The cover message 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 gradually increase to reach 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 create downward pressure on the price due to the basic principle of supply and demand.
• If there is not a 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 preventing excessive volatility.
3. Expansion strategy:
• An increasing supply is usually associated with an intention to enhance usability and liquidity. This could generate more trust in the project in the long term, keeping the price around $1.
Mitigating factors
• If the USUAL team implements appropriate measures, such as ensuring sufficient collateral to back the new supply, the negative impact may be minimal.
• Additionally, the liquidity provided by Binance could absorb the increase of tokens in circulation without significantly affecting the price.
Conclusion
Although the increase in supply may create downward pressure in the short term, the design of USUAL as a backed stablecoin suggests that the project is prepared to maintain its parity with the dollar. It will be crucial to observe how the total launch is handled in the spot market and how the market demand responds.$USUAL #BecomeCreator #Bitcoin
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