A recent Reddit posting claiming that Uphold , a platform that provides various financial services and encourages fintech innovation, was heading to insolvency because of its VOX holdings drew a quick response from Uphold that caused the critic to recant.
The Reddit post a few days ago expressed concern over the fact that $107,936,914 of Uphold’s assets is comprised of VOX, a cryptocurrency for virtual reality games that Uphold helped to create. “There is no way ‘Voxel’ should belong on a reserve statement with national currencies as it is a speculative security that should be marked elsewhere,” the post noted. “Any attempt to sell this position would result in massive write-downs.” Uphold Responds To Critic
Uphold responded in a blog that its support of VOX does not change its solvency picture. “Our support of the VOX doesn’t change this. Remove VOX from either side of our Reserveledger and anyone can confirm that Uphold is fully reserved,” Uphold stated.
Uphold further noted that supporting VOX is an example of its commitment to enabling its members to hold value in any form the way the Internet supports every possible form of information. Uphold said it will add more traditional asset classes, such as U.S. stocks. It said its support of VOX is also a proof-of-concept of how it can bring liquidity and convertibility to closed-loop currencies, including loyalty points, airline miles, in-game currencies and more.
Uphold encouraged readers to check out Voxelus , the virtual reality content platform and marketplace that uses the in-game VOX cryptocurrency. It said the value of VOX in the Uphold system is pegged to the VOX price at the end of its crowd sale which in turn is pegged to BTC. Once VOX is freely-tradeable upon the launch of the Voxelus marketplace (planned for the end of March), […]
