RE: RE: Alchemint (SDT) ICO Analysis: An NEO-based Stable Coin
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RE: Alchemint (SDT) ICO Analysis: An NEO-based Stable Coin

RE: Alchemint (SDT) ICO Analysis: An NEO-based Stable Coin

Ha, a stable coin project! Even though there is definitely a demand for a decentralized 'unit of account' currency, I'm not sure what to think of the following:

However, if the price of NEO falls below a certain point, users have to invest more NEO tokens to make up for the loss. If they choose not to, Alchemint has the option of liquidating the collateral, and the user will have to pay additional fees.

How does that work? It sounds a bit strange to me since the whole idea behind a stable coin is that when the market drops significantly, this thing remains stable right? Could you elaborate a bit on this?

Thanks for another great analysis though!

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