【Noblesse Oblige CryptoDiary 2】Perspective on Currency Structure, Correlation with Backing Assets, and Soundness

Most currencies are correlated with BTC in terms of price because their backing assets are BTC, BNB, SOL, or other Layer 1 currencies. However, if the backing currency itself experiences volatility, the nominal value of the backing asset will also fluctuate, leading to a decrease in the relative value of your own currency.

In other words, if the backing asset's value drops, the value of your currency will naturally drop as well, causing the price on the chart to decline. While it would be ideal if the backing asset continuously increased in value, this is not always the case. There will be times of volatility or even extreme crises.

Thus, if the backing asset falls into a negative trend, it can severely impact your project, causing a dramatic price drop even if you haven’t taken any action. Additionally, if there is selling pressure from investors, project members, seed investors, or pre-sale investors, this can exacerbate the decline, accelerating it into a major crash. However, the backing asset for our currency is "USDT". The backing of USDT ultimately comes from "USD", which is currently the most stable currency on Earth. If USD were to disappear, it would be equivalent to a complete breakdown of global economic functions. Therefore, the value of USD disappearing is practically impossible.

Additionally, to maintain stability and a baseline index of 100, the value of our project currency is not subject to significant fluctuations due to the backing asset. Because of this, major crashes caused by the backing asset do not occur. Whether BTC crashes or BNB crashes, the price of our Noblesse Oblige currency remains unaffected, as evidenced by the fact that our currency price did not move at all during the recent BTC drop.

On the other hand, have you ever seen a currency that, despite being linked to BTC, does not rise in price when BTC increases? This is a common occurrence and happens because such currencies sell off the nominal value gained from the backing asset’s increase. In other words, the currency’s value itself hasn’t increased; rather, it’s merely trading based on the rise in the value of the BTC backing asset. Project operators sometimes engage in such covert and malicious practices.

Additionally, there are many currencies that, despite not increasing in price when BTC rises, will mimic a decline in price when BTC falls. This is a frequent occurrence, and it may be that these currencies are actually selling off while creating an illusion that they are merely following BTC’s price movement. The cryptocurrency world often adopts a mindset that BTC’s drop is understandable, and most people lack the knowledge to understand whether the correlation or its inconsistencies are real.

Therefore, projects may covertly sell off during BTC’s drops while exploiting the narrative that "BTC falling is unavoidable," creating an excuse for their currency’s dramatic drop. Such sneaky tactics occur because the backing asset is not a stable currency but one that is influenced by correlations. We deeply understand this phenomenon, which is why we use "USDT" as our backing asset, creating a state where we are not affected by price declines due to correlation.

We also ensure that no contradictory movements occur. This represents sound thinking and effective market management. A truly stable currency focuses on these aspects, building a strong structure, and aiming to create an honest market. Noblesse Oblige incorporates these elements into its currency structure, creating a market framework that eliminates significant downward risks to the utmost extent.

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