Let’s Talk About Price And The Importance To Buy On FEGex
First, let’s start with the fundamentals of how the price of FEG is calculated. The price is calculated by taking the amount of the base pair and dividing it by the amount of tokens.
When calculating FEG price on FEGex, if you take the current price which is 5.76*10^(-9) you can get it by taking the base supply 1934 fbnb(FEG wrapped BNB) times the price roughly $500 divided by the token supply 167.7 Trillion. The best thing is that nothing intervenes in this process.
Side notes we will consider mostly the BSC side of FEG but the same applies to the ETH side as well.
Let’s have some fun
Now suppose that we continuously buy 1 BNB worth of FEG without the presence of sells (I know this is impossible but consider this just for the sake of demonstration). Here below would be a graph based on the next 50k trades that would all be of 1 BNB on a classical DEX. Now, how many trades of 1 BNB would we need to get back to the ATH. So the ATH was at 55k/T so 5.5*10^(-8). To achieve this we would need 4066 trades. leaving us with 54T of FEG and 6002 FBNB.
Also as you can see on the graph the price is increasing exponentially with the supply decreasing in the LP pool.
But are we a normal DEX?
I hope that you all know that the answer to this is obviously no. What do we have that other DEX’s don’t have?
FBNB and Weighted Buys (soon also one more feature)
FBNB (FEG wrapped BNB)
What makes our DEX so special is that even if there are no buys of FEG, the price is still increasing. That’s because of the FBNB that is getting reflections. Recall from above what makes the price move?
A greater number of the base pair(FBNB) OR the presence of fewer FEG tokens will increase the price of the token itself.
Did you know that FEG has 10% of the total supply of FBNB? This means that with each FBNB trade from ANY token(will eventually be hundreds if not thousands of tokens) paired with FBNB, FEG gets 0.001 FBNB added to its liquidity. Eventually tokens like ADA, BTC, DOGE, and so many others will be paired with FBNB meaning that whenever someone buys or sells ADA, BTC, DOGE, or any crypto on FEGex, the price of FEG will increase. In simple terms, this also means EVERY buy and EVERY sell of EVERY token on FEGex increases the price of EVERY token on FEGex while increasing the price of FEG the most due to the constant increase in the amount of the base pair for all tokens from EVERY trade! So with 1 million dollars of trading volume (2000 BNB), FEG receives 2 free BNB added to its liquidity out of nowhere. Note FBNB and BNB are equal in price.
So suppose that we would have 1 million dollars of trade volume on FEGex which is not much at all. That would then be an increase from $5700 per Trillion of FEG to $5900 per Trillion of FEG in 1 month just from trades of any token paired with FBNB.
Now let’s crank it up and say FEGex has 10 million dollars of trade volume. That would lead to an increase from $5700 per T to $7400 per T in one month supposing there would be NO buys or sells of FEG itself at all. Just imagine if people were actually buying FEG on top of this.
Now let’s dream a bit of the future where we would hit 100 million dollars of trade volume on fegex. This would lead to an increase in the price of FEG from $5700 per T to $23000 per T in one single month without any trades of FEG. Mindblowing isn’t it?
FEG is truly built to succeed. In the near future, all holders of FEG will greatly feel this immense positive price pressure.
Now some of you may ask yourself, “FBNB sounds nice but this means that the buyer would only get 0.99 BNB rather than a whole 1 right?” What if I told you that FEGrox expertly coded a magical way to not only reward all FBNB holders, but also all buyers of any token on FEGex still receive 1BNB worth on every buy.
That’s exactly what is happening! This means you get a little bit more of the buying power to make it equal to a 1:1 buy instead of a 1:0.99 buy. So in the end, you receive a bit more. Recall from above what makes the price move again? Tokens decrease or base-pair increase. Herewith the bonus the tokens decrease a bit as well.
So with EVERY buy, you literally have both of the two conditions to increase price met on FEGex AND you have a bonus on both sides meaning that this increases the price even more.
Now let’s redo the fun part
Here we will assume a 1 BNB buy per trade and no sells again. We also assume that each trade is done on FEG only. (meaning that the actual result is guaranteed to be bigger than what I will show)
To show the impact of it we will do 5000 trades all at 1 BNB. The notation 1:x means that for each 1 BNB that gets bought, BNB gets traded on another pair on FEGex.
So for 5k trades, there is already $11 per T of a difference and this is from the offsets and BNB rewards alone. This doesn’t contain trades on FEGex of the other pairs. On the 1:1 we have $12 per T and for the 1:10 we would be at a bonus of $23 per T. This might sound small, but over time this makes a big difference as days pass. That’s based on 2.5 million dollars of trade volume and as always volume is king.
Do you want your FEG to grow? Help the ecosystem by trading on FEGex. With this, your FEG will naturally gain more value over time. Also, don’t forget that other pairs do buy and burn some FEG. It might sound ridiculous that it’s always 10B by 10B but also recall that you can’t buy more than the supply has to offer. This makes it also important to hold your FEG and you can also see how fast it will grow.
We haven’t even talked about, smartswap, gas rebate, presale burn, and all the other features of fegex that contribute to the positive price pressure. Recall that all those features on FEGex help to buy and burn FEG which pushes the price up. Use FEGex for all your trading and the price of FEG will skyrocket! It is only a matter of time!
FEG Ecosystem Links
1- FEG: fegtoken.com
2- ROX: fegrox.com
3- FEGex: fegex.com
4- Deploy: fegdeployer.com
5- Pre: presale.fegex.com
6- Stats: fegstats.com
7- Chart: charts.fegex.com
8- Track: fegtrack.app
9- Faucet: fegfaucet.com
10- Radio: fegradio.com
11- Stable Coin: usct.com
12- Blockchain: mastercrypto.com
13- FEGcentral: fegcentral.com
14- Whitepaper: https://fegtoken.com/FEG_Whitepaper.pdf
15- SmartDeFi: smartdefi.com
This post was inspired by our team member Bal Gu’s Reddit Post: