I am interested to accept LeoCoin as a payment for my company.
If there is a factor 10 price difference between the exchanges, that is not a good thing.
And as Dan said in the interview: We need a stable price for LeoCoin.
If there is a factor 10 price difference between the exchanges, that is not a good thing.
And as Dan said in the interview: We need a stable price for LeoCoin.
All true, but ever since the external exchanges opened, the prices have diverted. For that there is perhaps a simple economic reason; just as the selling prices differ, also the purchasing prices have. I know several persons who have been mining and never got below a cost price of 1€/LEO and others have purchased LEOcoin from miners for higher prices. Only those who mined very early or very cheap can sell at low prices with a profit. The large majority of LEOcoin owners are unlikely to sell at the current price level on the external exchanges. They do however trade on the internal exchange.
Dan Andersson indeed did state in the interview that "If we want mass merchant adoption they need a coin that doesn’t jump up and down in wild ways, stability will increase confidence to actually use LEOcoin and help merchants who need a reliable price from one day to the next" and "One reason we focussed on other developments first, was that in order to have a working LEOcoin ecology, we had to ensure equal chances to mine LEOcoins. For this we wished to avoid further growth of botnet mining or a race of hashes that involves devices like asics. We do not see LEOcoin as a speculative investment, but as a digital currency that should be stable, reliable and widely accepted as a solid choice for entrepreneurs and their client base."
Currently botnet activity has dropped, but as long as POS is not implemented, there will be good chance that the price levels on the external exchanges remain lower as in the internal exchange between LEO members.
Also, if you have not done so, Peter78, please join the LEO merchant program by registering on the LEO marketplace website. It is a pre-registration, as the LEO merchant program is not active yet. Dan said in the interview "Further we wish to develop the merchant program as we now have a better idea of how to implement LEOcoin into their existing businesses. For an only three year old company we have many projects running and not unlimited resources; we made considerable investments for the LEOxChange and the programming team is already working on the next version of the merchant program applications and website."
This is still the current state of affairs, as far as I am aware. You can however, accept LEOcoins, when this is allowed in the country you reside in. In this case, I advise you to use the exchange rate of the LEOxChange or LEObit exchange. Your LEOcoin wallet has already the functions you need to make and receive payments. There is no particular reason to wait until LEO Ltd. has the LEO merchant program up and running, you can accept LEOcoin as you wish and sell them on the exchange of your choice. Prices do differ sometimes, but the volatility is not that high that you would run the risk of losing that much on your exchange.
We are working to move LEOcoin ahead. Now e.g. ETH, Creditbit and other digital currencies have or will soon move to a sole POS mechanism too, the step from the LEOcoin development team to propose a switch to POS is not so uncommon anymore, perhaps this step will be broader accepted. Also the opening of the US LEOxChange that is scheduled for 2016 will draw new attention on LEOcoin. We expect that after the switch to POS, less dumping and speculative transactions will occur and a higher stable price level will be achieved. Yet, we need a liquid market for that, with enough persons trading. With increasing volumes volatility usually flattens too. Not that LEOcoin has been overly volatile in short term periods, but the market capital has gone down considerably over the past year.
LEOcoin Foundation is no participant in professional LEOcoin trading, so we cannot directly influence price formation and price stability. As a decentral cryptocurrency it is our view that no one in the LEOcoin community should be able to act like a central bank, even when a central authority would be handy to reach consensus on design issues. But that is another story.
We are happy to see more trading, a slowly increasing price level and a renewed interest in LEOcoin. But it is just a start and it will take a while before prices on all exchanges will be in line.
