Topic: [ANN] FACTOM - Introducing Honesty to Record-Keeping - page 276. (Read 2115900 times)

I remember that pump. There I was, looking at the chart and the implied Bitcoin values of my Factoids...and building castles in the air while shouting "MOOOOOOON!" in my head...

Make of this what you will: this current uptrend has so far been sustained, even though it looked shaky several hours ago. Also, the short sellers are back in force. My perspective on them is a weird one with respect to the usual rules of thumb, but from what I've seen they're tactically smart (shorting in force after a very-short-term leap) but not so smart with respect to the trend: they prefer fighting it. This fight-the-trend stance of theirs could result from them remembering how the previous pump collapsed, or it could just be that they're scalpers: taking micro-profits by pushing down a leap. Likely, both reasons apply.

(There are short-seller bots: one of them has the...charming habit of borrowing in a very large collection of very small amounts. Because of that bot, my "Active Loans" box is crowded as s%&!.)

thanks u for the reply.. i am going to read this over and over again... since it is very late at night already here.... cant concentrate well.. LOL

I don't know ... that could happen but I think it's risky. Seems like awareness is reaching a tipping point. Among other metrics:

http://redditmetrics.com/r/factom
[click on "Total Subscribers"]

Plus bnktothefuture fundraising news will probably be announced early next week. And M2 is looking imminent. Given the likely price rise from these announcements, I personally would reconsider trying to shave a few percentage points off the buy-price now vs. risking missing out on a big rise. It may work out, but I think it's a very risky strategy. Hope whatever you choose works out for you, though.  

That's my bet, I sold and am hoping to buy back at that price.

http://thedashtimes.com/2016/08/11/datayes-and-factom-collobrate/

"As Blockchain technology matures in the future, all transactions will be recorded on the blockchain,
and the “mark to market” stock price as we know today will be evolved to ‘mark to blockchain’ naturally in one step"

I think this is basically correct, though I believe (also: correct me if I'm wrong plz) that the main point of EC is the ability to "lock in" a price, which implies that the cost to use the Factom system will actually vary over time. Some notes I took in the past, from various sources:

Paul Snow: “The Federated Servers set the exchange rate of Factoids to Entry Credits. They do so to maintain a constant real world cost for Entry Credits, around 1/10 of a cent today. ... Someone that wants to use the Factom protocol never has to touch a tradable token. They can provide an Entry Credit address to a third party that converts Factoids to Entry Credits to charge their Entry Credit Address.”

So it looks like the price of Entry Credits remains effectively constant, but the price of Factoids varies according to the market.

Snow: “By allowing servers to set the conversion rate from Factoids to Entry Credits, Entry Credit value can be kept absolutely stable relative to dollars (or some other currency) in the real world, no matter what happens with the Factoid token. This is important for applications, because it allows them to plan their costs over time without worry about currency value fluctuations.”

Snow: “As we onboard a number of sizable applications next year, and as we flush out the rest of the protocol, I believe the token price will take care of itself.”

Snow: “But to build a decentralized protocol, the incentive must be paid out by the protocol itself. As we have built it, each server gets paid the factoid token, and they can in fact never hand them to anyone at all, and sell Entry Credits by converting said tokens into Entry Credits as they make their sales. But notice they cannot sell more Entry Credits than they earned, so they cannot abuse the rest of the network by over selling Entry Credits. ... Furthermore, the protocol can be used to select servers and boot servers out. Because the code is managing all of this, no coordination with the servers is required to participate, and no coordination with the servers is required if a server leaves. ... But if a server didn't care to go into that business, they can transfer the right to sell Entry Credits to someone else that does. How? By simply selling their factoids to the aspiring Entry Credit store. And again, the store cannot over sell Entry Credits, since the factoids naturally handle the accounting. ... This is because Factoids neatly represent the right to obligate the protocol.”

Snow: “The token supply can grow (if speculators drive up the price) until the price stabilizes. And the token supply can fall (if speculators drive the price down) until the price stabilizes. But in both cases, the stable price is when the value of the token matches the money real applications are spending to buy Entry Credits in order to put data into the protocol. That is because the 73K factoids generated each year naturally trends to the value of the factoids drained from the supply to write into the protocol. If people are spending 1 million dollars to put data into factom per year, then 73K factoids should be worth 1 million dollars.”

So it appears the price of Factoids is directly related to the extent of their real-world use.

There's also a helpful discussion here, with Brian Deery providing some clarifications:

https://www.reddit.com/r/factom/comments/436cj9/entry_credits_and_factoids/

Unless Factom releases M2 in the next few weeks, FCT will go back down to below 0.003. Factom rarely gets a sustained pump like ETH. The last huge pump was the one in the March when FCT got pumped from 0.0025 to above 0.008.

The more organizations use Factom to record their data....
the more factoid is burned along the process.
Hence Factoid supply will keep decreasing.

And the interesting part is the entry credit (EC) which is convert from Factoid
is always cost $0.01 per entry...
so even the price of factoid is skyrocketing to planet mars or to another universe
it still wont effect their partner's cost for inputting data.

This is actually good...
their business is not effected by the price of factoid....
they don't care if 1 factoid is $1000...
business still run...
and there's always a need for factoid.

Please correct me if i am wrong in any way since I just get into Factom like 2months ago...

Factom has two parts:

1. The open-source-system - the Blockchain, the protocol

2. Factom as a company


Factoids belong to 1.

Shares belong to 2.


Factoids are something like the system-currency. The main purpose is: About 73.000 new FCT's per month as payment for those who run the federated servers.

But also: Whenever Customers purchase Entry Credits, Factoids are converted into Entry Credits and consumed/burned - out of the system.


That means:

On one side is Factoid-creation ("Inflation"): 73k Factoids per month
On the other side is consumption: Factoid-to-Entry-Credit-conversion - burning

That also means:

The higher the demand for EC's, the more Factoids will be burned, the higher the price has to rise or otherwise more Factoids would be burned than new created.  



Who wants to know what Entry Credits are and what advantages they have:


(...)

Entry credits are created out of factoids (by burning them) at an exchange rate dictated by the system, but they can't be turned back into factoids

Entry credits can be created ahead of time to lock in their factoid-entry credit exchange rate, and used later down the line

The exchange rate is tweaked by the system to stabilise the price of entry credits, while still allowing factoids to be a free-floating currency

Entry credits can only be spent (burned) to store entries into Factom - they can't be spent elsewhere

Entry credits are not transferable - they can only be spent by the account that received them during the factoid->entry credit conversion

These restrictions create a few interesting features for the system that I don't see explored much in other cryptocurrencies:

It is possible to put a large amount of entry credit tokens on a hot wallet without worrying much about theft - any would-be hacker wouldn't be able to cash out the stored value, only spend it. This makes production servers much less of a target for attacks.

Being able to lock in the price of the tokens ahead of time means companies can budget ahead of time and don't have to worry about token volatility

Having the exact amount of tokens in an account, one always knows how many transactions they can perform in the system before running out
http://bravenewcoin.com/news/transactional-currencies-entry-credits-and-gas/

I see u re a newbie. This generally works with a lot of pump and dump coins but with Factom is a bit different. Wait till Monday and you ll understand why.

Can anybody explain in easy words :

What is the difference in buying Factom / Factoids ?!? on an exchange like polo and invest in the Series A on BnkoftheFuture?

And how many Factom Coins will there ever be created ? Is there any distribution roadmap?

Why does the Coins have any value at all , where are they used for ? Same principle like gas in ethereum ?

The price is going down, imo this is people sell in the news, and it looks like sell on the news is correct, sell at 0.0045, and rebuy under 0.003, more factom.

i did personally on my blog (indonesia) 
http://www.oneyesoneno.com/2016/08/kolaborasi-datayes-dan-factom-akhirnya-diumumkan.html

sold on news   very nice profits. - will keep buying steem

How come there s no media coverage for recent China related stuff? Portals present whenever somebody gets robbed 2 BTC in Madagascar and they do not show something this big?

No.  M2 is the harder milestone.  M3 will simply decentralize the system.

If/when M2 works, the real fun starts.

This is what matters though in the long term, its pointless obsessing over day to day movements, or finding meaning in an orderbook.



Total number of FCT or FCT holders? anyone can create as many wallets as they want, wouldn't say its easily tracked.


So M3 is a few years off? And theres no new factoids created/paid to the servers until then?

the papermill will create the public and private keypairs.  It does not require the blockchain in order to use.  it can be imported into a wallet later and used to create transactions.

Before I would send any factoids to the paper wallet, I would import the private key into walletapp.  if the public key on the paper matches the public key in the wallet, it should be safe enough to send.  you do not need the blockchain or factomd running in order to import a private key.

if you are worried about local attackers, you can run a CD based linux distro with the computer hard drive disconnected.  this will stop the private key from being saved locally.  download and install the factomd binaries then run walletapp.

Yeah, I think this is basically right. Blazin888 also has a helpful overview in the first post of this new thread:

https://bitcointalksearch.org/topic/fct-factom-how-factoids-work-price-speculation-1521895

Wowie, what a ride! I've been playing the Lending market for most of the day (off and on) and the daily rates have been HUGE. As I write, the low offer's 0.1298% per day...and I have lotsa loans at above that rate.

Funny how Facton's market has been unusual: in that, the short sellers - over the longer term - act a lot like dumb money. I've been not only lending my Factom but also loading up more when the rates got above ~0.4% daily. Relative to the stock market, it's pretty weird. In stock-market land, the short sellers tend to be the smart money. At Polo, not so much. From what I've seen, short sellers' dumping have just held back Facton's rise. They haven't put any long-term dent in it; they've just acted as roadblocks.

The wind is definitely a tailwind...