USTX and psychology
Today I want to analyze the most important thing that makes USTX work. I’m not talking about the smart contract algorithm that mints and burns tokens to control the price. I’m talking about something that was very hard to actually measure and predict before the project launched: the psychological effect on investors of a token that does not lose price.
Taken from the abstract of the whitepaper:
“One of the aspects to be evaluated is the psychological effect of the users and how will they react to a token that has lower volatility than the reference market.”
Let’s examine the first week of trading after launch on November 2nd:
The first day or so was quiet, no dips, no pumps, just a small and steady increase. Then more users arrived and price quickly grew to 0.02$. But that nice behavior was shaped by our smart contract and people acted based on that price trend!
Let’s see what it would have been if USTX was launched in a normal AMM DEX (like Uniswap, or Pancake) with the same liquidity level. The following chart represents the first day of trading…
We had a massive sell-off right after launch. Actual USTX price dipped 0.9%, but it would have been 9% in a normal AMM DEX. Do you think no-one else would have sold if the chart was the orange one? That sell-off would have probably triggered a massive sell by other users, causing the token price to dump heavily. But it did not happen. Because USTX is designed to reduce volatility and dumps, increasing user confidence in the stability of the token and the safety of the investment. That’s the key. User understanding that their money is much safer in USTX than in any other coin or token.
During this first three weeks after launch we experienced other heavy sell operations, but the USTX algorithm worked as expected and made those dips barely noticeable. The chart speaks for itself, we go Up Only!