As a Rupiah-backed stablecoin, the price of each Rupiah Token (IDRT / IDRTB) is stable at 1 Rupiah, because we guarantee that on our website (https://rupiahtoken.com), you can always convert 1 Rupiah into 1 Token and vice-versa.
An important distinction is that the price / value of Rupiah Token in crypto-exchanges may sometimes deviate beyond 1 Rupiah, because the price of any asset in exchanges are influenced by competing supply vs demand forces at any given time. However, such price discrepancy should not exist for a long time, because we expect arbitrageurs will bring the price of Rupiah Token back to 1 Rupiah:
- If the price of IDRT / IDRTB in an exchange is below 1 Rupiah, arbitrageurs will buy IDRT / IDRTB at that exchange and redeem back at https://rupiahtoken.com to gain profit. This increase in demand will push up the price of IDRT / IDRTB in that exchange back to 1 Rupiah.
- Conversely, if the price of IDRT / IDRTB in an exchange is above 1 Rupiah, arbitrageurs will buy IDRT / IDRTB from https://rupiahtoken.com and sell at that exchange to gain profit. This will decrease the price of IDRT / IDRTB in that exchange back to 1 Rupiah.