EGW Capital has sold back the management rights of the stablecoin Reserve USD (RZE) venture to the clutch of private investors who pretended as the initial investors for the stablecoin.
EGW Capital has received US $750,000 (INR 5.62 crore) in cash and US $2.75 million (INR 20.60 crore) in RZE coins, which it will exit once the retail trading begins this year.
The management of the stablecoin will be substituted for a new player, which may be announced soon by the investors.
A clutch of Russian investors placed the US $50 million under EGW Capital’s management to carve out a stablecoin that can play against Tether (USDT), True USD, and other stable coins. The project got postponed due to a lockdown. The stablecoin was deemed to be used by EGW Capital for its crypto bank, which is still under development. The crypto bank’s delay meant that the crypto debit card venture was also delayed, contributing immensely to the stablecoin.
A stablecoin in the world of crypto can be contemplated as a store of fiat value (government-issued currency). In crypto, one cannot use fiat currency; hence the stablecoins with a comparable amount of fiat currency in their bank account solves this problem. Any investor or trader can use stablecoin to store and invest their earnings in the crypto market anonymously.
“EGW Capital desires to streamline its businesses; we will maintain and develop the necessary group companies. We will continue to use RZE in our upcoming crypto bank, but we will not manage the currency. The decision is merely commercial, ” said Rahul Kumar, CEO of EGW Capital.
EGW Capital has illustrated that it will expand its listing and fundraising business. The crypto academy under the brand of EGW Academy is doing well. The funds raised from this sale of management rights of RZE coin will be invested in the crypto academy business for its further development.
The crypto academy, with over 75,000 students, currently has performed competently. The EGWA coin rose over 700% and is currently trading at the US $23.80 with a market cap of US $607 million, whereas, on the other hand, EGW Capital (EGW coin) has renounced 82% in value from its all-time high of US $29.08 which it touched on March 5, 2020.