I really like coins with real assets for backing.
What I don't understand is how can you guarantee a liquidity ratio of 70% of the currency's market value?
The value of the currency on the market can explode anytime and goes up 50% in a day or more. In a one day time you will not be able to purchase new real estates to back up the market value of the coin. Especially since you did not get new money if currency only changes hands on exchange and rises price.
Can you please explain this since I'm probably not getting it correctly?
Thanks
BTW: links for White Paper and Technical White Paper does not work in the announcement post
Thank you for the really important and urgent question.
First of all, the links are fixed. The site was recently changed and we didn't notice. Sorry for troubles and thank you for information.
Back to your question: from the purely mathematical point of view the things are pretty much like you described, but let's modulate the situation first. The guarantee should only be considered as the "safety parachute", in case the price of tokens drops drastically, or disadvantageous pricing continues for too long. But there are more things that we should take into consideration before making any prognoses.
- 1. The total token volume value and real estate pool value
- 2. The connection in price between tokens and real estate works only for tokens, not otherwise, so, in any case, the price of real estate will not be affected
- 3. It comes from the previous one. Iven if the token market drops drastically, the real estate market won't be affected, which will allow us to have funds needed to cover the required volumes.
- 4. The last, and probably main argument: to bring you scheme into the reality you will require coordinated actions of holders of critical mass of REcoin tokens, which is very unlikely (almost impossible)
Hope it was helpful, we're waiting for your reply.