Why is the commodity-class Cuprum Coin different from any other digital asset on the crypto-market.

The answer might sound rather simple – because of the post-purchase characteristics that differentiate the product from its competitors.

What is common to all (crypto)currencies?

All cryptocurrencies, like other currencies, derive their value from the demand/supply ratio, or in other words, cryptocurrency value fluctuations are the result of demand fluctuations, which also depend on (sometimes not elastic) supply.  As many investors are focused only on speculative trading driven by price and volatility, they often forget a simple equation – less cryptocurrency demand means, less the real value is, and vice versa, of course.

Asset-backed cryptocurrencies

In speculative trading, no one can predict where the price will go, and the asset-backed cryptocurrencies collateralized with a real-world, tangible asset has brought a sort of certainty because of safeguarded value propositions. They also brought competitive pressure from new issuers. Precious metal or fiat-equivalent backed coins protect traders and investors during volatile markets. For example, in a bear market, traders can protect their position by flipping their cryptocurrencies to an asset-backed coin, without leaving crypto blockchain-enabled eco-system.

Obviously, precious metals backed cryptocurrencies, in particular the ones backed with gold, have raised special attention as there is no new chemical element to challenge gold as an underlying asset.

When it comes to supply, because asset-backed coins usually have a fixed amount of assets backing them, there can’t be many of them in circulation. As such, they allow a higher degree of compliance. They also permit the fractionalization of ownership of valuable assets, so that more investors could own portions of the same asset.

What about demand?

Precious metals and fiat currencies are both traded on the market and are exposed to market volatility. At times of less demand, the price will go down, consequently moving downward the price of cryptocurrency. 

All this together remains somehow unclear what the fundamental value is of the asset-backed cryptocurrencies.

The demand for Cuprum Coin`s underlying asset makes this coin as a rather unique and exceptional on the market.

In May 2023. Cuprum Coin and Meteor Minerals Group, a producer of the highest quality nano copper powder from its own copper mines, signed a strategic partnership (more about partnership and about a specific elastic supply the parties arranged, read in our related article Curpum Coin & Meteor Minerals Group strategic partnership –-out of many reasons the best fit for both parties).

When considering the demand for the Cuprum coin, we need to examine two basic questions: what is the primary purpose of the nano-copper powder and how the Cuprum coin derives its value?

Nano copper in the form of powder is highly demanded, unlike all other assets backing cryptocurrencies, in the new industries or industries of the future. It is also at present of great interest in nano/submicron and several fields of chemistry and material science. This means demand for nano-copper powder will be there uncompromised for a long time.

On the other hand, this material is not traded on the market and is not exposed to volatility risk, which means that the demand (equals to value) for Cuprum Coin is inherited and comes only from the demand for its underlying asset.

In conclusion, with a stable demand for its asset, the Cuprum coin represents a safe store of value, maintained for a long, long time.

Aerospace & military industry

Copper-Tungsten (Cu-W) or Tungsten-Copper (W-Cu) is a composite of copper and tungsten, with a percentage variable. Cu and W are almost insoluble with each other. Cu-W combines the properties of each component, such as high electrical and thermal conductivity, low thermal expansion, excellent mechanical properties, wear resistance, and arc-erosion resistance.

The recently developed submicron and nanostructured W–Cu composites exhibit superior performance compared to their conventional coarse-grained counterparts. They should expand the applications of this group of materials further. W–Cu composites are applied in aerospace fields, such as parts used in rocket and missile nozzles.  Namely, W–Cu composites can bear high-temperature loadings where other materials generally lose function.

However, in the aerospace and military industries, high purity ultrafine copper powder cannot be used if it is not nano-sized below 1 μm (micro meter), i.e. below 1000 nm (nano meters). The underlying asset of Cuprum Coin, a high-purity nano-copper powder produced by our strategic partner Meteor Mineral Group, has a maximum size of 100 nm and an average size of around 21 nm. Therefore, Cuprum Coin and the underlying asset stand out as a unique example of the commodity cryptocurrency.

So, why does CUPRUM COIN’s super-fine nano cooper powder makes a difference besides it’s specifcations?

Asset-backed types of cryptocurrencies, which digitize various “real world” assets, are also a huge trend today.  This unique group of coins became significant because they enable investors to store the value unrelated to the fiat currencies, most of which are prone to inflation and volatility risks.

The main market differentiator of the CUPRUM Coin from similar coins comes from the fact that underlying asset in the form of high purity nano cooper powder protects the value of the holdings for a long, long time. Namely, as described, this rare and highly valued material is in demand in upcoming industries, and it is unlikely to see its value inflates or is exposed to market volatility risk. It is estimated that the demand for ultrafine & nano Cupowder will stay uncompromised in the years to come, with expected demand growth in the range of 8-12% per year.

More about underlying asset demand as CUC’s fundamental value …  coming in our next article.

CUPRUM COIN, Thy Nano Commodity of the Future