Coinbase Ventures, the investment arm of Coinbase, has invested $1 million into Ampleforth Foundation’s innovative financial asset SPOT. The investment is part of a strategic funding round aimed at advancing this unique fiat coin technology.
The evolution of SPOT
Developed by Fragments based on the Ampleforth protocol, SPOT represents a significant shift away from traditional stablecoins as it offers a volatility-resistant digital asset by combining the features of commodity-based money and peer-to-peer digital cash, providing an alternative to stablecoins.
“SPOT is the culmination of five years of research and development by our team,” Fragment CEO Evan Kuo said, highlighting the company’s move from simply replicating dollars on-chain to creating a blockchain-based solution to reduce inflation, a stable store of value, and reliance on central financial institutions.
The integration of SPOT into Coinbase’s Ethereum Layer 2 network base marks a new chapter for the fiatcoin: starting Monday, trading pairs featuring SPOT will be available on decentralized exchange Aerodrome Finance.
SPOT’s Market Approach
Unlike typical stablecoins pegged to fiat currencies, SPOT aims to reflect the cost of living and provide a buffer against inflation, an approach that could redefine the use of digital assets in everyday transactions and as a store of value.
Coinbase CEO Brian Armstrong highlighted the potential of fiat coins like SPOT in a previous discussion: “They represent a better form of money in the crypto world,” he explained, highlighting their role in the next evolution of stablecoins.
This collaboration between Coinbase Ventures and Ampleforth could point the way in which digital currencies are perceived and used in the broader economy.
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