Could Univeral Market Access (UMA) Be A Millionaire-Maker Coin?

Last Updated May 16th 2022
6 Min Read

Consider investing in UMA, an up-and-coming crypto project with a lot of growth potential.

One of the most significant advantages digital assets offer is their unrestricted accessibility. Unfortunately, classic derivative financial contracts are quite the opposite of unrestricted and easily accessible. The process to enter a swap position is currently riddled with verification questions and daunting legal responsibilities.

To get set up with a brokerage account, you must complete KYC, anti-money laundering, and investor suitability questions. On top of this, many brokerage accounts have a minimum required amount of money you will need to put up before getting started. Universal Market Access solves this problem.

Universal Market Access does not require any personal verification because it does not rely on a system of trust between multiple entities. Instead, UMA is an open-source protocol that facilitates two parties to design and create their own financial contracts. This protocol uses Ethereum smart contracts and ensures an entirely trustless and decentralized framework that reduces the risk of human error. 

So could UMA be the next millionaire-maker coin? Read on to find out. 

 

Universal Market Access: What Is It? 

Universal Market Access is a protocol used to create synthetic assets based on the Ethereum (ETH) blockchain. In other words, UMA is simply an Ethereum token that is said to describe itself as an open-source protocol known to allow developers to design and create their own synthetic assets and financial contracts. For the uninitiated, synthetic assets are a class of assets that are known to represent various underlying assets and have the same value.

It is worth mentioning that the protocol is said to get its name from the team’s goal of creating universal market access. UMA was co-founded by Allison Lu and Hart Lambur and was launched about four years ago, back in 2018. Universal Market Access is considered one of the largest asset managers for virtual currencies, with UMA as its native utility token, which can be used for a variety of purposes on the platform itself. 

UMA appears to have positioned itself as one of the next best millionaire-maker coins, making now a good time to invest in UMA.

 

Is Universal Market Access A Millionaire-Maker Investment? 

The UMA protocol has five main structural components in its contracts to ensure all sides are adequately protected: margin accounts for each counterparty, public addresses of all the counterparties, agreed-upon economic terms to calculate the value, smart contract functions that maintain the margin balances, and an oracle that provides secure and verified off-chain record in case of a dispute.

Through UMA's open and automated structure, investors looking to leverage funds can freely do so without the hassle and legal risks of using a brokerage firm. UMA uses its own off-chain oracle to allow variability that other oracle platforms like Chainlink do not handle. This off-chain oracle allows commodities, stocks, and altcoins to be used within its smart contracts. The variety of its market connects traditional finance to this automated transaction service that ensures all of its users are informed about their positions and protected against fraud. 

Universal Market Access is one of the hottest crypto projects. There is a lot of scope for growth for UMA, making it a potential millionaire-maker coin. 

Factors That Could Make Universal Market Access A Millionaire-Maker Coin 

Unique Product Offering 

Universal Market Access removes all the technical and financial barriers to derivatives trading. These high-return investments used to be exclusive to accredited investors. An accredited investor can show at least one million in assets. As such, the average investor missed out. Keenly, Universal Market Access empowers anyone to design and build universally accessible financial products. In this way, it lowers the entry bar into the world of financial derivatives and enables new investors to gain exposure to assets that would otherwise be out of reach. 

Universal Market Access eliminates all the middlemen to reduce costs. Additionally, transaction costs are minimized through a margining system. This protocol allows counterparties to monitor and value their trades off-chain. They only pay gas fees when they re-margin on-chain.

Flexible and Secure 

Synthetics trade more efficiently than traditional derivatives or commodities. Users can trade synthetic tokens in near-real-time and across borders. Anyone can create a synthetic using UMA as collateral. It only takes a few minutes to create custom collateralized synthetic crypto tokens that can track the price of virtually any asset or item. 

Universal Market Access operates as an open-source protocol that lives on the Ethereum blockchain. As such, it leverages all the security benefits of the world’s largest Dappecosystem, making it a potential millionaire-maker cryptocurrency.

Derivates Tokenization 

UMA’s application of tokenization to derivatives dramatically increases the scope of assets that can be traded. Further, the transparency afforded by blockchain’s shared ledgers offers unprecedented insight into potentially risky market trends. The automation made possible by Ethereum smart contracts makes debt defaults and non-payments virtually non-existent. The value proposition for a blockchain update for derivatives markets is very high, and UMA is emerging as a leader in the sector alongside projects like Synthetix. 

Don't Miss: UMA Price Predictions

 

Final Thoughts 

Universal Market Access is the perfect example of how blockchain technology can provide a more open and fair financial system to the world. The network combines a variety of powerful features and an easy-to-use interface to drive adoption to new heights. 

UMA certainly appears to be the next millionaire-maker cryptocurrency. However, it is important to remember that cryptocurrencies are volatile in nature. Investors are advised to perform due research before investing in any digital asset.

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