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> Reflexer is collateralized by ETH which is traded 65% of the time against USDT which is backed by chewing gum and hope. This USDT trading determines the price
by leppr 5y ago
> Reflexer is collateralized by ETH which is traded 65% of the time against USDT which is backed by chewing gum and hope. This USDT trading determines the price.
What kind of logical fallacy are you trying to make here? If someone sets up an exchange for bananas/pokemon cards and it ends up grossing a majority of the global banana trading volume, that doesn't mean the price of bananas is suddenly backed by pokemon cards.
Furthermore, the mechanism through which Reflexer maintains the stablecoin's price is independent from the collateral asset. It works just as well whether the collateral asset is traded against USDT or fiat.
- solveit 5y agoNo, but if you had a banana farm you would be very very wary of pokemon cards turning out to be a ponzi. Bananas are nice and would be worth something regardless, but would they be worth quite as much if people weren't fraudulently printing pokemon cards to buy bananas? How much of the perceived value of bananas is a mirage caused by fradulent pokemon cards? We may never know before the house of pokemon cards collapse and the rubble clears.