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$APTY & its Emerging Stablecoin

OTC:APTY   APT Systems Inc
APT Systems, Inc. (OTC: APTY) is a fintech company that specializes in payment services, creating financial platforms, and stock research tools. As of now, the company’s main target is developing a financial ecosystem which includes smart contracts and trading services backed by their stablecoin Spera. While the company did not release Spera by the end of April as planned, APTY stock has seen a resurgence due to the company’s focus on compliance with financial regulations following Terra’s collapse. As the final wallet transfer testing is ongoing, APTY stock is one to watch in anticipation of Spera’s release.

APTY Stock News
In Mid-December 2021, APTY deployed its Spera stablecoin on Testnet for internal testing and quality assurance purposes. Now that the testing is complete, the company will be preparing to launch it on MainNet for distribution. Anticipation has been brewing for APTY’s stablecoin since its whitepaper was released back in November of 2021 and this update shows that the company is well on its way to creating a true stablecoin.

Backed by Gold
Thanks to gold reserves from the company’s other operations, APTY guarantees that Spera can always be converted to $1 and backs its guarantee with audits and open-proof of reserves for buyer assurance. At the moment, only 2% of the coin’s value is backed by gold and its total issuance could increase based on public demand since the company has not determined an immediate hard cap for the coin.

Now that the company has completed its quality testing, its preparing to open a pre-release site where investors can indicate how many stablecoins they plan to purchase. APT Systems has already selected an exchange for the initial release, and is working to bring in additional exchanges as well which will help take Spera to the next level.

Verifundr
Stablecoins like Spera are rising it popularity since they can be used for everyday transactions – bridging the gap between fiat money and cryptocurrency. But Spera is also designed to have an active role in international trade through Verifundr – APTY’s escrow and payment provider using blockchain technology. Primarily, Verifundr ensures that funds are released to both parties after fulfilling their contractual obligations which meets the needs of the underserved, global escrow service market.

Verifundr already has a competitive edge over other existing escrow services – which mainly support niche asset values, are expensive, and use slow manual transactional systems that can take weeks to process a transaction. Whereas Verifundr is expected to manage complex high valued assets using blockchain traceability as well as process transactions and deliver funds in only a few moments.

While APTY has been working on Verifundr since 2018 and delayed its launch several times, the company expects Verifundr will attract a significant audience within the first 18 months of its launch. Considering Verifundr’s competitive advantage in this space and lower transaction costs, this deApp could capture a new audience and give Verifundr room to grow in the escrow market.

Last month the company stated that Verifundr is in the final phases and it is now working on the visual interface. With this update, many investors are bullish that APTY will soon reveal the full potential of its financial ecosystem using its Spera stablecoin. As the company’s CEO shared, APTY has “methodically, step-by-step prepared for the release of our true stablecoin Spera while keeping costs as low as possible.” Thanks to this dedicated process, Spera will work “seamlessly” with Verifundr to capitalize on the market.

Stablecoins
This is good news for those bullish on stablecoins – which are fundamentally less volatile than popular cryptocurrencies like Bitcoin . While corporations may be adding Bitcoin investments to their balance sheets, many believe that the “true driving force for crypto moving forward is going to be stablecoins.“- mostly due to their usefulness and lower volatility . On this note, the company’s Dowie highlighted that the company is “creating an ideal digital ecosystem that is timed well for the growing awareness of the value that blockchain and stablecoins bring to the emerging world of decentralized finance.”

AUREX
To give Verifundr and Spera the attention it deserves, APTY has shared an initiative to tighten its corporate focus which led APTY to sell its subsidiary AUREX Trading and Recovery. The company will continue its gold operations in order to back the stablecoin, but will sell AUREX to its previous operations manager. In this way, APTY will maintain its relationships with the precious metal refining industry without the hassles associated with the gold recovery process.

For now, the company will execute the transition, over the next 90 days which means the current gold inventory in the process of being recovered will be transferred to APTY to back its stablecoin. With AUREX no longer part of APTY’s operations, the company is in a better position to execute its plans. After launching Spera, the company intends to launch its beta version of Verifundr before building its financial ecosystem around the platform. With this in mind, APTY is planning three new platforms to follow Verifundr – each with its own capabilities.

Tyrtrade & Intuitrader
Aside from developing a wallet that will work with Verifundr, APTY intends to launch Tyrtrade – a private coin interchange and the only platform that doesn’t require membership fees. It will also work with Verifundr to facilitate users’ trades and transactions while integrating Spera coin delivery. Next, Intuitrader will deliver its risk management services as a broker through its full equities trading platform. The last platform – Excanna – is expected to work as an informative platform for farmers and commodity buyers to exchange information for state sanctioned trade.

Spera
This week, APTY is once again stirring talks among investors after the company announced the US Congress’ efforts to define a regulatory framework for stablecoins. To alleviate US Senators’ concerns regarding the instability of stablecoins – Dowie declared that “the company chose to completely back Spera with US Dollars and gold”.

APTY previously launched a whitelist site for pre-ordering Spera – which resulted in pre-sales of over $1 million. In light of this, Spera could have a competitive advantage against the largest stablecoin – Tether – which is half invested in commercial paper and has been struggling to meet withdrawals.

Now that the stablecoin is in its final stages, investors are bullish on the coin and its ability to work seamlessly within APTY’s Verifundr escrow platform. To prepare for this integration, APTY recently completed the user interface design and implementation for its Verifundr platform. CEO Glenda Dowie assured investors of the company’s efforts to “build Verifundr in parallel with Spera as the escrow wallet must function in both crypto and traditional financial worlds”. Upon completion of this important phase, investors are excited that APTY will see substantial growth.

Dowie believes that the release of Spera comes at a pivotal time given the increasing number of governments realizing the importance of stablecoins in transactions – as well as the growing interest of stablecoins by national media. Now that Spera is in its final stages, many investors are bullish on the potential of the stablecoin.

Making steady progress, APTY recently launched its stablecoin on Mainnet and has announced its expected release date of April 30th. This means that investors who signed up on SRA’s pre-release site will have the opportunity to purchase the stablecoin very soon. The company’s CEO Glenda Dowie has also been very communicative with shareholders and potential investors leading up to Spera’s launch and conducted interviews in February and March to highlight Spera’s potential. Meanwhile, the company has also updated its Spera website and whitepaper to provide investors with more information.

Digital Wallet
After completing a third-party audit to fully test the stablecoin, review all code for functionality, and perform security checks for coding flaws, APTY set about developing its digital wallet. This led the company to partner with Prime Trust LLC as a strategic technology collaborator.

Through this partnership, both companies will work to improve APTY’s financial infrastructure and provide additional financial services such as wallets for purchasing and holding Spera. In the future, APTY plans to integrate this wallet to work in conjunction with its escrow app – Verifundr. On this note, APTY has confirmed that its dedicated wallet will allow the company to mint Spera coin directly into users’ wallets saving time and gas costs during its launch.

APTY’s decision to collaborate with Prime Trust was mainly motivated by its desire to reduce costs where possible and accelerate Spera’s launch date. Collaborating with Prime Trust will likely provide a solid technology foundation for the stablecoin, as the company is already well-known for developing financial infrastructures and increasing volume for stablecoins. This led Prime Trust to make CB Insights’ list of the 50 most promising blockchain and crypto companies in the world.

Danny Sofer – Prime Trust’s VP of Institutional Sales – shared that “Prime Trust’s API platform with its single point of integration is specifically designed to enable companies like APT to innovate and scale securely at an accelerated pace.” Meanwhile Dowie remains confident that “Prime Trust is the perfect technology provider to help us bring Spera to the world,” as the company capitalizes on rising global interest in stablecoin functionality.

Ecosystem
While many investors view Spera as APTY’s chief catalyst, Spera’s launch indicates that Verifundr’s is soon to follow. Together they have the potential to revolutionize escrow apps, as Verifunder is mainly designed to act as a bridge between traditional escrow systems and smart contracts. For this reason, APTY is bullish Verifundr will solve the problems of traditional escrow systems using less time and at a smaller cost to users. With e-commerce sales expected to reach $4.2 trillion in 2022, Verifundr is well-positioned to capitalize on this huge market given the growing demand for digital escrow apps.

Considering that the company is developing Verifundr to work in tandem with Spera, many investors are anticipating APTY stock will reach $1 after both projects are released. With more updates on Verifundr and Spera expected this month, APTY stock could continue to build leading up to Spera’s release date.

Although the company was tentatively planning to launch Spera last April, APTY has not released Spera as it continues testing the stablecoin to ensure its functionality with its digital wallet. Currently, APTY is engaged in the final phase of testing for transfering the coin to the wallet before releasing the anticipated stablecoin.

While the company used MetaMask to develop Spera, APTY is now testing the coin using its fireblocks supported wallet that will allow users to buy and hold Spera using USD. In this way, APTY could be testing the capabilities of its wallet since the company will manage the financial infrastructure of Spera. This testing was made possible thanks to APTY’s partnership with PrimeTrust which added Spera to its carried digital assets.

Stablecoin Market
The crypto market took a tumble following TerraUSD ( UST ) stablecoin’s surprising fall recently. The popular algorithmic stablecoin was supposed to be pegged to $1, but it has fallen to just one cent at the time of writing. This stablecoin’s demise was because UST relied on an algorithm and the cryptocurrency Luna to regulate price fluctuations. This meant that for every UST token minted, the equivalent of $1 in Luna was destroyed—and vice versa.

After losing its peg to the USD due in part to the bear market, UST fell into a death spiral as users redeemed their UST for cash. The influx in supply dropped the price – causing more redemptions. Now, this disaster has led many investors to ask what is the difference between an algorithmic stablecoin vs. stablecoing?

Algorithmic Stablecoin vs. Stablecoin
In short, the difference between an algorithmic stablecoin and a stablecoin is that the former is not backed by any external asset such USD or gold . To mantain its peg, the algorithmic stablecoin instead follows algorithms that are part of the protocol in order to incentivize the behavior of participants in the market and/or the circulating supply to stabilize the price.

While this model was initially popular, following TerraUSD’s collapse, many are less confident and believe that there is no future for algorithmic stablecoins. Luckily, APTY’s stablecoin – Spera – is backed with 98% USD and 2% gold so that the stablecoin is always pegged to $1. As APTY’s CEO shared:

“While senators spoke highly of the theory behind stablecoins, they expressed concerns about stablecoin offerings that didn’t live up to their claims of stability. We chose to back Spera completely with U.S. dollars and gold . Here I’d like to quote Aaron Brown when writing for Bloomberg Opinion, he said: ‘There are only so many ways to compete in the stablecoin business; “we actually have your dollars” seems like a big one,’ and we agree.”

As the company prepares to bring Spera to market, APTY has focused on compliance with current and future financial regulations regarding stablecoins. The company is also intent on avoiding any of the mistakes being made by other stablecoins. For example, the largest stablecoin – Tether – shared in its recent disclosures that it is roughly half invested in a type of short-term corporate debt called commercial paper. This market had a meltdown in 2020 and required assistance from the Fed in order to recover. As long as these vulnerabilities exist, Tether may not be as stable as one would hope. In light of these recent events in the stablecoin market, APTY’s model appears stronger than ever as its potential competition faces greater distrust from investors.

While Spera is drawing closer to completion, APTY’s CEO – Glenda Dowie – has remained confident saying, “Since our inception we have carefully crafted, and followed, a roadmap to bring the SPRA coin to the world. This has included rigorous third-party security testing, moving from the TestNet to MainNet, and now moving between MetaMask and our customized wallets. Spera is on the launchpad, and the countdown has begun.” With its goal now in sight, APTY believes that its compliance with existing financial regulations and anticipated future regulations, will be part of its growth strategy for Spera as it emerges as a true stablecoin.

APTY Stock Financials
Looking at APTY’s financials, the company reported $118 thousand in assets including $13 thousand in cash on hand. APTY also reduced its liabilities from $1.9 million to $935.1 thousand YOY. In terms of revenue, APTY reported only $7 and a net operating loss of $133 thousand since the company is still developing its products. . Despite this, APTY was able to report a net income of $126.5 thousand due to the sale of its subsidiary AUREX and gains on changes in its derivative liability.

Technical Analysis
Despite dropping to its support at .007, APTY stock has regained some momentum leading up to the CEO’s interview. However, it could be forming a double top chart pattern on the hourly time frame and if it completes this pattern by breaking through its support at .007 – this would be a bearish sign. Still its important to note that .007 is a strong support for the stock and if it breaks through it, then APTY stock could see a hard bounce. There is also a death cross of the MAs which appears to be drawing to a close.

The stock shows resistances at .009, .014, and .0174. While recent events in the crypto market may have contributed to the stock’s decline, the stock could start seeing an uptick as APTY releases more news regarding Spera’s launch and Verifundr’s development.

Accumulation is steadily rising and the MACD is bearish but could be approaching a crossover. The RSI is holding at 43. Lately, APTY has seen lower than average trading volume but with additional news from the company, APTY stock could see a rebound back to a penny in the future. Considering its upcoming catalysts, APTY could be one to watch as the market begins to recover.

APTY Stock Forecast
Currently, APTY is taking the time to become compliant with current and anticipated financial regulations which will likely benefit the company in the long-run. Testing out the digital wallet and Spera’s transfer to it is an important step to ensure that Spera’s launch will not encounter any issues which could affect its initial popularity. Considering Terra’s recent collapse after losing its $1 peg, Spera’s model appears to be a safer and more reliable stablecoin option thanks to its backing with USD and gold . In light of this, many investors are hoping APTY stock will reflect the value of Spera following its launch.

At the same time, APTY could prove to be a valuable long-term hold since the blockchain-supported architecture of Verifundr and its integration with Spera, could make this company an emerging leader in the escrow services market. With many people underserved by current escrow services, APTY’s system could be a breakthrough for the company. It is worth noting that, with APTY’s plans for the future, Spera’s launch will only be the first catalyst for 2022 with many more to follow.

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