US Energy Initiatives Corp Inc (OTCMKTS:USEI) enters into the cryptocurrency space and it now owns $5.1 million in sumcoins. The horizontally diversified energy company traded its shares for 52,766.66 sumcoins back in 2017.
Sumcoin is a decentralized digital token like a BTC and LTC but different in the sense that its value is pegged to the sum of the market capitalizations of the leading 100 cryptos, hence sumcoin. This attribute makes the token slightly more stable compared to other conventional cryptos.
Ty Jacobsen, the man behind the atcoins’ invention stated that, “Sumcoin solves simple but profound problems. Sumcoins ability as a stable store of value and as an index-based coin solves long unaddressed and poorly understood challenges in the space.”
Coins have appreciated in value
Since 2017 when USEI acquired its stash of sumcoins, the tokens have appreciated in value significantly. The company is seriously considering leveraging the coins’ value to hypothecate and even borrow against it. The coins currently have an impressive valuation of $5.1 million and are making up a significant portion of the company’s assets.
USEI is obviously green in matters cryptocurrency and it would need to procure the services of an expert in the sector to provide guidelines on how they can utilize their sumcoins for developmental purposes. However, in the meantime the digital assets have been stored in the treasury but are constantly updated in the company’s books of accounts.
The cryptocurrency sector had attracted a lot of investors before the recent price plunge. During its peak, the industry had been valued at $900 billion but following the crash, the valuation slid to $250 billion.
Of the $250 billion valuation, Sumcoins command a market capitalization of $876 million- slightly below a billion dollars. The industry is experiencing a devastating third quarter that has seen small scale miners and other participants in the sector running losses. An Autonomous Report recently showed that over 100,000 crypto miners have shut down operations with more expected to follow if the coins fail to stabilize and improve in value.