Can bitcoin and altcoin co-exist in sidechain? If Yes, strategy I have private block chain - tweaked  bitcoin blockchain with a private coin by creating a Genesis block. Lets call it "PrivateCoin"

I also have a sidechain elements/alpha instance, I effectively transferred  PrivateCoins to sidechain using the two way pegging. The transfer is successful and I am able to spend the "PrivateCoin" in Sidechain.
(Did some dirty hacks for address format, chainparams to accomplish it! Though no validation was compromised)

I see sidechain pegging is very Bitcoinish! Hope it will soon be clearly configurable for private coins.

Now the questions,


Can sidechain mint have its own asset such as a"SideCoin", so that
"SideCoin" and "PrivateCoin" can co-exist? If Yes, How to? Strategy?
Can we create "SideCoin" at a deterministic exchange rate for the
    "PrivateCoin"? 


  Ex: If I peg transfer 10 "PrivateCoins" from the
          parent chain, I would like to create 200 "SideCoins" at a exchange
          rate of 1:20. If this is possible.


How to? Is it readily
    configurable in sidechain -or- should be coded in ?
No, you cannot set the exchange rate between your private coins and the pegged coins, because you cannot issue the pegged coins yourself.

The chain the pegged coins come from do still keeps track of how many coins were moved out, and there can't be more that come back. That would violate the sender chain's consensus rules.

So say your sidechain holds 100 pegged BTC, and 100000 private coins. If these were cheap to create, people would immediately convert them to 5000 pegged BTC using your 1:20 exchange rate, and try transferring them out. However, only 100 BTC can move back, because from Bitcoin's point of view, that's all what exists. You get effectively get a "run on the bank", and the peg mechanism fails afterwards, because you did not respect the rule that you can only have as much pegged BTC as there are real BTC backing it.