Reserves in BTC & Ethereum
Many projects failed because they keep their reserve in Bitcoin & Ethereum .I would like to explain this a bit more in detail.Let us say I have 5000BTC in reserve and I got these deposits when BTC was at 10000$
So in Usd I got 5000x10000=50000000$ But BTC Declined Almost 2500$ and Reached at the price of 7500$ But I still have those 5000BTC which Now values at 5000x7500=37500000. You can see clear difference of 12500000 which is impossible to gain back.Only possible scenerio is if BTC go back to 10000$ But at the same time withdrawals will keep on going and at the end reserve will be down by 25%
We find a good solution for this,We will only keep 10% of our reserve in BTC to keep processing withdrawals.Rest of the money will be kept in Usdc.So whether BTC dumps hard it will not effect our reserve in any ways.