Safe-haven assets have seen a resurgence in demand over the past several months, as the late-stage bull market and excessive central bank easing are beginning to worry investors. Since September, the U.S. Federal Reserve has engaged in weekly “repo operations,” which are designed to inject liquidity into the repo markets, after repo rates soared during Fall 2019. This has fueled a renewed debate about whether these repo activities are just another name for quantitative easing.
While the U.S. economy continues to look somewhat stable right now, the coronavirus has been an emerging threat in 2020, as China’s economy has been brought to a standstill over the past month due to the outbreak.
These issues have driven extensive demand for safe-haven assets, such as precious metals, U.S. Treasuries and even Bitcoin.
Bitcoin started 2020 around the $7,200 level and has since broken through the $10,000 level, before seeing a slight pullback to just under five figures. The upcoming Bitcoin halving event in May, combined with bullish outlooks from top crypto firms, are driving prices higher. Coinbase recently stated in a blog post that Bitcoin is cementing its stake as “digital gold,” particularly as halving arrives.
One company that is focusing on capitalizing on the renewed precious metals and cryptocurrency demand boom is Sunstock, Inc. (OTC Pink: SSOK).
SSOK: Sacramento, CA Precious Metals Shop, Mom’s Silver, Will Accept Cryptocurrency
Sunstock is a cryptocurrency solutions and technologies company, which looks to bridge the gap between precious metals and retail payments using cryptocurrencies. The company’s “Triple 8” cryptocurrency tokens help leverage “precious metal investments while revolutionizing improving, and expanding the value of money, backed in precious metal assets,” according to the company.
Triple 8 token holders can spend their “diversified portfolio back in precious metals within a payment infrastructure familiar to that used in current banking platforms using fiat monies,” according to Sunstock. In short, the Triple 8 tokens are designed to be precious metal-back cryptocurrencies.
Part of Sunstock’s efforts to expand the ability of consumers purchasing precious metals with cryptocurrency is to open a wholly-owned retail store location called Mom’s Silver. The Sacramento, CA retail location is a first-of-its-kind within California and Sacramento County. Mom’s Silver plans to have a Bitcoin ATM inside for customers to withdraw and deposit Bitcoin into their crypto wallets.
Outside of sales, Mom’s Silver will also have a showroom and dedicated learning center to help educate customers and other merchants on its technology and other information on crypto, precious metals, etc. This provides Sunstock for another area of growth. Utilizing its retail location as a services and solutions hub, other merchants can learn about using Sunstock’s technology in their retail settings.
Mom’s Silver: Powered by the Sunstock-Karatbars International Partnership
Sunstock’s precious metals retail location will be made possible through the company’s partnership with world-class blockchain and crypto firm, Karatbars International.
Karatbars was founded in 2011 by Dr. Harald Seiz in Stuttgart, Germany. Dr. Seiz founded Karatbars International with the goal of “making gold available and transferable for many people,” by being able to offer transfer services of small gold denominations at an affordable price. Through Karatbar’s Karatpay app, digital gold can be sent to other users and institutions that are also registered on the app.
The K-Merchant program is a payment gateway that allows merchants to accept cryptocurrency payments. Currently, the platform accepts three cryptos for payments: Bitcoin, Ethereum, and Karatbar’s KaratGold Coin.
Sunstock will be utilizing Karatbar International’s K-Merchant program through Karatbar’s crypto ATM. Furthermore, the partnership is set to work on blockchain development beginning during the second quarter of 2020.
Sunstock’s management team is scheduled to appear on the TV cryptocurrency business show, “Exploring The Block,” on February 25, 2020. During the interview, management is likely to provide further insight and updates surrounding its retail store and partnership with Karatbars.
Sunstock Pays Off All Its Outstanding Convertible Debt
Another big development at Sunstock is the company’s recent announcement that it has paid off all of its remaining convertible debt outstanding. In January 2020, the company was able to reach an agreement with its four convertible noteholders and pay off its remaining balances. Sunstock’s Form 8-K filing with the SEC provides further information on its agreements with the noteholders.
This is a big deal for Sunstock and shareholders because it stops dilution of the common stock. Sunstock CEO, Jason Chang, notes, “the company paid-in-full its entire outstanding convertible notes. Paying off the company’s debt makes SSOK more financially stable as we continue to grow our precious metal asset-backed digital currency and our retail location, Mom’s Silver.”
Overall, Sunstock continues to secure its financial stability, while beginning to execute its growth plans for Mom’s Silver and its Triple 8 asset-backed cryptocurrency. The Karatbars International partnership allows Sunstock to leverage Karatbar’s blockchain and development technology. The two companies have a very similar mission in utilizing cryptocurrency to create transactional and asset-backed precious metal solutions. Their partnership certainly makes sense for shareholders and provides a shining outlook for Sunstock.
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