That's not how it works at Mercatox at all, or on Bittrex or other platforms for other ERC20 tokens. It's a direct transaction.
Just like a farmer on the US/Canada border might sell his crops for USD and CAD and has a price for his crops in both currencies, this is no different.
I would argue in the case of VERI trading, traders consider the price in their local fiat currency as much as anything else.
Yes, indeed those exchanges do direct transaction.
But...
Do you ever realize because of such direct transaction, those exchanges re-introduce the element of trust into the system?
By right, we get into blockchain because of it being trustless.
And those exchanges doing direct transaction is not being trustless, which is one reason why they can lock/freeze/steal their customers' funds.
What I am in favor of is direct transaction in a trustless network.
At the moment we are doing direct transaction in a trust-based network, which contradicts the blockchain.
If Veritas' market cap exceeds eth's and btc's market caps in a trust-based network, then Veritas' market cap is unsustainable and will adjust lower.
If Veritas' market cap exceeds eth's and btc's market caps in a trustless network, then Veritas' market cap is sustainable and can go even higher.
At the moment, as Veritas is an ERC20 token, thus it cannot exceed eth's market cap in a sustainable way.
I know my argument is hard to be accepted, but I believe I am right in this and time will eventually prove I am right.
Edit:
If you set up an exchange to accept USD for VERI, I will need to trust you that you will send me VERI after receiving my USD.
Then you will say, "No need for trust as everything is based on smart contract".
Yes, but your smart contract will be programmed/written to consider BTC/ETH and ETH/VERI to finalize the transaction.
Your smart contract can NEVER be programmed/written to exclude ETH from the equation (if you say it can, that means you are lying).
In such a structure, direct transaction is possible whereby ETH is used as gas only, not currency, but I still need to trust you.
In a structure where trust is not needed (trustless), then ETH will be used both as gas and currency.
For that, Veritas' market cap will remain
capped by ETH's market cap.
I hope you are intelligent enough to understand what I wrote.
The only thing that can reduce the risk of trust, is for the exchanges to have Veritas token stockpiled as reserve.
Then ETH will be used as gas only.
Or else if exchanges have no such reserve, then they will be forced to convert USD into ETH and then ETH into VERI, thus ETH being used as gas and currency, limiting Veritas' market cap.
