The earlier investor is investor A not investor 1. Investor A is the one who joined the Price Valuation Phase.
Investor 1 is just an example, he re-present for all the Initial Investors, who hold 100m STD.
You cannot describe a hypothetical "Investor 1" withdrawing his funds without explaining
exactly what investment that very same person made in the first place, and how many STD they got for that investment.
The Investor 1 got his 100m STD in the Price Valuation Phase, which costs him 40 BTC.
And then 100 mil more are mined and sold for 40 btc (cause value is fixed). Using those 40 btc initial investment. Then investor 1 wants to sell back his 100mil std, which costed him 40 btc but OH WAIT no btc are left.
Not a scammer, just bad "quality" post :trollface:
Hi ghibly79,
you are incorrect regarding the 40BTC - the price guarantee does not guarantee the initial investment. In essence the investment of initial investors and other investors buying from the reserve is used to implement the guarantee of ALL investors and miners.
This coin is not a scam
if the exchange and BTC reserve run by the dev is trustworthy and hopefully the BTC reserve is
secured against hacking. But there are other concerns, as I have described in my original post
https://bitcointalksearch.org/topic/m.5908692 . Point 1) was addressed by the dev, but I believe the others remain.
I'm not endorsing this coin, I'm just having fun watching people struggling with math or full of greed, fanboys and all that jazz. Popcorn, please!
Point number 2: The stored STD is not just reduced, it can also be filled up by investors taking their profit, so if 90% of the stored STD are sold, the selling rate really makes no sense but if some of the investors are dumping their coins, the price will make sense.
Point number 3: AMC can not go up easily, that's why a help from multipool is very important. This pool will keep mining and increase AMC.
Point number 4: Yes, price can fall below GER if the dev is not trust worthy. Just like any exchange, when you entrust your money with them, there is a risk that they will take your money and run away, unless the income that fee generates is much more worthy for the exchange.
Well... you assume that people will actually sell using the rate offered by the "reserve exchange". I find that highly unlikely (unless there is a trust issue), because:
- if the free market price M >> GER then every trader will sell on the free market.
- if the free market price is very close to GER then a trader would buy STD, as the downside risk is almost zero. The GER works like an implicit PUT Option for the pricing of STD's, and this Option has a value >0.
In other words I doubt that anyone will sell at your exchange (at least if there is a secondary market) - unless the coin dies.
I haven't checked your update in detail, so some numbers in the following might be somewhat off, but the principle remains.
In the beginning STD's will trade between [1,2]*GER, or more generally [1,2/F]*GER where F is the fraction of the reserve left for sale. As/If the price of the coin rises the reserve will slowly be depleted. Now suppose the price rises to 10*GER, then obviously people will buy from the reserve till buying from the reserve is more expensive than 10*GER.
Hence we know that 2/F=10 and therefore F = 1/5.
In other words if the price was to go up 10x then you'd have to find buyers for 80% of the reserve STD's. This is not easy.
Besides the trust/security issues I find this an interesting concept and way to increase the market cap of a coin as the demand increases.
