Coffee coin, the first cryptocurrency backed by physical assets, is having a field day.

The cryptocurrency, first introduced by Brazilian Coffee industry giant Minasul Coffee Cooperative back in 2019, is pegged to the price of coffee beans.

As the coin's value is tied to fluctuations of coffee supplies in the physical market, its prices could either soar or drop depending on the coffee beans' availability and the market's demand.

“The coffee coin is a stable coin, unlike other cryptocurrencies that do not have a physical reference of their value,” said Luis Henrique Albinati, the New Business Director at Minasul.

Recently, with frosts damaging a good portion of Brazil’s coffee crops, the harvest was reduced, thus leading to a more limited coffee supply. The scarcity of coffee supplies and the surging of demand secured a higher coffee stock price, which in turn was paralleled by the coffee coin.

The coin has registered an increase in value last week, trading above $3.48, before stabilizing at $3.19 last Monday after the frosts receded.

A unique characteristic of the coffee coin is its trade value as it could be exchanged for actual coffee, given that each coin equates to one kilogram of coffee.