What is UMA Crypto? What is UMA in Crypto? Does it have a future?
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What is ‘UMA’ Crypto ?
UMA Crypto allows you to create financial contracts and synthetic assets with highly accessible tools and features .And represents an open-source decentralized protocol .
That enables universal market access .Hence the name of the project.
UMA is the native cryptocurrency of the UMA protocol (Universal Market Access Protocol).
A protocol that allows you to create your own synthetic assets i.e, digital tokens that represent and track the price of the any real-life asset. These tokenized asserts are known as “priceless financial contracts” on the platform.
Universal Market Access was one of the earliest protocols to emerge. In the increasingly popular sector of decentralized finance. And also a prominent token.
Supported by the second biggest crypto network,Ethereum. UMA aims bring access to decentralized markets to a wide types of users.
By enabling anyone to build their DeFi products on the protocol. UMA allows .
What does UMA Crypto do?
The key to mass adoption of cryptocurrencies is in part their utility and the relevancy of their use cases. As the DeFi sector becomes more popular .
It aims to make the DeFi market more accessible to a wide range of demographics.
This protocol allows you to create different use-cases and purposes.And digitize ant real-value like futures. CFDs, Crypto assets and other financial derivatives.
These financial contracts can be self-fulfilling ,self -enforcing
What are Synthetic Assets?
While users can run them on the Ethereum network. You can also create your own synthetic assets. Synthetic assets are an asset class that mimics the value of another asset.
These are created through the process of tokenization of real-life values.
This is how, for instance you can invest in crypto assets with synthetic asset investments. And still have ownership over that asset even though you did not buy it.
Since UMA runs on permissionless Ethereum blockchain, financial contracts and develop synthetic assets with the UMA.
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How does UMA work?
To enable easy and user-friendly creation of synthetic assets and smooth design of smart contract. UMA relies on complex architecture model with two core components.
Priceless Financial Contract Designs –
Contain templates for financial smart contracts that exist on UMA . Allowing you to design and develop synthetic assets.
Optimistic Oracle Service
The Oracle system also has 2 core components.
Data Verification Mechanism –
Is used for disputes and liquidations .While it also deals with synthetic tokens after contract expiration when settlement is required.
UMA relies on sponsors ,Liquidators and Disputers as integral actors on the network. Sponsors create synthetic tokens, Liquidators can liquidate positions. And Disputers can disagree with the decision of Liquidators
Univer Market Access –
It was officially was launched in 2018.Ans was co-founded by Hart Lambur and Allison Lu.
Lambur is a computer scientist who is also the CEO. And the founder of Risk Labs. Which is charge of UMA project development.
UMA History –
Lu held a position as a vice president of Goldman Sachs .And has a degree in Economics and Management from MIT . Before co-founding UMA .
Allison Lu worked as an advisor at One Daijo ,a leading protocol based on the Ethereum blockchain.
The projects main goal is to grant access to decentralized markets on a global scale and enable anyone.To create synthetic assets.
Is UMA Crypto a Good Investment?
UMA derives its value from its technical capacity.Technology ,use case and mainstream adoption.
The intrinsic value of UMA is defined through its innovative technology.
And the relevancy of its utility. Which is how UMA market value can also be influenced.
The intrinsic value of UMA often does not coincide with the price of UMA in the market.
Mostly due to high volatility in the cryptocurrency market.
It might be a good buy for investors who believe in the potential of the DeFi sector and the value of synthetic assets.UMA IS the most notable project hosted on Ethereum network.
Which is why it may be a valuable addition to your portfolio for short -term trading and in the long run.
How many UMA Coins are in circulation?
It depends on a great number of factors.Including the activity of the dev team .Upgrades and updates ,roadmap developments ,partnerships, institutional investors.
There are currently 69,301,494 UMA in circulation out of a total number of 112.589,270.545257 UMA. The project was launched with i supply of 100 million UMA.
But there is no hard cap on the max supply of tokens as inflation is used to reward network participants. Who vote correctly in the DVM.
This inflation is currently set at 0.05%.However the protocol may also charge fees on financial contracts. Which it uses to buy and burn UMA.
Thus the supply of UMA can be inflationary or deflationary .Depending on the amount of value locked in the protocol and the number of UMA holders voting.
The number of tokens in circulation multiplied by the current market price equals the market cap.
The market cap ranks the crypto in comparison with other cryptocurrencies .
And also determines its market share and dominance.
How to choose UMA Crypto Wallet?
UMA is an Ethereum -based token. So you can safely store it in wallets that support ERC-20 tokens and ETH.
The type of wallet you choose will likely depend on how much UMA you have to store.And what you plan to do with it.
UMA cryptocurrency ICO
In April of this year, UMA hosted the first ever initial decentralized exchange offering on Uniswap. This saw 2 million of UMA’s 100 million initial supply sold at a cost of roughly 0.26$USD.
Of the remaining 98 million tokens, 48.5 million tokens were reserved for the founders of the project.
35 million tokens were allocated to the developers of the network.
Additionally, 14.5 million tokens were reserved for future sales.
UMA Crypto Price Prediction
UMA price depends on numerous factors . That can affect the market value of UMA. Uma price is subject to frequent changes .
And trends reversals. Mostly driven by the high volatility in the cryptocurrency market.
As ell as traditional factors such as market sentiment.
The flow of assets on exchanges and the economy in general.
The price of UMA is also influenced by the number of tokens being used to vote in the DVM .And the amount locked in the UMA procol.
The current UMA price is 1.675092 pounds. UMA is currently ranked #212 of all cryptocurrencies by total market cap with a market cap of 116,233,379.
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What is UMA Crypto used for?
UMA is a platform for creating cryptocurrency derivatives.That operate like traditional derivatives.And which are native to Ethereum.
Without needing to go through a broker ,creating a futures contract for the price of gold .Becomes as simple as buying or minting ERC-20 asset called a synthetic token.
The cryptocurrency space is currently experiencing something which can only be described as a DeFi season. The successive release of DeFi protocols has seen the total value locked in the space exceed 9 billion USD.
While some of these protocols are not particularly noteworthy (or even outright ludicrous), others are bending the rules of traditional finance. Furthermore, introducing novel technologies which were thought to be impossible.
UMA is one of these protocols.
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UMA is one of the top projects on the Ethereum blockchain .With a relevant use case and strong utility. As synthetic assets are gaining popularity .
UMA might become a more popular asset. Which may affect UMA’s price in the market as well.
With the goal of creating a decentralized financial market with free access for all thanks to low entity barriers.
UMA is working on globalizing tokenization and accessibility to decentralized finance.
As DeFi become more popular ,UMA could become a valuable asset in the long run. Thanks to its technology and utility.
(As of 01/15/2023 03:53 AM ET)
Market Capitalization$125.06 million
Coin or TokenToken
Buying UMA is easy ,you can use any crypto exchange ,choosing your preferred amount of payment.
93rd. UMA’s price today is US$1.59 with a 24-hour trading volume of $4.75 M. UMA is +0.14% in the last 24 hours.
It is currently -3.34% from its 7-day all time high of $1.65, and 8.15% from its 7-day all time low of $1.47 .
UMA has a circulating supply of 68.95 M UMA and a max supply of 101.17M UMA.
The native token for the Universal Market Access project is UMA token. It is used as a governance token for the UMA system.
It is also used to fulfill price requests made on the UMA protocol.
UMA means an event where there has been a significant and unexplained change in the price or trading activity . Or both of a particular security.
UMA establishes a workflow in which the owners of certain resources manage the access. That other team members have to a series of resources.
That would otherwise be protected.
Key to UMA are authorizations policies that are established from a centralized authorization server.