In contrast with FIAT, crypto is highly volatile currency so instead of converting the coins value at the date of minting in WAX and then backing it up, we chose to back every NFT by the depicted coin face value at 1:1 ratio (for more stable currencies like Pound Sterling, Dollar or Euro) in WAX. Example, if the coin is of one penny it will be backed by 0.01 WAX. If the coin is of one dollar, the NFT will be backed by 1 WAX.
What is the advantage of a backed NFT?
If you have one coin of a quarter, you may want to sell it to somebody else with 2 dollars because you know is a special issued coin, a rarer one. But if it happens to be at your local store carving for something sweet, you can buy a chocolate that costs 25 cents with it. The same thing applies here, if you want to spend the money instead of keeping the NFT into a collection or trade with another person, you can burn your NFT and receive the WAX amount that is backing it. The NFT will always have a minimum value that is set by the face value of the coin is depicted.
Although every coin has the backed value stated on it, the collection value of a coin is given by its condition, by the scarcity of the coin, and by supply and demand. NFTs don’t loose quality so condition is out of the question. Supply and demand… NFTs, in general, are a new type of asset so the supply and demand will only get into place as those NFTs get into the secondary market. That remains only the scarcity of the coin is in our hands… kind of, let me explain:
There will be 5 levels of scarcity: Very common, Common, Scarce, Rare and Very rare. Each of those five levels will have a maximum number minted per NFT and that number is related with the actual mintage of the coin depicted.
How it works?
Each coin will get on the market through 3 drops:
1st drop will be on a Sunday, 8:00 PM London Time, 50% of max supply is available in the drop.
2nd drop will be in the following Wednesday, 8:00 PM London Time, 50% of max supply is available in the drop.
3rd drop is one month away from the second drop, random time, what is left from the first two drops will be available.
UK’s One New Penny coin issued between 1971 and 1982 was minted in almost 4.5 billion units, that will be a very common NFT. The coin that followed up, the One Penny issued between 1982 and 1984 was only minted in less than half of billion units, a big number but a small one if you get into account that is a small coin and will get tossed around and lost… that will make this NFT just a common one.