So I assume knc won't need to buy any coins off of any exchange to back these notes until the number exceeds there current supply. Which is probly quite a bit. ?
I was under the impression they instantly sold the coins they mined and USD is all they cared about. Maybe if this has been in the works for quite some time they were building up a coin supply, but that also means they could've gotten more money for them back in the day.
Not sure how the exchange thing would work. They'd need to know the level of demand to cut out the multi day wait for money to clear. It would be far more sensible to have OTC deals with people they trust.