A quick thought on what “asset-backed” is (and isn’t)

Let’s talk about that term “asset-backed.” You see it a lot, but the meaning can be tricky. When a project like Onchain Matrix ($ON) says this, it basically means they have a portion of their treasury in big-name assets like BTC and BNB. You can track this yourself on-chain, which gives a clear reference point for the value of their treasury.

The community can use this number (the NAV) to help guide decisions on things like airdrops or if they should buy back tokens. But here’s the important part: it’s not a promise that your token will be worth that much, and it’s not a hard price floor. The market is still in control, and the token price can easily be higher or lower than that reference number.

It’s a useful metric, but it’s just one piece of the puzzle. Hope this helps clarify how it works for $ON!