I have a question concerning the buyback guarantee:
Let's say I buy 1000 GET in the ICO.
1 month later the price per GET is at 0.40 Euro.
I have to sell because I need the money.
Can I then sell my GET to the contract / stability fund at 0.50 Euro per GET?
Would I then get back ETH equal to 0.50 Euro per GET?
Good question! So the buy-back guarantee is funded by event organizers using the protocol (and a few of them are already doing so
) These event organizers need GET in order to create smart tickets and run events on the protocol and so buy these GETs from the Stability Fund. After this ETH transaction, the Stability Fund will buy back the GET that was transferred to the Event Organizer from the open market. Please note that EOs can't directly buy GET from the open market, the only way to acquire GET is with the stability fund mechanism. This means that the stability fund will set the price the EO pays per GET. The price is the SF charges the EO is based on the averaging of the GET price on exchanges for a certain time span. There is a 'hard coded' minimum price per GET that the stability will always have the event organizer pay and that minimum price is €0.50 per GET.
So that is a general explanation, now for your specific question. If the price average price per GET is €0.40 then the EO that needs a certain amount of value covered for the event in GET will pay €0.50 per GET as this is the minimum set by the stability fund.
TLDR to your question: Yes, you would still receive €0.50 per GET, taken that at the moment you want to exchange GET for ETH the stability fund is in the process of buying back GET. The stability fund will only need to do so if there are event organizers that on their part are buying GET from the SF on the 'protocol side'.
In the end €0.50 is the minimal/gauranteed amount you will receive at leatst for your GET, assuming GUTS Tickets will be able to onboard event organizers to use the protocol for their ticketing. And we got that covered
Let me know if this explanation clears it up!
Is this buyback guarantee is for ico buyers? or bounty hunters and market buyers can also under this guarantee with some limited quantity?
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