Ok so my question is if an entry credit is 0.05 cents, why are Factoids over $3 dollars? How does this make sense if they get swapped 1 for 1 and burned? They need to have parity....minus some demand ofc. Thats the point we make here, Factom is already way passed overvalued for the time being. Also we see clear insider trading with the pump days before M2 news. Now it will be a sell the news with sustained volume to those thinking paying $3 dollars for something currently worth $0.05 cents is a smart move short term, we will likely drop a bit lower than before then start creeping up as contracts are made and entry credit prices actually go up.
Entry credits are held around .1 cents. There is an exchange rate, so they are not swapped 1 for 1. At $3 an FCT, they are exchanged at 3000 Entry Credits for 1 FCT.
As the price goes up, fewer FCT are burned for the same activity in the protocol. Once elections are in place, we grow the supply when the price goes up (fewer FCT are burned), and lower the supply (more FCT are burned) when the price goes down. So the token is (eventually) self stabilizing.