Re: [ANN] WHISKYTOKEN The First Whisky Based Cryptotoken
Greetings community, can anyone tell me more about the asset-backed mechanism? The reason of why I am asking is basically because, as far as I understand, this is one of the technologies to make portfolio always equals to tokens.
Hey azam! Here is what their WP says: To minimize the risk of loss for WHISKY TOKEN (WHY) owners, WHYTOKEN GmbH implements a sophisticated security mechanism. This asset-backed mechanism covers the WHY stock market price based on the current value of the high-end whisky portfolio. It is ensured that the value of the total WHY market capitalization does not fall below 90% of the portfolio value (hereinafter referred to as "asset-backed value"
Hmm, sounds pretty beneficial, so this will work from the very beginning to secure token holders even more and make token even more stable?
As far as I remember, this mechanism is scheduled to be implemented three years after a successful ICO, but let me double check that
Sure! And one more question, in case you know, of course, how exactly the mechanism works? I mean I pretty understand its role, but interested in working principles
Checked about implementation - 3 years after ICO. As for working principles, if the market capitalization is subsequently below the asset-backed value for a period of one month, WHISKY TOKEN is repurchased by the WHYTOKEN GmbH until the market capitalization is above the asset-backed value again (buy-back). For this purpose, a portion of the high-end whisky portfolio corresponding to the buy-back will be liquidated initially. From this revenue, purchase orders are placed on the stock exchanges, resulting in an increase in market capitalization. The tokens acquired in this way are destroyed in order to guarantee a deflation and thus a sustainable increase in value
Sounds great, I mean this can make us even more confident in tokens stability
Exactly, WHY protects against loss of value and ensures continuous growth
