exists: it’s FF1, a hybrid stablecoin that combines downside protection with growth potential.

First, let’s take a look at the essence of stablecoins

In the extremely volatile crypto market, stablecoins (which entered the market in 2014 with the launch of USDT) are actively used by investors to mitigate risks in their portfolio, without having to convert back to fiat currencies.

Stablecoins are tokens backed by an asset, a basket of assets, or another stability mechanism that supports the token price, making sure that it doesn’t fall below its collateralized floor – making them relatively stable. There are hundreds of stablecoins: fiat-collateralized, commodity-collateralized, crypto-collateralized, uncollateralized (algorithmic). The leading examples have mostly served their purpose, maintaining a constant price in various market conditions.

As the crypto market matures, the need emerges for a better store of value – one that will not only help you to preserve your wealth, but also to multiply it without having to risk everything. The most popular cryptos, including BTC and ETH, do offer growth opportunities – but offer no protection from price collapse and mostly depend on supply-demand market dynamics for their value.

Diversifying risk and combining different asset classes in your portfolio tackles the issue, but building a comprehensive portfolio can be challenging without professional asset management skills.

Introducing FF1: A Hybrid Stablecoin 

To solve these challenges and answer the demands of the growing market, Two Prime introduces FF1 – a hybrid stablecoin aimed at offering both stability and growth to investors. 

Two Prime's FF1 token combines the features of a close-ended fund, asset-backed token, and a secure store of value. Supported by a treasury reserve of blockchain industry assets picked by our team of investment professionals, FF1 is a low-risk instrument that offers price stability (just like in a stablecoin, assets support a price threshold).

At the same time, the growth mechanism behind FF1 is what makes it very different from other crypto assets, including stablecoins.Unlike the majority of cryptocurrencies, FF1 doesn’t use the pump-and-dump schemes to grow in price. Low volatility and steady growth is ensured by Continuous Token Offering (CTO) distribution mechanism that responds to market interest and releases additional tokens into circulation in response to true demand. FF1 has a finite supply so growth in demand causes the price to respond in kind. 

The figures speak for themselves: since the launch in early March 2020, FF1 has seen a +20% price increase, never falling below the original listing price of $3.00 on Bithumb. Importantly, the team at Two Prime has never sold the token at massive discounts to private buyers beneath this $3.00 price either.

As a result, investors get the best of both worlds in a single token: a risk-managed set of investment opportunities (see report on Treasury holding here) that is as safe as stablecoins and as promising as Bitcoin. By adding FF1 to your portfolio, you can professionally diversify and gain access to elite opportunities while protecting what you already have. All you need is FF1.

Read on our blog: 
How to get FF1 
FF1 vs BTC vs USDT vs altcoins: comparative analysis
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