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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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

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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.

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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.

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I know this can be a confusing topic to get your head around — but I hope this helps a bit!

~ chris