Because some one is dumping coins constantly at the exchange. And i believe it is a ltc-mining pool or a private run pool.
Nothing is wrong with this . it is a free market and people can do what they want with their coins. I just want to ping point the source. Knowing the source is always good.
By knowing the source we might even figure out a way to make that dumping a positive thing. We can let the public know that the prices are getting lower, not because people are bailing out , but because there is a un-identified wallet that keeps dumping all the mined coins directly to the exchange. Creating an overwhelm of seller and not enough buyers to support it. So the price crashing is not such a bad sign, only and obstickle. An obstickle that can be diminished by creating a higher buyer demand. Also the upcoming block halving will help.
We can use this information. Once we know for sure it is a pool that is constantly dumping then we can sell and comfort the Karmanians that bought at 6 satoshis that everything is going to be alright and soon it will move forward.
Imagine having this great and fun coin lunched. Early miners are enjoying it and mining away, praising the dev that the coin is moving well. Prices and miners are increasing linearly and steady. You would say this is a great coin no? Now , imagine all of the sudden 1000X miners jump in and mine this coin non-stop. As fast as they are mining it they sell it. This will crash the price of the coin. Is this coin a bad coin now? i wouldn't think so.
Not saying that karmacoin had an influx of 1000x miners jump in, but it does have a few more then it can support right now. And as we can tell, it is slowly destroying the buy orders.
i've estimated a rate of 2/3 mined blocks are mined by this wallet when it comes online. And it comes back online as soon as there is a strong buy order of 3 satoshis or higher. as soon as there is a 2 BTc or more buy order the hashrate jumps up from 1.5Gh/s to 2.9 Gh/s or more .. Clearly some one is monitoring all the exchanges and mining relatively to any scrypt coin profitability
is that a nice reason to know?
sure we can go around chasing addresses trying to figure out who is doing all the dumping... and who knows it might be a botnet operator or someone who just got lucky and mined a bucket load in the first week
but at the end of the day the only thing that will really improve the value of KarmaCoin dramatically is its utility..... the more people who use the coin and can see usefulness in its purpose, the more the value of KarmaCoin will go up.. that is the bottom line.
right now we are just in the issuance and speculation phase so the price should go up and down like a yoyo as different players enter and exit their positions. of course at this very moment that may not be happening because the entire crypto market as a whole is spooked by the collapse of Mt Gox and what that could mean for tighter regulations on all crypto coins.
for whats its worth I expect the dumping to slow down dramatically when we hit block 100,000 (when the block reward also goes down to 110,000) and that's not too far away (only about 3 months after launch).. I think around that time you will see people starting to give away their coins as the coins increase in value. This should lead to greater liquidity and utility in the market.
just on a side note... scrypt is the most likely candidate algorithm for malware, so it means that any new coin based on scrypt is an easy target for botnet operators... since those people don't have to pay for electricity they don't care too much about which coin is the most profitable to mine right now, just as long as the money keeps rolling in.. bot-nets are a scourge that the wider IT community has not yet been able to deal with adequately, so the much smaller crypto community doesn't have much of a chance to deal with them.....
