In today’s trend for the vigorous development of the global digital economy, the digitization based on blockchain technology has become a new highlight of competition. In order to seize more market share, the process of digitization is accelerating in various industries. As a strong support for the development of digital economy, the digital ecology plays an important role in enabling the development of the industries and improving the liquidity of assets. Eco-Coin could be applied to all scenarios of the whole ecosystem as the link and value carrier connecting all parties in the digital ecosystem.
Following the digital revolution, the impact of digitization on the financial market is particularly prominent. For example, the digital stock, which has aroused heated discussion in the industry recently, is digitized through blockchain technology and given the payment property. In other words, the digital stock, like currency, could be used to buy things in its ecosystem, both online and offline. SuperStock, the service platform of the digital stock from DaoTrust Limited, a trust company in Hong Kong (hereinafter referred to as DaoTrust), has recently successfully issued its first digital stock MFHD.
According to official statistics, SuperStock was entrusted by MFH’s shareholders to digitize the stock listed on the NASDAQ stock exchange under the symbol MFH through blockchain technology, and successfully issued MFHD, the digital stock that anchors its stock at 1:1. To put it simply, if a shareholder would like to issue a digital stock, he/she just entrusts DaoTrust and waits for the evaluation. After the evaluation, SuperStock can digitize the stock entrusted and issue the corresponding digital stock. The whole stock digitization process from seigniorage, circulation to redemption will be completed by DaoTrust, and the related audit and information disclosure will be carried out by a third-party company. The holders can make trade or redemption through SuperStock at any time.
What are the advantages of the digital stock over the traditional stock?
It is well known, as an important way of investment, the stock is an important asset allocation for many families and individuals, but for ordinary investors, due to the lack of sufficient financial knowledge reserves, it is difficult to make timely and accurate decisions in the unpredictable stock market. Especially in the case of information asymmetry, due to the limitation of trading time in the traditional stock market, the investors cannot operate stop-loss or positions-increasing in real time, so they may miss the best trading time. For the investors in the stock market, it is not so easy to diversify their investments in different stock markets. Not only do they need to establish different accounts, but the rules of each stock market are different. If they do not know enough about the local market, it will also lead to mistakes in investment decisions. The emergence of the digital stock has effectively solved these pain points. For instance, the digital stock MFHD breaks down the space-time barrier through blockchain technology, and the users who hold MFHD will no longer be restricted by the trading time of the traditional stock market, and can trade 24 hours a day.
The biggest difference between the digital stock and the traditional stock is that the former gives the stock the payment property, that is, the stock monetization. Let’s take Maotai (spirit) as an example and suppose we want to digitize the stock of Maotai. After 1: 1 anchoring to generate the corresponding digital stock, Moutai can be paid for either online or offline with its digital stock. And the Maotai’s digital stock can also be used as an Eco-Coin to circulate freely in the ecosystem that recognizes it, so that the investors can quickly switch asset types according to their own needs. For enterprises, the digital stock can be fully circulated in the capital market and consumption scenarios, and the sensitivity of consumers and investors to prices will also affect the liquidity of stocks, so that the market capitalization of enterprises is linked with their own business ability, which can effectively resist market fluctuations. In other words, the revenue of the enterprise is directly converted into capital to fight against the stock price, including hostile takeovers. Similarly, when the business is in the doldrums, we can also directly stimulate the consumption scenario through pricing and turn the capital directly into performance. In the environment of market volatility, the anti-risk ability of the digital stock will be more significant.
Rooting of MFHD Ecosystem
According to public information, the total volume of shares issued by MFHD in the first phase is 500,000 tokens, which will be issued in three batches in April, May and June 2020, with 150,000 tokens, 150,000 tokens and 200,000 tokens for each batch respectively. Shortly after the release of MFHD, it began to build an ecosystem with it as the carrier of value. At present, the global remittance platform Laipaya and BestTrade Exchange have announced the use of MFHD, which has become the member of their ecological alliance.
As the link of its ecosystem, MFHD carries ecological rights and interests, circulation attributes and value consensus. With the continuous expansion of the ecosystem, the usage scenarios for MFHD will also increase. At present, MFHD has landed on the remittance platforms and exchanges. When users choose to use MFHD as the settlement method in Laipaya, they can not only enjoy the corresponding discount for the handling fee, but directly remit the MFHD to the target currency to the designated account. On the BestTrade Exchange, MFHD can be used as one of the payment methods for project margin. In the future, with the increase of MFHD usage scenarios in different fields, its liquidity will continue to increase with the frequency of utilization, and the liquidity of all parties to the transaction will also be greatly improved. MFHD can not only be traded, but has the payment property, and the global users can use it as payment currency in its ecosystem. For example, the enterprises with physical objects join its ecosystem, and the use of MFHD can not only provide discounts to retail users, but save transaction costs for merchants.
For the moment, the world is building a new digital market based on blockchain technology. In order to promote the rapid development of the digital economy, in addition to technical support, blockchain also needs to empower and land the industry so as to truly create economic value. Just like the digital stock mentioned above, through the traditional stock empowered by blockchain technology, it is helping listed companies to improve liquidity and grow stronger, and the monetary attribute of the stock also enables the digital stock to be applied in more fields, helping more enterprises to link to the new era of digital economy.