Token/Coins pegged to real goods - Negative prices

[Bialke]

I am stucked on a real world problem.

I want to peg a crypto token/coin on a physical existing good like electricity or wheat. And I want to trade this coin/token on DEX's. So there are negative prices on these goods. Are there DEX's which can handle negative prices?

Are there other possibility in handling negative prices on the crypto market?

[Nwada001]

What's your own actual definition of negative price" and "positive price"?
I explain the two to myself as Negative price is the time when the price of a particular product goes sideways and it's not in my favor, and positive price is when the price is going in my favor. It can either be if I want to buy a particular product and the price starts to drop.

To others who want to sell it, it's negative to them, but to me who want to buy it's positive to me. If this is also the same way you define negativity, then you don't really need to worry about which dex is to accommodate your token. Dex don't actually regulate price, so they don't care if it's on the negative or positive side. Let there just be buyer and seller, and their fee will keep on flowing in. Dex choice will be dependent on your preferred network on which you want to launch your token or coin.

[Bialke]

A negative price is: I take a sack of wheat from the seller and get 10 USD for the taking from the seller.

[Jawhead999]

I don't think it's possible, negative price only happen on perpetual trading. While DEX is just a like a spot trade in CEX, the lowest price is $0. I think you're want to take advantage by making money by buying a coin which pegged with a real goods where the value is negative lol.

I remembered if crude oil price was negative during the pandemic, but there's no crypto or asset that pegged with crude oil price.

[Oshosondy]

I want to peg a crypto token/coin on a physical existing good like electricity or wheat. And I want to trade this coin/token on DEX's. So there are negative prices on these goods. Are there DEX's which can handle negative prices?

Are there other possibility in handling negative prices on the crypto market?

The only one that I know of is gold backed coins like PAXG, but which I have only seen on spot market and on some centralized exchanges. If you want to create yours, you can try it, but if people do not go for the idea and buy such coin, it will only be a shit coin. There are many assets and commodities that are tokenized, but most of them are found on commodity trading sites.

I don't think it's possible, negative price only happen on perpetual trading. While DEX is just a like a spot trade in CEX, the lowest price is $0. I think you're want to take advantage by making money by buying a coin which pegged with a real goods where the value is negative lol.

I remembered if crude oil price was negative during the pandemic, but there's no crypto or asset that pegged with crude oil price.

I think he only means that for people to be able to sell which can make its price to fall.

Yes, no coin pegged with crude oil. I which it is tokenized but I did not see anything like that yet.

[Bialke]

Maybe it is possible with some kind of second layer. F.E. having a coin for the trading and a token of this coin for the "service of taking". I have to think about it.

Electricity is a big market with negative prices.

Edit:

I mean we have a simular problem with NIKE shoes. I buy shoes to wear them. But I take money to wear clothings with commercials on it.

[davis196]

I am stucked on a real world problem.

I want to peg a crypto token/coin on a physical existing good like electricity or wheat. And I want to trade this coin/token on DEX's. So there are negative prices on these goods. Are there DEX's which can handle negative prices?

Are there other possibility in handling negative prices on the crypto market?

No, I can't think of DEX crypto markets accepting tokens with a negative price. I guess that the only way for a "negative price" to occur on a crypto market would be one trader borrowing a token from another trader and paying him later(which isn't allowed on the crypto markets). Otherwise, there's no way for financial assets to have negative prices, like some commodities. Why do you want to peg a crypto token with a physical good or commodity? I can't find any reason for this. Do you want to create a stablecoin, which is pegged to electricity prices? This ain't gonna work, the price of electricity can be very volatile sometimes.

[Moneyprism]

I am stucked on a real world problem.

I want to peg a crypto token/coin on a physical existing good like electricity or wheat. And I want to trade this coin/token on DEX's. So there are negative prices on these goods. Are there DEX's which can handle negative prices?

Are there other possibility in handling negative prices on the crypto market?

take a look at how stablecoins work,, you can see that 1 USDT is equivalent to 1 USD because it is backed by 1 USD which can be proven and audited.

you can just pegged crypto tokens to wheat, for example 1 TG is equivalent to 1 gram of wheat and it must be proven and audited by a professional team, but it seems that it will make it complicated for you.

[hugeblack]

Commodities aka real goods are difficult to liquidate so that if the token has any problem with the price then selling those commodities will take time, this time is very valuable and investors will not wait until you sell the commodities and give them your money.
Also, when such a problem occurs, you become exposed in the market because you are forced to sell your goods, and therefore no one will buy them, because you will try to sell them in the fastest way, and therefore they will try to lower the price for you.

This is if we ignore the manipulation that can occur and the promise of the ability to verify pegged.

[Coin_trader]

I am stucked on a real world problem.

I want to peg a crypto token/coin on a physical existing good like electricity or wheat. And I want to trade this coin/token on DEX's. So there are negative prices on these goods. Are there DEX's which can handle negative prices?

Are there other possibility in handling negative prices on the crypto market?

Liquidity of your token to back up the pegged value play an important role to avoid negative price. You should offer only a token supply that is equally backed 1:1 to the value of the goods that you want to pegged.

I’m curious on you will manage to secure the goods that backed your token? Typically, Fiat and precious metal is being used to backed crypto because it has a global fixed value while electricity, wheats and other goods have different value based on the country you originated. Also there’s a shelf life on goods.

Can you share your whitepaper?

[southerngentuk]

If demand for stablecoins drops suddenly and investors begin to sell off their holdings, it can be difficult to quickly liquidate the underlying commodity to maintain the stablecoin's fixed value. So why is that important for stablecoin issuers? They want to carefully manage their reserves of the underlying commodity and have a plan in place to manage price fluctuations and sudden changes in demand. There is also the potential for market manipulation or other forms of fraud.

[Mrcashflow]

I am stucked on a real world problem.

I want to peg a crypto token/coin on a physical existing good like electricity or wheat. And I want to trade this coin/token on DEX's. So there are negative prices on these goods. Are there DEX's which can handle negative prices?

Are there other possibility in handling negative prices on the crypto market?

take a look at how stablecoins work,, you can see that 1 USDT is equivalent to 1 USD because it is backed by 1 USD which can be proven and audited .. you can just pegged crypto tokens to wheat, for example 1 TG is equivalent to 1 gram of wheat and it must be proven and audited by a professional team.. but it seems that it will make it complicated for you

Bro. You can give your telegram for communication, or write to me (@CashFlowMy). There is a proposal for cryptocurrency.

[dansus021]

the question is can wheat and electricity have a negative price? and what do u mean by negative price.

The token can be pegged to everything I would say from stock to commodity it basically almost the same instrument that uses candlestick too hahaha. Right now there is dozen of Pegged to real world things like USD, EUR, CNY, IDR and commodity like gold and silver.

[Darker45]

This isn't a real world problem. This is a tokenomics problem. And this isn't even worth dealing with. I remember the days when tokenization was a hype. There were tokens for everything, even for a banana. All of them must have died already.

I'm curious, where are you in the world that electricity and wheat have negative prices? And with your definition of a negative price, people must be consuming as much electricity and wheat as possible because they will get paid for it. This is ridiculous!

[stompix]

the question is can wheat and electricity have a negative price? and what do u mean by negative price.

Yes, they can!

I'm curious, where are you in the world that electricity and wheat have negative prices? And with your definition of a negative price, people must be consuming as much electricity and wheat as possible because they will get paid for it. This is ridiculous!

Europe two days ago!

https://aleasoft.com/weekend-negative-prices-european-electricity-markets/

Remember how oil dropped to -$37.63?
https://www.bbc.com/news/business-52350082

Here is natural gas in the US a month ago:
https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/natural-gas/041023-negative-gas-prices-return-to-permian-basin-as-overlapping-maintenance-looms

It's possible for every commodity to go negative, basically you are forced to take it which involves cost but there is simply no demand for it so you end up paying for worthless stuff, for wheat and for other cereals it's harder because the cost is quite low and both US and Eu have enormous cheap storage capacities, but for other countries during harvest season prices are going so low an overproduction could make them just leave the fields like it is. Remember how farmers used to dump milk in the sewer because there is no demand for it?

[Freddie Boyer]

Europe two days ago!

https://aleasoft.com/weekend-negative-prices-european-electricity-markets/

Remember how oil dropped to -$37.63?
https://www.bbc.com/news/business-52350082

Here is natural gas in the US a month ago:
https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/natural-gas/041023-negative-gas-prices-return-to-permian-basin-as-overlapping-maintenance-looms

It's possible for every commodity to go negative, basically you are forced to take it which involves cost but there is simply no demand for it so you end up paying for worthless stuff, for wheat and for other cereals it's harder because the cost is quite low and both US and Eu have enormous cheap storage capacities, but for other countries during harvest season prices are going so low an overproduction could make them just leave the fields like it is. Remember how farmers used to dump milk in the sewer because there is no demand for it?

Yes, and it's easy to digest where this is going. an interesting illustration depicts the unfortunate situation where a farmer has to get rid of excess milk because there is no demand. I think identical situations arise due to complex factors such as supply chain disruptions, market dynamics, and imbalances between demand and supply.

[passwordnow]

It's easy on this market to have your own token whether it's pegged with any goods that you think are valuable, you can have it. The twist is that there have been tokens that have no pegged into a good or a use case but then they're even in exchanges mostly, the dexes.
The small dexes and exchanges aren't too strict and that's why you see most shitcoins listed there and the typical tokens there are pump and dump tokens which could be taken the same with your planned token.

[dansus021]

Yes, they can!

It's possible for every commodity to go negative, basically you are forced to take it which involves cost but there is simply no demand for it so you end up paying for worthless stuff, for wheat and for other cereals it's harder because the cost is quite low and both US and Eu have enormous cheap storage capacities, but for other countries during harvest season prices are going so low an overproduction could make them just leave the fields like it is. Remember how farmers used to dump milk in the sewer because there is no demand for it?

Thanks stompix for this information this is new to me. Question so if this happens on the market with negative prices what gonna happen, is it possible the minus value even bigger than your showed images?


Back to the thread if commodity can go negative price can tokenized crypto can go minus aswell? The Centralized EXchange with perpetual futures can do that but I don't know on regular market basis

[Captain Corporate]

A negative price is: I take a sack of wheat from the seller and get 10 USD for the taking from the seller.

This type of thing exists in real life? I mean I heard that oil was at negative price for a while, people sold at negative prices, just to get rid of it, because oil price plummeted during the pandemic and that happened for a short little while. But I do not remember too many frequent times where a seller pays to get rid of the goods, that is not really common. In a day and age where inflation is reality, let alone negative price, things do not even go down in price that's a lot more common. I am sure that this must be a rare occasion thing where it is known to happen, but not really common enough to consider building something like this, would be very very unlikely to get used. Most people will just ignore it, and the ones who are interested will not have enough capital to keep it alive.

[o48o]

I am stucked on a real world problem.

I want to peg a crypto token/coin on a physical existing good like electricity or wheat. And I want to trade this coin/token on DEX's. So there are negative prices on these goods. Are there DEX's which can handle negative prices?

Are there other possibility in handling negative prices on the crypto market?

That doesn't make sense with synthetic stocks/tokens. Prices go to negative when actual products like oil barrels and traders have no place to store them. Synthetic token owners would not be resposible for holding the barrels so they would only gain money by trading those tokens as they wouldn't have any legal repercussions for holding them. Physical barrel owners are not going to pay for some random token holders that are playing the markets.