Sumcoin is the nativetoke for the Sumcoin network. The network is a cryptographic blockchain and the world’s first cryptographic Index. The blockchain network uses a proof-of-work algorithm to unlock Sumcoins.
This coin is unique since it is an aggregation of the top 100 coins at any moment. The “SUM” of coins, as that is the meaning, tracks all coins from more than 600 data points, aggregates them, and identifies the top 100 coins as per the global market cap. The blockchain protocol then uses an algorithm based on the market fluctuation to generate the “SUM” price.
Sumcoin enables users to hold the “SUM” of the market’s top 100 coins in one coin. The digital token offers simplicity, speed, and security to its holder. It is ideal for the traders who want maximum exposure to the crypto market yet may only want to hold one coin for simplicity. Here are some of the benefits of wrapped Sumcoin.
Lowers risk factors
The value of the coin is spread across 100 coins. Therefore, the coin has low volatility. If one coin plummets in the market, the risk is spread through the remaining 99 tokens. The loss will be minimal compared to when dealing with a single coin.
Sumcoin also encourages diversification
since users can invest 100 coins at a time. Diversification increases the chances of making a profit.
You will also save time with Sumcoin
Without Sumcoin, you would need to analyze many tokens to place orders with many coins. Thanks to this coin, it allows you to focus on just one coin. You can now save the time and resources required for intensive trade analysis.
As good as this token may sound to traders, one-factor use to hinder its adoption, lack of blockchain interoperability. The coin is created on the Sumcoin blockchain network and cannot be directly hosted in any other blockchain network such as Binance Smart Chain, Ethereum, and Bitcoin network. However, as more opportunities keep increasing in other blockchains ecosystems, especially DeFi, the need for cross-chain usage increased. Noticing this problem, WSUM created Wrapped Sumcoins – tokenized versions of this coin to enable its hosting on foreign blockchains. It created two types of wrapped coins – Etherium based wrapped Sumcoin (WSUM) and Binance based wrapped Sumcoin (WSBC).
Blockchains operate in isolation. One blockchain cannot communicate with another blockchain network. For example, Bitcoin blockchain cannot communicate with Ethereum or Binance Blockchain. Therefore, it is impossible to directly use an asset designed for one blockchain network in a foreign network. Token wrapping solves the problem by creating a tokenized version of a given digital coin. Therefore, it enables the use of these tokens on foreign networks.
By creating Ethereum-based wrapped Sumcoin and Binance-based wrapped Sumcoin, WSUM Network made it possible to use Sumcoin on Binance and Ethereum blockchains. Users of this coin can now hold their Sumcoin while leveraging the DeFi ecosystem through WSUM and WSBC. Otherwise, they would have to sell their Sumcoin assets and purchase DeFi assets to enjoy the privilege of participating in their foreign blockchain ecosystems. Thanks to the good work by WSUM Network, Binance, and ethereum blockchain users can enjoy more liquidity. Additionally, Sumcoin can boast better utility, which fulfills the expectation and requirements of the cryptocurrency community. Some of the DeFi products that wrapped Sumcoin can enjoy include Yield farming.
The process of creating and acquiring WSUM wrapped tokens is seamless and trustworthy. The blockchain protocol uses smart contracts to create authentic wrapped assets. As a token holder, you can access the wrapping service contract. You are required to enter few details such as the wrapped token native chain and the receiver’s address before depositing the original token.
Wrapped tokens are issued autonomously. Therefore, the process is more secure – no chance of fraud. Additionally, smart contracts guarantee transparency since the codes are displayed publicly. Anyone can view and edit the notes to ensure that no one manipulates them. Blockchain network also ensures that the entire token wrapping process is immutable.
Pushing the Boundaries
WSUM Network is extending the use case of wrapped Sumcoin to Non-fungible tokens (NFTs) and Decentralized exchanges (DEXs). The blockchain-based protocol is launching a platform where users can buy NFTs and pay with wrapped Sumcoin.
Non-fungible tokens (NFTs) are the latest buzz in the blockchain and crypto industry. Since the craze began in March 2021, we have seen deals worth millions of dollars registered in this cryptocurrency niche. NFTs are unique digital tokens that reflect ownership of non-fungible assets (physical or virtual). These tokens have huge application potential. In the gaming business, NFTs are already utilized to represent in-game content. Axie Infinity, F1 Delta Time, Sorare, CryptoKitties, and Evolution Land are some of the most popular NFT games. The tokens are used in a variety of virtual assets, including music, virtual trading cards, video clips, digital photographs, and virtual real estate. The latest application of NFTs involves movies and television shows.
Enabling the purchase of NFTs using wrapped Sumcoin is a breakthrough innovation for digital asset holders. They can now trade these trendy assets without having to sell their least volatile digital assets.
WSUM Network is also launching a WSUM.io, a next-level liquidity protocol backed by a Proactive Market Maker (PMM) algorithm. The protocol can proactively adjust parameters such as asset ratio and curve slopes to anticipate market conditions. The protocol’s contract-filled liquidity sets it at the same level as centralized exchanges (CEXs). WSUM provides a low barrier-to-entry, pain-free token issuance mechanism when dealing with long-tail assets.
WSUM has now stretched the utility of Sumcoin to NFTs platforms and WSUM.io liquidity protocol. The holders of the first indexing coin now have every reason to smile since they can take part in buying and selling NFTs while holding their low volatile tokens. They can also enjoy the interaction on the WSUM.io liquidity protocol through the wrapped coin. WSUM Network remains focused on meeting the evolving needs of cryptocurrency users through environmentally friendly innovations.