Frequently asked questions:
What Is Anchor?
Anchor is a stablecoin cryptocurrency pegged to a non-flationary financial index that reflects the long-term growth of the global economy, via a proprietary algorithm called the Monetary Measurement Unit (MMU).
Anchor aims to preserve and enhance the value of investor holdings. The vision of Anchor is to provide individuals, businesses, organizations, and whole economies with a reliable, predictable, and stable store of value and measure that is resistant to economic volatility, inflation, and market speculation.
Anchor is a stable digital currency pegged to the Monetary Measurement Unit (MMU), a scientific algorithm that provides the most accurate available measure of the global economic growth by calculating international financial data from more than 190 countries.
What is the Anchor aiming to achieve?
Anchor is designed to protect, preserve, and enhance the holdings of individuals, businesses, and organizations over time with a transparent, stable, and predictable financial standard and store of value.
Fiat currencies are consistently depreciating in value due to inflation. Cryptocurrencies are volatile and not a reliable option for conservative portfolio diversification. Most stablecoins are pegged to real world assets that are finite and susceptible to the same market fluctuations as fiat currencies and commodities.
How can individuals, businesses, and organizations rest assured that the monetary value and purchasing power they have today won’t erode in the future due to recessions, regional shocks, international relations, hyperinflations, and a plethora of other dynamic economic factors?
The market is missing a monetary tool that will preserve and enhance value while protecting against inflation, regional shocks, and politically-biased influences.
Why is an algorithm better than real world-asset backed stablecoins?
There are currently no active non-collateralized stablecoins. Fiat-collateralized stablecoins are very useful because holders can redeem them 1:1 for dollars from the issuing organization at no additional cost.
Real world assets, such as fiat currencies and commodities are all susceptible to market fluctuation, volatility, and depreciation of value. Anchor’s algorithm, the MMU, is an objective measure of the real value of the global GDP. Intrinsically stable and protected by six stabilizing mechanisms, Anchor’s algorithm preserves and steadily increases the value of token users’ holdings.
Anchor is disrupting the current monetary paradigm and introducing a new financial standard that preserves and enhances value, while hedging against volatility. Anchor is not collateralized because once you are collateralized then you are limited and you cannot be truly scalable.
How is Anchor pegged to the stable long-term growth of the global economy?
The Monetary Measurement Unit (MMU) is Anchor’s algorithmic peg of value that reflects the sustainable, long-term trend of global economic growth while protecting against inflation, regional shocks, politically-biased influences, and market volatility. Any currency, both fiat and crypto, can anchor their value to the MMU to ensure stability and steady, long-term growth.
What Is the Monetary Measurement Unit (MMU)?
The MMU is a financial index reflecting the real growth of the global economy, calculated through a proprietary formula developed by Anchor’s MMU Team using macroeconomic and financial indicators of all the world’s countries.
MMU consists of two independent variables:
- the FX Indicator, which represents the (extent of) participation of most relevant fiat currencies in global economy, adjusted by participation of the corresponding countries in the real growth of global GDP, and;
- the MMU Premium, which consists of the adjusted real risk-free rates derived from the sovereign bond yields of select countries, and their average inflation rates adjusted in accordance with their participation in the real growth of global GDP.
What data is the Monetary Measurement Unit (MMU) based on?
The Monetary Measurement Unit (MMU) is an algorithm based on the growth of the global economy with validated data from the International Monetary Fund (IMF), the World Bank, and other official sources of more than 190 countries over the last 25 years. The MMU is further stabilized with FX indicators from a basket of 8 currencies, and premium sovereign bond yields from 10 of the world’s strongest economies.
How Does Anchor Benefit from Pegging to the MMU?
Pegging the Anchor to the MMU, which is the most accurate representation of the real growth of the global economy, that is steadily appreciating over time, makes the Anchor resilient to market volatility and inflation, which are the key dynamics that affect all currencies that are currently in use.
How often is the MMU updated?
The initial value of the MMU will be in public use after its official launch and will be recalculated on a daily basis and continuously validated by carefully selected Validators with an international reputation of reliability and transparency, such as the International Monetary Fund (IMF). Over time, the MMU algorithm will be further developed and perfected to increase the precision of calculations.
What Layers of Protection Does Anchor Have to Ensure Long Term Sustainability?
Anchor’s stability rests on a safety net of six pillars that protect it against inflation, devaluation, and volatility.
The Two-Token Model
In case of fluctuations of Anchor Token’s value (mostly in case of a downward trend), our utility token, the Dock Token, comes into play. The Dock Token is the system’s stabilization token that is issued in order to back the Anchor token and keep its value stable.
The Global Economy Pillar
The price of the Anchor Token is determined by the MMU algorithm. This algorithm is based on the stable and predictable growth of the global economy.
The Daily Adjustment Pillar
The MMU is adjusted daily based on the FX indicator, which represents the extent of participation of the most relevant fiat currencies in the global economy, adjusted for the participation of the corresponding countries in the real growth of global GDP, and the MMU Premium, which consists of the adjusted real risk-free rates, derived from the sovereign bond yields of select countries and their average inflation rates, adjusted in accordance with their participation in the real growth of the global GDP.
The Distribution Pillar
The capital in cryptocurrency and fiat that enters the Anchor System is used to purchase a range of stable capital assets, such as sovereign debt. As a result, this brings stability and trust to the Anchor ecosystem.
The Re-Distribution Pillar
The treasury bonds and assets acquired via the Distribution Pillar generate interest that the system receives periodically. This interest is then re-invested into more such assets without issuing new Anchor Tokens, which ensures greater token stability, and acts as a defense against inflation and devaluation.
The Algorithm Pillar
When inflation occurs, the system uses a validated formula to re-adjust the value accordingly to keep the Anchor’s price stable.
How will Anchor Rebuild trust in Crypto Markets?
The cryptocurrency landscape had lost nearly 200 billion dollars in 2018 due to its high volatility. As a result, people lost faith in it as a store of value. Contrary to most offers in the crypto-space, the Anchor offers a non-flationary, stable currency that can only appreciate over time.
Stablecoins have attempted to fill this void, but have fallen short. Many stablecoins are pegged to fiat currencies, which depreciate over time, or to other cryptocurrencies, which continue to be extremely volatile.
Anchor comes in as a transparent and predictable currency and financial standard that all other currencies can use as a stable peg of value.
What Is the Anchor Two-Token System Comprised Of?
The Anchor System is comprised of the Anchor Token and the Dock Token.
What is the Anchor Token?
The Anchor Token is the system’s main currency and payment token, pegged to the most accurate representation of the global economy’s growth – the Monetary Measurement Unit (MMU).
What is the Dock Token?
The Dock Token is a utility token, minted solely as a corrective and stabilizing measure against downward market trends. Dock Tokens can only be purchased during Presale. All Dock Tokens will be fully redeemable with Anchor Tokens after Presale ends.
Who will benefit from being an early adopter of Anchor?
Purchasing Anchor’s tokens has several key benefits. The Anchor cryptocurrency offers transparency, stability, and trust. It is secure, easy to understand, and resilient to crypto-market volatility. The Anchor preserves the value of your holdings over time and ensures that whatever you have earned during your lifetime does not lose value.
As a dependable hedge against crypto volatility and inflation, Anchor offers a solution to investors, traders, banks, hedge funds, and other investment institutions.
- Crypto Traders: Traders who are highly involved in the crypto ecosystem will benefit from investment in the Anchor stablecoin as a way to safeguard their value. Offering the crypto market a transparent and scalable alternative to Tether (USDT), and other stablecoins.
- Blockchain Companies: Blockchain companies that conducted raises in ETH or other cryptocurrencies can invest in Anchor’s system in order to guard against market fluctuations. By investing in Anchor, these projects can preserve the funds needed to continue to develop their products and platforms on their proposed timelines without fear of losses due to crypto market volatility.
- Traditional and Retail Investors: Beyond the crypto economy, Anchor offers a stable store of value not found in any other market. The nature of fiat currencies, such as USD, is that they depreciate in value over time due to inflation. Because Anchor’s value is derived from an algorithm that reflects the growth of the global economy, Anchor will be the first truly stable currency and store of value that will only appreciate in value regardless of daily market fluctuations and shocks due to political instability or natural disasters.
- Strategic Partners: Potential partners, such as those involved with crypto loans, real-time paychecks, and affiliate programs, will benefit from special discounts, in order to incentivize early participation.
During Presale, you can only purchase Dock Tokens as a Validator or Investor in exchange for fiat or several other crypto currencies, and exchange them for Anchor Tokens upon launch at a highly preferential rate.
After the Anchor System is launched, all account holders will be able to purchase Dock Tokens in the Contraction Phase, in exchange for Anchor tokens.
In the Expansion Phase, account holders will be able to redeem those Dock Tokens for Anchor Tokens at preferential rates.
What are the Contraction and Expansion Phases?
The tokenomics of the Anchor system are designed to keep the value of the Anchor Token pegged to the Monetary Measurement Unit (MMU) by algorithmically expanding and contracting the amount of tokens in circulation. If all previous buffers fail to prevent fluctuations of the Anchor Token’s value (mostly in case of a downward trend), our utility token, the Dock Token, comes into play. Dock Token is the system’s stabilization token that is issued in order to back the Anchor token and keep its value stable.
When global economic and market events cause the Anchor Token’s value to fall below the value of the MMU, the system enters the contraction phase during which time an open auction with a reward system is initiated for Anchor Token holders to incentivize them to exchange their Anchor Tokens for Dock Tokens in order to reduce the volume of Anchor Tokens in circulation and peg the value back to the MMU.
When the exchange rate for the Anchor Token rises above the value of the MMU, an expansion phase is initiated during which Dock Token owners can convert their tokens back to Anchor Tokens at a preferential rate. If the value of the Anchor has not been stabilized after the conversion of all available Dock Tokens, additional Anchor Tokens are airdropped to holders until Anchor’s value is once more aligned with the MMU.
How often will contraction/expansion phases occur?
Contraction and expansion phases are not planned as they are direct responses to real, dynamic market fluctuations. Our tokenomics model takes into account both unfavorable and favorable market conditions to ensure stability and that the Anchor Token remains pegged to the MMU.
Sometimes, the prices of Anchor Tokens could be different across various exchanges. How does your stability mechanism calculate the value of the Anchor Token?
The desired Price of Anchor is the value of the MMU. When the price of Anchor moves away from the value of the MMU, a contraction or expansion phase is triggered to align the value of Anchor back to the MMU.
Other exchanges might list a different price of the Anchor relative to the value of the MMU, but even if this affects the price on the Anchor platform for a brief period, the contraction/expansion mechanism will immediately align it with the MMU. This is meant to discourage all attempts of short-term speculation, however, a testing phase in real-world conditions is needed to see and adjust the formulas and mechanisms. For this purpose, we have the grace period for Validators/Investors.
As part of our longer term strategy, Anchor plans to develop its own Exchange, where Anchor can be purchased directly at the price aligned with the current value of the MMU.
How Can I Purchase Tokens in Presale?
In Presale, we will be offering Dock Tokens only to Validators and Investors. Please visit the Token Sale page on our website and read through our current Presale offer. Click on the Register Your Interest or Contact Us button and fill in the registration form to get into the Validator or Investor queue in Presale.
For any questions, feel free to reach out to us at [email protected].
Who Can Purchase Tokens in Presale?
Validators and Investors.
What are Validators?
There are currently 21 Validator slots available in the Anchor System. 20 Validator slots will be allocated to highly reputable entities (e.g. financial institutions, auditors, banks, insurance companies, universities, investment funds, etc.), while the 21st slot is reserved for the Anchor Company (Anchor AG).
The Validators are the key to decentralized governance of the Anchor System. These entities will form a decentralized entity gathered around the system’s core information whose main task will be to guarantee transparency of the system’s actions and make decisions on token issuance and other issues relevant to the system.
How Do You Become a Validator?
Being a Validator is a time-intensive technical responsibility that requires a mature operational structure with professional integrity and extensive experience in running, monitoring, managing and maintaining data center infrastructure and its security.
The Anchor System’s Validator offers will be extended to reputable entities coming from different countries, as well as to global/transnational or multinational organizations that possess a high-profile/high reputation.
Candidates for the Validator role must meet certain prerequisites in terms of expertise, reputation and capacity to successfully perform validation activities in the Anchor System, for which they are rewarded with four levels of incentivization. System Validators will be offered a 33% discount for Dock Tokens, for a minimum purchase of $2 million.
What kind of investors does Anchor prefer?
Anchor invites companies and individuals from all industries to invest in Anchor in Presale, by registering interest and entering the Presale Queue. In this phase of the project, Anchor prefers reputable investors and operational teams who will embrace the vision of the Anchor Project and will contribute to its validation, adoption, stability and success.
Does Anchor have an auditor? How will Anchor safeguard investor money?
Transparency and regular auditing represent an integral part of Anchor’s business policy. Anchor takes compliance and safeguarding investors’ money very seriously and are in the process of hiring an experienced CFO, as well as selecting a Board of Directors to oversee investors’ funds. One of the checks and balances we will require include a dual signature authorization for bank transactions, among other criteria to ensure investors’ money is safeguarded.
When is Anchor’s token presale and when will Anchor be available on exchanges?
Anchor’s Presale is pending the approval of the Swiss Financial Market Supervisory Authority (FINMA). since Anchor AG is incorporated in Switzerland.
Once Anchor receives FINMA’s approval, the Presale will start, offering Anchor’s stability token, the Dock Token, at a 33% discount for buyers against the redemption value of Anchor Tokens, the system’s main currency, on their release date. The minimum presale purchase is $50,000 and will be available to accredited investors.
Only during the token presale phase will Docks be available for early adopters to purchase at a 33% discount against the redemption value of Anchors in advance of launching on global crypto exchanges. The presale phase will last for 60 days from its inception.
Anchor is planning to launch on global crypto exchanges in during 2019.
*Please note, neither ANCT nor DOCT represent a debt, derivative or equity claim against Anchor AG, or any legal entity.
Will the Anchor Build a Trading Platform?
Our primary goal at this time is to be listed on prominent crypto exchanges. We are aiming to create our own trading platform in the future when we are firmly positioned on the market.