# EMP is pegged to Ethereum at 4000:1. What does that mean?

Ok - so it’s important that you understand this - so let's go through this step by step!

The price of EMP is linked directly to the price of Ethereum.
The ratio is 4000:1.
That means that WHEN 4000EMP equals the price of 1 Ethereum - we are known as being AT PEG.
Another way of putting this is "When we are at PEG - the exact ratio is 4000 EMP = 1Ethereum”
So being “AT PEG” means that if you divide the price of Ethereum by 4000 - you will get the current price of EMP.
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HOWEVER….…of course it’s not (sadly) as simple as that!  (it never is) 😀
The 4000:1 ratio is only accurate when EMP.Money is ‘at PEG’.

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The PEG is completely dependent on the buying and selling volume of EMP.
If there are more buyers than sellers of EMP - the PEG goes up.
If there are more sellers than buyers of EMP - the PEG goes down.
So - EMP.Money is pegged to the price of Ethereum at exactly 4000:1 when the PEG is 1.0

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### EXAMPLE 1

Imagine ETH is \$1600
If we are at Peg - that means the price of EMP would be \$0.40

This means that the ratio is exactly 4000EMP:1ETH

### EXAMPLE 2

Now imagine  that ETH is still \$1600 - but EMP is \$0.20
This now means that the ratio is 8000EMP:1ETH
So this means that the value of EMP has fallen.
In this example - this would be because we are below PEG.
This is because more people have been selling EMP than buying.

### EXAMPLE 3

Imagine  that ETH is still \$1600 - but EMP is \$0.60
This now means that the ratio is 2666EMP:1ETH
So this means that the value of EMP has risen.
In this example - this would be because we are above PEG.
This is because more people have been buying EMP than selling.
I know this can be a confusing topic to get your head around — but I hope this helps a bit!
~ chris