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Coffee Coin: Combining the Coffee Market with the Cryptocurrencies
Waking up to a cup of coffee is an idea of the past. Waking up to coffee coins is the new trend.
As of now, we all are very much familiar with stablecoins. These are the cryptocurrencies that are backed by any reserve asset. This asset can be a fiat currency or gold. Have you ever heard of a stablecoin that is backed by coffee beans? Well, this is a coffee coin for you.
Coffee coin (COF) is the first cryptocurrency that is backed by coffee stocks. Its prices are adjusted by the varying price of coffee beans in the physical market. The coffee beans are daily regulated by the market. In a similar equivalent manner, the COF token follows the commercial basis as that of coffee beans.
The token was launched by Minasul, Brazil's second-largest Arabica coffee cooperatives, in July. The interesting thing is that the farmers can exchange their 30% of the coffee harvest for coffee coins, and they can use these coins for buying other different goods.
How is COF safer compared to other cryptocurrencies?
We know that cryptos are highly volatile and hence, unstable. Their prices can vary drastically. But, the good thing regarding coffee coin is that it is connected to some actual asset, which makes it a safer investment option.
The coffee coin is linked to the market price of green coffee, which makes it less volatile compared to other existing cryptocurrencies.
The coffee coin can be traded for money or can be sold for coffee. The minimum number of coffee coins which equals 1,500 kg of green coffee (in case a person wants to sell COF for green coffee) are already determined by Minasul, the creator of Coffee coins.
Notably, the price of Coffee coins is also influenced by the demand among investors. It can be traded at StonoEx, which is a partner in the project launched by Minasul Cooperatives.
What is the market trend for the coffee coin?
After its launch in July 2021, it faced an appreciation of greater than 35%, which is indeed a good start for crypto. The most precise reason for this increase was the drop in the production of coffee in Brazil.
The bad weather hit the coffee crops, which led to damage of more than 30% of the coffee production and ultimately increased coffee prices. Being linked to the coffee beans, Coffee Coin also faced an increase in its price.
Additionally, it is linked to the demand and supply of investors in the secondary market. The price was being traded at $3.48 during the start of August 2021. With the drop in the price of coffee, the price of COF is also decreased a bit.
It is expected that the union of the coffee market with the world of cryptocurrencies can lead to the development of businesses in the future. Also, the currency can help the farmers getting a large share of profits.
From an investment point of view, COF is a safer currency. Its price will not depend on the speculations and, most importantly, cannot be manipulated by any famous personality, unlike Dogecoin and Bitcoin.