USUAL: Expansion of Supply with Solid Backing to Maintain Stability
The message in the photo indicates that the total supply of USUAL in the pre-market reflects the number of tokens already minted. However, with the launch in the spot market, this supply will progressively increase until it reaches a total of 4 billion units.
Potential impact on price
1. Increase in total supply:
• The increase in the total amount of USUAL in circulation could generate downward pressure on the price due to the basic principle of supply and demand.
• If there is no proportional growth in demand, the price could temporarily stabilize below $1.
2. Gradual adoption:
• As a stablecoin designed to maintain parity with the dollar, the backing mechanism and market confidence will play a key role in avoiding excessive volatility.
3. Expansion strategy:
• A growing supply is often associated with an intention to increase usability and liquidity. This could generate more confidence in the project long term, keeping the price around $1.
Mitigating factors
• If the USUAL team implements adequate measures, such as ensuring sufficient collateral to back the new supply, the negative impact may be minimal.
• Additionally, the liquidity provided by Binance could absorb the increase of tokens in circulation without significantly affecting the price.
Conclusion
Although the increase in supply may create downward pressure in the short term, the design of USUAL as a backed stablecoin suggests that the project is prepared to maintain its parity with the dollar. It will be essential to observe how the total launch in the spot market is managed and how market demand responds.$USUAL #BecomeCreator #Bitcoin
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