How We Deal With Volatility
May 4, 2018
May 4, 2018
Everyone can agree that cryptocurrency and digital assets are very volatile. In the past, there have been assets that have halved, or double in a matter of days.
Our goal is to create a fair, fun, and unique shopping experience on the blockchain. In order to do that we have to address volatility. For those who do not know, volatility is a word associated with the price of something. A volatile asset like cryptocurrency does not have a stable price. It has a volatile price that is driven from the market demand.
In order to create a fair marketplace, we are backing all deals by the United States dollar.
Let me explain. In our form we have a section called “desired amount” This is a very important section of our form. It tells us how much you are looking to receive and lets us know if making a deal with you (our customer/ seller).
If you would like to be paid in a certain crypto you are welcome to fill the “desired amount” section with the desired amount of crypto(s) you would like. What we do with this number is the following.
Because our service is backed by the dollar to avoid volatility we will pay you that agreed upon amount in the united states dollar amount.
For example, Let’s say you would like 50 xlm for an old video game. We will see how much 50 xlm is at the time and ping that price to it.
Here how that process works.
If 50 xlm is worth $50 and we agree to pay you that amount we will pay you $50 worth of xlm no matter the price of xlm.
This way if the price of xlm goes down you will still receive that amount. $50 (in the example)
If the price goes up it is unfair for us to pay more for your item even. For example, if the price of xlm doubles in 2 days it would be unfair for us to pay you as if the item did as well.
All deals will be made in the united states dollar amount at the time of the deal.