Hello hope you guys are having a wonderful day.
I’m referring to the initial press statement made on Ichi Medium blog post linked here.
In the TL;DR section it writes:
Initial minting ratio will be set to 80% ($0.80 USDC + $0.20 FOX to mint 1 $oneFOX)
Full disclaimer I do not own any oneFOX but love the idea if ShapeShift DAO decides to let oneFOX monopolize stable coin on the ShapeShift platform. It would be like traditional exchange charging fees to convert crypto to fiat currency.
But back to the main topic, initially when I read the press statement because 1 oneFOX = $1 then it would mean based on $0.80 USDC + $0.20 FOX we are devaluing 1 USDC to $0.80 and valuing 1 FOX to $0.20 which give oneFOX its $1 value. Admittedly I’m still not 100% sure how oneFOX retains value but looking at the reserve ratio 338% I guess the value will stand at least until its first year anniversary. But more importantly, is there anyone else who thinks that statement is valuing FOX at $0.20? Or is there a better way of explaining it?
But those are my initial understanding and thoughts, would anyone else like to share their initial thoughts and the relation to current FOX pricing?
BTW, I’m also am looking for an opinion on my proposal idea on whether or not ShapeShift DAO should have an Investor Relation Workstream, any suggestion for improvement is much appreciated, link is here. Thank you.