The current world is gripping under the wrath of the Corona Virus. Economies have weakened and consumer confidence is at an all-time low. But when we talk about the crypto market, innovative ideas seem to be the mantra. And it is really surprising that the developers would actually use this adverse condition to turn into an opportunity.
Cryptocurrency developers have created a digital coin that lets traders bet on the pandemic. The basis of betting is how many people will get infected or will die of it. The Covid Coin or the Corona Coin is based on the below-given working mechanism:
- It is an ERC-20 compliant non-mintable deflationary token that tracks the number affected.
- Whenever the news of a death of infected comes in, it is stored into a blockchain database and will remain there till the last Ethereum is shut down.
- The total supply of the coin will be based on the world population. The supply of the tokens will reduce every two days. This is directly proportional to the rate of new cases. The price movements also depend on the number of cases. The higher the deaths the higher the price movement.
- The token holders can acquire more tokens by competing against each other in fun games and winning more tokens.
The concept behind the coin may sound fiendish and sadistic but in reality the coin is beneficial because it supports the relief efforts of COVID-19. The organization has decided to reserve 1 billion COVID tokens for charity alone. Every week these tokens will be converted into cash or currency which will in turn donate essential supplies to hospitals as well as mark a certain amount for Red Cross contributions. It also has decided to distributed masks to essential workers.
The team comprises of seven developers and more are going to be added on board. The true identity of the ideators has not been given but a majority of them belonged to Europe. The coronaCoin blockchain documents the spread of the virus. It can then be purchased and sold on online exchanges like Saturn.
While it is true that the concept is seen as flavorless and crude. But at least the funds are parked for donation purposes which is the only thing positive about the entire concept.
Image Source – Politico