What Is a Poundtoken? | GBPT Review
Aug 07, 20225 min read
What Is a Stablecoin?
The first stablecoin was launched in 2014 and it was BitUSD on the BitShares blockchain. The main aim was to increase the mass adoption of cryptocurrencies. They created a BTS asset, with its value pegged to the BitShares blockchain token.
Unluckily, BitUSD lost its peg to the dollar in 2018 and never recovered. Many stablecoins have launched into the crypto scene with fanfare, and fizzled out quietly shortly after. Terra UST (which managed to wipe out over $200 billion of investors' wealth) is the latest and largest in a long list of failed stablecoin projects. The lack of regulation, and the inability to ensure that the coins were fully backed by reserves, led to their ultimate demise.
The primary fallout of the massive UST crash was a strident call for increased regulation of the stablecoin crypto industry, especially to confirm reserves. Here’s where GBPT comes in.
In light of the numerous failed stablecoin projects and calls for increased regulation, the project developers focused on compliance with strict Isle of Man and British financial rules while maintaining the main spirit of the stablecoin concept — increased usage through reduced volatility.
To further reassure investors, KPMG audits the project and releases monthly proof of reserves as evidence that the 100 percent pound sterling–backing is still in place.
Established on the Ethereum blockchain, GBPT will offer real-time global settlements without regard to borders or working hours. Blockchain technology promotes the poundtoken’s functionality as a speedy, transparent, safe and borderless value transfer asset.
What Is $GBPT?
$GBPT is a stablecoin backed by the Great British Pound Sterling (GBP) held in bank accounts. This means that GBPT, also known as “poundtoken,” can be converted 1:1 ratio with the pound sterling.
The pound token was launched by Blackfridge SC Ltd, a fintech company backed by British financial regulations. The initial introduction of the stablecoin was on the Ethereum blockchain, but the team aims to bridge to various blockchains. The stablecoin can be bought and traded on Gate.io, Uniswap, and Bittrex. Blackfridge’s road map includes plans on listening to a stablecoin on other prominent exchanges, as well.
The Terra UST stablecoin collapse shocked many investors, as they simply lost their funds, which obviously frightened the crypto space and questioned “stable” stablecoins’ nature. Blackfridge wants to revive public confidence by guaranteeing a stablecoin backed by substantial reserves of the pound sterling. Some stablecoins are not backed 100% percent by fiat currency. That’s ensured by GBPT monthly attestations provided by such a reputable company as KPMG.
- the current poundtoken price today is $1.21 USD
- with a 24-hour trading volume of $116,288 USD
- the current CoinMarketCap ranking is #4271
- self reported circulating supply 2,452,619.08 GBPT
- max supply 2,452,619
- total supply 2,452,619
$GBPT Main Features
Stablecoins are not new to the crypto industry but the $GBPT has a set of characteristics that offers truly tailored customer benefits, making the project draw attention. Here they are:
- KPMG Audited
The Terra UST stablecoin crash matters, so Blackfridge made everything that is possible for user confidence and peace of mind by partnering with the Isle of Man's Financial Services Authority and having monthly audits with the auditing firm KPMG.
KPMG's function is to verify that GBPT is 100 percent backed by the GBP by issuing proof-of-reserve statements monthly. Such transparency is not that common, and it's a testimony of the company's credibility.
- 100 % Backed by GBP
Unlike most stablecoins pegged to crypto or U.S. dollars, the GBPT is tied to the mighty pound sterling, which is a major world currency. GBP is one of the most traded currencies in the world. Every issued poundtoken is covered 100 percent by fiat GBP in bank reserves.
- Solid Financial Regulation
The Isle of Man's Financial Services Authority governs the GBPT and the Blackfridge. Its financial regulators are supported and licensed by the British financial regulatory regime.
All the transactions are encrypted, immutable, and secure, as a poundtoken is built on the Ethereum blockchain and uses ERC20 smart contracts.
$GBPT and Other Stablecoins
GBPT vs. USDT
USDT, known as Tether, is the biggest project among stablecoins out there. The USDT pegged to the U.S. dollar has struggled against accusations that it has less fiat backing than it claims. Also, it lost its peg to the dollar, trading at less than a dollar for a while.
These issues question the regulation level over the most popular stablecoin. However, Tether calls itself to be entirely regulated, citing registration with FinCEN as proof, but most crypto industry experts can’t agree. The matter is that FinCEN is not actively involved in ensuring that a company providing financial services adheres to a set of rules.
As for the GBPT, it has to operate based on the rules set by regulatory authorities.
USDT and GBPT have similarities — they are both centralized.
GBPT vs. USDC
USDC is considered to be second to the USDT. It was launched in 2018 by the Centre Consortium. The USDC is pegged to the U.S. dollar and has to obey audit and U.S. money transmission requirements. All this gained this coin a reputation as a more credible and secure stablecoin, although not as widely used as USDT.
GBPT vs. TUSD
TrueUSD (or TUSD) is a fully collateralized stablecoin backed by the U.S. dollar. The GBPT is in many ways similar to the TUSD on the regulatory side, as they’re both subjected to regular audits and compliant with state regulators. The GBPT is audited by KPMG, and the TUSD by the firm Armanino LLP.
The TUSD and the GPBT aren’t decentralized, and it’s under the control of TrueCoin LLC, the company behind the TrustToken Platform. The TUSD is also fully backed by its equivalent U.S. dollar, with every TUSD token having its equivalent dollar value stored in the bank to back it.
First, Poundtoken, or GBPT, is created for stability and to return trust in the stablecoin market using accurate regulatory policies and regular audits. It wants to be a benchmark for stablecoins used in the global payment system smoothly.
Thus, it acts as a stable store of value and an exchange medium while maintaining transparency, safety, and swift transaction processing.