Really? Ever heard of the concept of free-market or the fact that someone can decide to sell lower on the free market just to make green hands panic? Unless you intend to vigorously support the token price. If it's the latter, do tell how you intend to accomplish that
Thank you for your interest
Yes really, and let me ask you why USDT has never dropped below 10% max.
Developers of the coins or tokens able to do it if they want, and if they qualify, but they are seeking quick profit without care about investors, it is not impossible to support the token price, MUSD do this and care about investors.
You may not believe it until you see it work on the exchanges and you will see by yourself how it works.
But let's leave the price and talk about the benefits of MUSD.
You can buy using MUSD a lot of products and services, (see partners’ websites).
Domain name, webhost, vps, servers, man’s fashion, women’s fashion,…and more.
Holders of MUSD will not only get a benefit from the price but also able to buy a lot of services and products.
I know it is unbelievable; but it is really true, all these benefits are in MUSD and are not found in other token.
As i said you will see all this are working, but at this time the train will have left the station.
Why would a stablecoin drop below 10% when each token is collateralized with real world asset?
The rules of the game is different for stablecoins. They represent fiat counterparts and as long as they are fully collateralized, they are identical. Meaning their implementations on exchanges is more centralized and almost nearly in the controls of their issuer's market makers. If volatility is the name of the game, we're not short on volatile assets.
Why would a stablecoin drop below 10% when each token is collateralized with real world asset?
Yes i agree with you and this correct.
Meaning their implementations on exchanges is more centralized and almost nearly in the controls of their issuer's market makers.
No this not correct.
The reason stablecoin price stable because the issuers supports the price in the market and provides the liquidity needed to stabilize the price.
The second reason the issuers do not allow the price to drop buy offer to buy the coins at all the time at this price.
So all you need to support the price to cover all selling phase.
I agree with the first poster. There is no way to guarantee that price will not drop. Almost all ICOs I have observed immediately drops in price due to dumping by devs and people that got coins for free as well as by people that see the coin price will not rise and then dumps to get out quickly before losing too much. You just cannot make any guarantees. The only thing that is guaranteed is that the price will go down at some point.Lastly, if you plan to maintain any price in the market artificially you must have really deep pockets or a big backer as you will buy back most of your own coins.