Replies to post #231 on SmartDeFi Tokens

[BurnIT]

Ok, geting used to Ihub, first time here, also researching on it, realy nice informative place.

So about that, lets say baseline value of some token is 1$ and market price that is trading is 5$. Then ultra big vhale comes and sell all he has and in moment price of token drops to 0.5$. Now people see this and they start buying on market and burning for baseline price, so they are buying on one side for 0.5$ and “selling” on other side for 1$, making secure profit. By dooing that they are automaticly again raising market price because of buying pressure.

So you have liquidity pool and price of token is bnb in liquidity pool divided by tokens in liquidity pool and marketcap is that price multiplied by all tokens in circulation.

Asset backing is pool separate from liquidity pool but baseline price is bnb diveded by all circulating tokens so its guaranted price per token.

That is why in BurnIT we made so drastic burning, by it you have less and less circulating tokens to be divided by so it has brutal pressure to market and to baseline price, magic!