Uniglo (GLO) is a new social currency that is currently in the second phase of its presale. The new decentralized project (DeFi) has been very busy since it began preselling in mid-July. As such, Uniglo is being closely observed and analyzed by market watchers who now say that the new DeFi project is prompting a shift in wealth allocation. Specifically, large volumes of Tether (USDT) and Circle (USDC) are being primed to buy GLO tokens soon.
But first, what is Uniglo?
Uniglo is a new project in DeFi that employs a unique approach to nurturing investments. Rather than purely relying on the speculative nature of cryptocurrencies, Uniglo will leverage a balance between growth speculation and wealth accumulation. The project will invest in assets ranging from digital currencies, rare non-fungible tokens (NFTs) to tangible collectibles such as high-end watches and rare whisky.
The project also introduces the Ultra-Burn Mechanism, which is an add-on to the regular token burn process involved with each buy and sell transaction on the Uniglo ecosystem. The Ultra-Burn Mechanism refers to purchasing GLO tokens from the secondary market before burning them out of existence. This dual-method for burning will ensure the limited supply of GLO tokens in the market, which will ultimately benefit longstanding token holders.
Tether was launched back in 2014 and is part of the larger iFinex ecosystem, which includes the Bitfinex cryptocurrency exchange. Tether is similar to Uniglo such that the former is also an asset-backed cryptocurrency. The difference lies in where the two cryptos are pegged. Tether is pegged to the US dollar and backed by its own reserves. This means that one USDT is typically maintained to be equivalent to $1.
Similar to Tether, Circle (USDC) also has a connection with the US dollar. Circle positions itself between traditional and crypto commerce by enabling the use of digital dollar stablecoins for payments and internet-based commerce. This means that USDC is also backed by its own reserves. In mid-July, the network released a detailed breakdown of the assets forming its reserves, which included $13.6 billion in cash and $42.1 billion in short-term US government bonds.
Large volumes of Tether (USDT) and Circle (USDC) being imminently allocated to Uniglo is one of the indications that the many investors have high expectations from the latter. Despite being a new player in DeFi, Uniglo is a rising star that could benefit early adopters in the coming months.
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