Doesn't this lead us to the classic volatility problem? So you'll give a possibility where the SMT will automatically converted to FIAT, correct? What would be the solution for a case where a customer pay with SMT and during your conversion to FIAT, or at any step during the whole transaction process, the base rate changes due to the volatility? Someone will have to suffer a small amount of loss?
Great point. First, with crypto payments, we will be selling short in the exchange, which covers 90% of the loss risk. The rest will be covered by a small increase in the transaction fee. So whatever the volatility will be, we will be taking and covering the risks.
Second, we dont see the SMT's as a new cryptocurrency, they will be something to pay for our service fees with - whether for a vendor to set themselves up in our system or for a customer to cover the crypto transaction fees, when they pay with Ether or Bitcoin. Our prototype already works with Ether and the MVP will also have Bitcoin transactions available.
The more people will start using crypto daily, the less there will be volatilty issues so we will be accepting and managing them as growing pains.
So, to sum up your answer, in case of token rate changing up to few points during the process of selling/buying/payment transaction between seller and buyers, you will handle the price gap with the money you got from trading profit and transaction fee?