Demand Mechanism
HSF coin liquidity and the price-increasing mechanism
Higher expected revenue for projects listed on Investors will increase the price of HSF. For example, if Project Alpha initially raised a POOL of 100,000 USDT, the project will have 100,000 HSF tokens deposited as collateral rights (when the the market price of HSF is: 1 HSF = 1 USDT). If the project’s expected return increases, users who failed to participate in the initial fundraising POOL would want to use HSF tokens to invest in the room. They are likely to buy an HSF token at price higher than 1 USDT as the value of POOL increases. As the price surges, HSF holders in Alpha Project POOL might also want to sell HSF tokens for short-term profits and give up their rights to the property. This disposal again creates more room space where HSF tokens can be used to secure shares. The increase of the room size attracts more users to invest in the room, and users will buy HSF at a higher price to stake in the room. On the other hand, even if the supply of HSF increases and the price falls, users can buy HSF tokens at lower prices to secure the share of the room, thus increasing the demand and HSF token value. The total supply of HSF increases when Investors releases a new project. The activation of a new POOL in the platform causes the increase in demand for HSF tokens as the expected return of the new POOL increases.
Last modified 6mo ago
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