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.
Thank you for detailed explanation.
It is clear that it needs a coordinated actions of holders or maybe one investor with sufficient ammout of tokens. What would be done in such a scenario when let's say an investor with sufficient number of tokens wants to claim this? Would you sell the real estate and give him the fiat or can he take the ownership of the real estate? How will you transparently value real estates?
I really like the projects that have some real value behind, but before investing I always have to have a clear picture of the complete story, although I know my questions are not so important at this point in time, since there is a low probability of situations like that. But having a clear picture of this procedures makes coins backed with real assets so special.
Once again, feel absolutely free to ask any questions that come to mind.
Moreover, your questions are really interesting and help the community to get a clearer and more detailed grasp of how it's going to work and better understand our concept. Also, we kindly ask for your patience and understanding. The delays in answers originate from our desire to answer your questions correctly, and some of your questions should be coordinated with a lot of different people.
We are very grateful to you and hope you will understand.
On our side, we understand that real estate market is a very specific one, and in the near future, we are going to make an announcement from a REcoin's founder, which will be mainly about the real estate asset and the REcoin concept as a whole. In connection with recent changes in parts of laws of different countries dedicated to real estate and ICO's we have to react on that and do corrections with all due haste, so the whole team is completely loaded with work right now.