If ETH is over-hyped and does drop in price, investors would not want to sell back their BNT for…
Aaron Fernando
11

Thanks, you’re right, BNT is not “pegged” to ETH in the classic sense, it simply maintains a constant ratio between its ETH balance (this is its Connector to the network) and the BNT supply, while utilizing the Bancor formula mechanism in which supply is dynamic to demand. Of course the prices influence each other, but not in complete correlation.

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