Token price: This is the price at which the token can be bought or sold on crypto exchanges. This price reflects the highest price at which buyers are willing to buy and the lowest price at which sellers are willing to sell. Hence, the price is determined by supply and demand.
Token value: This is value at which a token can be minted or burnt. It is calculated using the formula as defined in the terms and conditions of the specific token.
Where:
|
t |
is the Valuation Point; |
|
t-1 |
is the last Valuation Point; |
|
i |
is a type of Token; |
|
TVi,t |
is the Token Value of a Token of type i at Valuation Point t; |
|
TVi,t-1 |
is the Token Value of a Token of type i at Valuation Point t-1; |
|
LFi |
is the Leverage Factor applicable to a Token of type i; |
|
RAEPi |
is the Reference Asset End Price applicable to a Token of type i |
|
RASPi |
is the Reference Asset Start Price applicable to a Token of type i; and |
|
DFi,t |
is the Daily Fee applicable to a Token of type i at point t. |
More often than not, the prices of our tokens in the secondary market should reflect the tokens value that is published daily. There may be cases of high volatility that would cause deviations between the two.