Topic: Are Altcoins the new "Penny Stocks" ? Will they take over Wall Street? - page 4. (Read 4334 times)
July 16, 2017, 08:20:56 PM
Yup, I always though of most of these altcoins very similiar to penny stocks. You can make huge gains if you play your cards right
July 16, 2017, 08:05:54 PM
So what does this mean?
Are a high number of altcoins a good thing?
What about the value of one coin affecting the rest?
Do you see "Market Sectors" emerging with altcoins? If so, what sectors would there be? and what sector would Bitcoin fit in?
I know one sector that would emerge for my favorite coin "FootyCash" (FOOT) : the Sports Sector!
Are a high number of altcoins a good thing?
What about the value of one coin affecting the rest?
Do you see "Market Sectors" emerging with altcoins? If so, what sectors would there be? and what sector would Bitcoin fit in?
I know one sector that would emerge for my favorite coin "FootyCash" (FOOT) : the Sports Sector!
July 09, 2017, 10:53:14 PM
It's really hard to compare the two, of course shorters will exist in any market, so pumps and dumps aren't all that uncommon. The cryptomarket and ICO's in particular are still in infant stages, so volatility and giant gains and winners will be commonplace until the market starts to establish.
ICO's are good for the economy as it'll attract investment from different areas to new projects bringing more eyes to the market, bringing hopefully more players. Of course at the same time these can be used as scams relatively easy, so it is a double edged sword.
ICO's are good for the economy as it'll attract investment from different areas to new projects bringing more eyes to the market, bringing hopefully more players. Of course at the same time these can be used as scams relatively easy, so it is a double edged sword.
July 09, 2017, 10:14:37 PM
Not all but most of 
!
! 
July 09, 2017, 09:46:17 PM
many have called altcoin market as Penny Stocks over the years and i kinda agree with them too but i also find a big difference between the two markets.
in Penny Stocks market, it is my understanding that you trade shares of real companies so there is some reality to it. there is a physical company that is doing something. there are jobs, employees, money going in an out, ...
but in altcoins you are trading mostly "tokens" and these are mostly virtual not real. granted there is the similar blockchain technology behind bitcoin and altcoins but the differentiating factor is usefulness. when there is absolute zero usage for most altcoins and nearly no usage for the rest then they become virtual tokens changing hand.
in Penny Stocks market, it is my understanding that you trade shares of real companies so there is some reality to it. there is a physical company that is doing something. there are jobs, employees, money going in an out, ...
but in altcoins you are trading mostly "tokens" and these are mostly virtual not real. granted there is the similar blockchain technology behind bitcoin and altcoins but the differentiating factor is usefulness. when there is absolute zero usage for most altcoins and nearly no usage for the rest then they become virtual tokens changing hand.
Actually, the idea that penny stocks are "real companies" is a myth...
Most penny stocks involve promoters + lawyers building a super-complex financial structure and then selling you a "good story".
It's the "good story" that matters. There is nothing else.
At least alts have real value as a network re: Metcalfe's Law...
There must be at least 500,000 people globally addicted to the zero sum game of crypto at this point...
These networks have real value just like Facebook did before it had any revenue.
You may see a little correction in the short term...
But the total value will explode as various "bridges" come on stream to facilitate cross-chain atomic tx.
July 09, 2017, 09:26:59 PM
There are over a thousand companies and stocks listed on major U.S stock exchanges. Despite tech giants like Apple (APPLE) and Google (ALPHABET) having near trillion dollar valuations, its has not taken away from the other approx 20,000 other stocks sold on various exchanges:
https://www.quora.com/How-many-publicly-traded-companies-are-in-the-world.
There are only only approx 900 Altcoins in the world compared to 20,000 U.S stocks.
Bitcoin (BTC) has a valuation of approx $40 Billion USD but smaller Altcoins like FOOTYCASH (FOOT) and Tatoocoin Limited Edition (TLE) have seen 5000% increases in the past week.
Are Altcoins becoming the new penny stocks?
https://www.quora.com/How-many-publicly-traded-companies-are-in-the-world.
There are only only approx 900 Altcoins in the world compared to 20,000 U.S stocks.
Bitcoin (BTC) has a valuation of approx $40 Billion USD but smaller Altcoins like FOOTYCASH (FOOT) and Tatoocoin Limited Edition (TLE) have seen 5000% increases in the past week.
Are Altcoins becoming the new penny stocks?
For me altcoin is much better than " new penny stocks ", it's changed alternative payment and investment platform becomes more challenge and profitable. Altcoin maybe can't replace currency as major investment but coins are not penny stocks. You can see their price action, volume that's sometimes become reason why we choose altcoin as an investment. Don't loose faith about altcoin but never replace your money on wrong coin, you'll lose anyway. Good luck.
July 09, 2017, 09:17:38 PM
I think they are more valuable then penny stocks. I think many of these top alt coins are about to disrupt the industry they serve. Only time will tell.
July 09, 2017, 05:06:41 PM
In 2013 the fear was that the high number of altcoins being developed would kill cryptocurrency as a whole - by devaluing Bitcoin and Litecoin by sheer volume.
We see now in 2017 that all it did was create a new "Stock Market" with hundreds of "Penny Coins" for investors to choose from.
As an investment, most of these altcoins have just as good liquidity as Bitcoin. Most of the smaller exchanges offer altcoin liquidity through Dogecoin - which does an average of 2.2 Million dollars worth of volume on the Poloniex exchange alone; with an spread of a fraction of a penny I might add.
We see now in 2017 that all it did was create a new "Stock Market" with hundreds of "Penny Coins" for investors to choose from.
As an investment, most of these altcoins have just as good liquidity as Bitcoin. Most of the smaller exchanges offer altcoin liquidity through Dogecoin - which does an average of 2.2 Million dollars worth of volume on the Poloniex exchange alone; with an spread of a fraction of a penny I might add.
July 03, 2017, 01:45:16 PM
I agree. They behave very much like penny-stocks.
Which is a very bad thing when they are SUPPOSE to be a digital currency.
You all say this for failed currencies..
July 03, 2017, 08:02:54 AM
I agree. They behave very much like penny-stocks.
July 03, 2017, 07:22:41 AM
Yes, I think altcoins are like penny stocks but more risky and also high reward.
July 03, 2017, 07:10:52 AM
many have called altcoin market as Penny Stocks over the years and i kinda agree with them too but i also find a big difference between the two markets.
in Penny Stocks market, it is my understanding that you trade shares of real companies so there is some reality to it. there is a physical company that is doing something. there are jobs, employees, money going in an out, ...
but in altcoins you are trading mostly "tokens" and these are mostly virtual not real. granted there is the similar blockchain technology behind bitcoin and altcoins but the differentiating factor is usefulness. when there is absolute zero usage for most altcoins and nearly no usage for the rest then they become virtual tokens changing hand.
in Penny Stocks market, it is my understanding that you trade shares of real companies so there is some reality to it. there is a physical company that is doing something. there are jobs, employees, money going in an out, ...
but in altcoins you are trading mostly "tokens" and these are mostly virtual not real. granted there is the similar blockchain technology behind bitcoin and altcoins but the differentiating factor is usefulness. when there is absolute zero usage for most altcoins and nearly no usage for the rest then they become virtual tokens changing hand.
July 03, 2017, 05:18:29 AM
Penny stock is for me a great way to call shitcoins sold on YoBit, which is a bit like Jordan Belfort 
!
! July 03, 2017, 05:04:53 AM
The only time i have seen "penny stocks" brought up is when..
Profiteers are trying to legitimize trading digital garbage for profits
..and trying to make it come off as legit and acceptable.
http://www.investopedia.com/terms/p/pennystock.asp
Does this sound familiar ?
Profiteers are trying to legitimize trading digital garbage for profits
..and trying to make it come off as legit and acceptable.
http://www.investopedia.com/terms/p/pennystock.asp
Does this sound familiar ?
Quote
What Makes Penny Stocks So Risky?
Four major factors make these securities riskier than blue chip stocks.
1. Lack of Information Available to the Public
The key to any successful investment strategy is acquiring enough tangible information to make informed decisions. For micro-cap stocks, information is much more difficult to find. Companies listed on the pink sheets are not required to file with the Securities and Exchange Commission (SEC) and are thus not as publicly scrutinized or regulated as the stocks represented on the New York Stock Exchange and the Nasdaq. Furthermore, much of the information available about micro-cap stocks is not from credible sources.
2. No Minimum Standards
Stocks on the OTCBB and pink sheets do not have to fulfill minimum standard requirements to remain on the exchange. Sometimes, this is why the stock is on one of these exchanges. Once a company can no longer maintain its position on one of the major exchanges, the company moves to one of these smaller exchanges. While the OTCBB does require companies to file timely documents with the SEC, the pink sheets have no such requirement. Minimum standards act as a safety cushion for some investors and as a benchmark for some companies.
3. Lack of History
Many of the companies considered to be micro-cap stocks are either newly formed or approaching bankruptcy. These companies will generally have poor track records or none at all. As you can imagine, this lack of historical information makes it difficult to determine a stock's potential.
4. Liquidity
When stocks don't have much liquidity, two problems arise: first, there is the possibility that you won't be able to sell the stock. If there is a low level of liquidity, it may be hard to find a buyer for a particular stock, and you may be required to lower your price until it is considered attractive to another buyer. Second, low liquidity levels provide opportunities for some traders to manipulate stock prices, which is done in many different ways—the easiest is to buy large amounts of stock, hype it up and then sell it after other investors find it attractive (also known as pump and dump).
How is a Penny Stock Created?
A penny stock, like any other publicly traded stock, is created through a process called an initial public offering, or IPO. First, a company must file a registration statement with the Securities and Exchange Commission or file stating the offering qualifies for an exemption from registration. It must also check state securities laws in the locations it plans to sell the stock. Then, upon approval, the company may begin the process of soliciting orders from investors. Finally, the company can apply to have the stock listed on an exchange, or it can trade on the over-the-counter market, or OTC.
Small companies and start-ups typically issue stock as a means of raising capital to grow the business. Though the process is lengthy, involves mountains of paperwork and can be quite costly, issuing stock is often one of the most efficient ways for a start-up company to obtain necessary capital. Penny stocks are often the result of such ventures and can make for profitable but precarious plays for investors.
As with other new offerings, the first step is hiring an underwriter, usually an attorney or investment bank specializing in securities offerings. The company's offering either needs to be registered with the SEC according to Regulation A of the Securities Act of 1933 or file under Regulation D if exempt. If the company is required to register, Form 1-A, which is the registration statement, must be filed with the SEC and is accompanied by the company's financial statements and proposed sales materials. These financial statements need to remain available to the public for review, and timely reports must be filed with the SEC to maintain the public offering. Once approved by the SEC, orders for shares may be solicited from the public by accompanying sales materials and disclosures, such as a prospectus.
After initial orders are collected and stock is sold to investors, a registered offering can begin trading in the secondary market via listing on an exchange like NYSE or Nasdaq or trade over-the-counter. Many penny stocks end up trading in OTC markets due to the strict requirements for listing on the bigger exchanges. The majority of penny stocks do not meet such requirements, and the companies cannot typically afford the hefty cost and regulations involved. Sometimes companies make an additional secondary market offering after the IPO. This dilutes the existing shares but gives the company access to more investors and increased capital. It is important that companies issuing penny stock keep this in mind and work to gain value in the shares as they trade in the open market. Furthermore, it is mandatory that the companies continue to publicly provide updated financial statements to keep investors informed and maintain the ability for quoting on the over-the-counter bulletin board, or OTCBB.
The SEC's Rules for Penny Stocks
Penny stocks are considered highly speculative investments. In order to protect the investor’s interest, the SEC and the Financial Industry Regulatory Authority (FINRA) have specific rules to regulate the sale of penny stocks. All broker-dealers need to comply with the requirements of Section 15(h) of the Securities Exchange Act of 1934 and the accompanying rules to be eligible to effect any transactions in penny stocks.
(1) Sales Practice Requirements §240.15g-9
Before effecting any transaction, a broker-dealer must approve the investor's transaction (of specific penny stocks); meanwhile, the customer must give a written agreement to the broker-dealer for the same transaction. This measure has been taken to prevent manipulative, fraudulent practices in such investments. “Approving” the customer basically means checking his suitability for such investments. Approval should be given only after the broker-dealer has assessed the customer's investment experience and objectives along with his or her financial position.
(2) Disclosure Document §240.15g-2
A broker-dealer must provide a standardized disclosure document to the customer. The documents explain the risk factor associated with investing in penny stocks, concepts related to the penny-stock market, customer rights, broker-dealers' duties towards the customers, remedies in case of fraud and other important information which can be handy for an investor. The investor would be well-advised to go through this document so as to take informed decisions.
(3) Bid-Offer Quotations Disclosure §240.15g-3
It is mandatory for a broker-dealer to disclose and later confirm the current quotation prices and related information to the customer before effecting a transaction. If a broker-dealer doesn’t follow the same, it is considered unlawful. This helps the investor to keep a track of the price movement in the marketplace.
(4) Compensation Disclosure §240.15g-4
This rule makes the investor aware of the money being earned by the broker-dealer from a certain transaction. This can help the customer to judge if the broker-dealer has a selfish motive in trying to push a certain transaction.
(5) Monthly Accounts Statements §240.15g-6
A broker-dealer must send to its clients a monthly account statement which discloses details such as: the number and identity of each penny stock in the customer’s account; the dates of transaction; purchase price; and the estimated market value of the security (based on recent bids and purchase prices). Such statements must also explain the limited market for the securities and the nature of an estimated price in such a limited market. In cases where there have been no transactions effected in the customer’s account for a period of six months, the broker-dealer shall not be required to provide monthly statements. However, broker-dealers should send written statements on a quarterly basis.
Four major factors make these securities riskier than blue chip stocks.
1. Lack of Information Available to the Public
The key to any successful investment strategy is acquiring enough tangible information to make informed decisions. For micro-cap stocks, information is much more difficult to find. Companies listed on the pink sheets are not required to file with the Securities and Exchange Commission (SEC) and are thus not as publicly scrutinized or regulated as the stocks represented on the New York Stock Exchange and the Nasdaq. Furthermore, much of the information available about micro-cap stocks is not from credible sources.
2. No Minimum Standards
Stocks on the OTCBB and pink sheets do not have to fulfill minimum standard requirements to remain on the exchange. Sometimes, this is why the stock is on one of these exchanges. Once a company can no longer maintain its position on one of the major exchanges, the company moves to one of these smaller exchanges. While the OTCBB does require companies to file timely documents with the SEC, the pink sheets have no such requirement. Minimum standards act as a safety cushion for some investors and as a benchmark for some companies.
3. Lack of History
Many of the companies considered to be micro-cap stocks are either newly formed or approaching bankruptcy. These companies will generally have poor track records or none at all. As you can imagine, this lack of historical information makes it difficult to determine a stock's potential.
4. Liquidity
When stocks don't have much liquidity, two problems arise: first, there is the possibility that you won't be able to sell the stock. If there is a low level of liquidity, it may be hard to find a buyer for a particular stock, and you may be required to lower your price until it is considered attractive to another buyer. Second, low liquidity levels provide opportunities for some traders to manipulate stock prices, which is done in many different ways—the easiest is to buy large amounts of stock, hype it up and then sell it after other investors find it attractive (also known as pump and dump).
How is a Penny Stock Created?
A penny stock, like any other publicly traded stock, is created through a process called an initial public offering, or IPO. First, a company must file a registration statement with the Securities and Exchange Commission or file stating the offering qualifies for an exemption from registration. It must also check state securities laws in the locations it plans to sell the stock. Then, upon approval, the company may begin the process of soliciting orders from investors. Finally, the company can apply to have the stock listed on an exchange, or it can trade on the over-the-counter market, or OTC.
Small companies and start-ups typically issue stock as a means of raising capital to grow the business. Though the process is lengthy, involves mountains of paperwork and can be quite costly, issuing stock is often one of the most efficient ways for a start-up company to obtain necessary capital. Penny stocks are often the result of such ventures and can make for profitable but precarious plays for investors.
As with other new offerings, the first step is hiring an underwriter, usually an attorney or investment bank specializing in securities offerings. The company's offering either needs to be registered with the SEC according to Regulation A of the Securities Act of 1933 or file under Regulation D if exempt. If the company is required to register, Form 1-A, which is the registration statement, must be filed with the SEC and is accompanied by the company's financial statements and proposed sales materials. These financial statements need to remain available to the public for review, and timely reports must be filed with the SEC to maintain the public offering. Once approved by the SEC, orders for shares may be solicited from the public by accompanying sales materials and disclosures, such as a prospectus.
After initial orders are collected and stock is sold to investors, a registered offering can begin trading in the secondary market via listing on an exchange like NYSE or Nasdaq or trade over-the-counter. Many penny stocks end up trading in OTC markets due to the strict requirements for listing on the bigger exchanges. The majority of penny stocks do not meet such requirements, and the companies cannot typically afford the hefty cost and regulations involved. Sometimes companies make an additional secondary market offering after the IPO. This dilutes the existing shares but gives the company access to more investors and increased capital. It is important that companies issuing penny stock keep this in mind and work to gain value in the shares as they trade in the open market. Furthermore, it is mandatory that the companies continue to publicly provide updated financial statements to keep investors informed and maintain the ability for quoting on the over-the-counter bulletin board, or OTCBB.
The SEC's Rules for Penny Stocks
Penny stocks are considered highly speculative investments. In order to protect the investor’s interest, the SEC and the Financial Industry Regulatory Authority (FINRA) have specific rules to regulate the sale of penny stocks. All broker-dealers need to comply with the requirements of Section 15(h) of the Securities Exchange Act of 1934 and the accompanying rules to be eligible to effect any transactions in penny stocks.
(1) Sales Practice Requirements §240.15g-9
Before effecting any transaction, a broker-dealer must approve the investor's transaction (of specific penny stocks); meanwhile, the customer must give a written agreement to the broker-dealer for the same transaction. This measure has been taken to prevent manipulative, fraudulent practices in such investments. “Approving” the customer basically means checking his suitability for such investments. Approval should be given only after the broker-dealer has assessed the customer's investment experience and objectives along with his or her financial position.
(2) Disclosure Document §240.15g-2
A broker-dealer must provide a standardized disclosure document to the customer. The documents explain the risk factor associated with investing in penny stocks, concepts related to the penny-stock market, customer rights, broker-dealers' duties towards the customers, remedies in case of fraud and other important information which can be handy for an investor. The investor would be well-advised to go through this document so as to take informed decisions.
(3) Bid-Offer Quotations Disclosure §240.15g-3
It is mandatory for a broker-dealer to disclose and later confirm the current quotation prices and related information to the customer before effecting a transaction. If a broker-dealer doesn’t follow the same, it is considered unlawful. This helps the investor to keep a track of the price movement in the marketplace.
(4) Compensation Disclosure §240.15g-4
This rule makes the investor aware of the money being earned by the broker-dealer from a certain transaction. This can help the customer to judge if the broker-dealer has a selfish motive in trying to push a certain transaction.
(5) Monthly Accounts Statements §240.15g-6
A broker-dealer must send to its clients a monthly account statement which discloses details such as: the number and identity of each penny stock in the customer’s account; the dates of transaction; purchase price; and the estimated market value of the security (based on recent bids and purchase prices). Such statements must also explain the limited market for the securities and the nature of an estimated price in such a limited market. In cases where there have been no transactions effected in the customer’s account for a period of six months, the broker-dealer shall not be required to provide monthly statements. However, broker-dealers should send written statements on a quarterly basis.
July 03, 2017, 04:52:08 AM
I think we should stop calling them "Shitcoins" and recognize their real value and potential.
Just like any stock on the stock market - a company can turn a stock around and increase it's monetary value; the same can be said about altcoins.
Lets just call them "PennyCoins" instead.
Just like any stock on the stock market - a company can turn a stock around and increase it's monetary value; the same can be said about altcoins.
Lets just call them "PennyCoins" instead.
There is no way I will call a scamcoin or a shitcoin in any other way, if you don't like it, oh no, who gives a shit? A shitcoin is a shitcoin and it's distance from Penny Stocks is bigger than 10 light years.
Get over it and start calling things by their real name.
July 03, 2017, 04:43:19 AM
"Penny Stocks" at least have some value as part of liquidity of enterprise.
Altcoins have zero liquidity, no any papers, no bankruptcy law.
https://pastebin.com/ZUxTmR99
Altcoins have zero liquidity, no any papers, no bankruptcy law.
https://pastebin.com/ZUxTmR99
July 03, 2017, 02:51:50 AM
"Penny Stocks" is the oldest defense for shitcoin profits trading.
It fails on any and all levels.
You can compare what ever you want.. does not mean fuck all.
Want to compare things ?
Compare these so called "penny stocks" with a ponzi/pyramid/mlm scam.
Now you have some similarities.
It fails on any and all levels.
You can compare what ever you want.. does not mean fuck all.
Want to compare things ?
Compare these so called "penny stocks" with a ponzi/pyramid/mlm scam.
Now you have some similarities.
July 03, 2017, 02:22:26 AM
I think they are in a lot of ways. However once a coin reaches over a certain market cap there is room for real growth. It usually means its a good idea with people working towards development.
As long as you can't spend the coin anywhere what are you expecting to happen? This certain market cap is on a longterm also just temporarily.
what I wonder is that there are thousands of coins and ICOs or what it's called but until now nobody cared to look for easy ways to spend these "cryptocurrencies". And people still buy them in attention of what exactly? Can one really buy a coin like "piggy coin" and then believe "oh, in 5 years everyone is using piggy coin and i've made the deal of my life?"
By the way we were suppose to be getting away from centralization and companies and the traditional financial system like the stock marketAnd.. And..
I expect a whole hell of a lot better than trying to be like the stock market.
The stock market is a scammy joke itself also.
Heard of Martha Stewart or Bernie Madoff?
I expect a whole hell of a lot better than trying to be like the stock market.
The stock market is a scammy joke itself also.
Heard of Martha Stewart or Bernie Madoff?
Madoffs ponzi worked at least 40 years if i remember right. I don't expect that stupidity to take 4 years from now... instead i'm seeing it like the occupy wall street movement in '11... a bunch of people without any knowlegde what they are actualy doing but hoping for some miracoulus revolution... it's kind of sad... imagine what the manpower which was needed to create this bloated shit could have done for a better acceptance of btc, eth or whatever you can call a serious token... but now I fear that the financial system just waits a little more and then adopt the most sophisticated ideas for free and us them for control instead of freedom... i mean imagine something like a Ripple or anything the industry agree with becomes something like a "world standard money" - which would actually hold the worth because of the industry support - the financial systeme certainly will find ways to avoid taxes even more...
I hope I'm wrong... but it wouldnt surprise me...
July 03, 2017, 01:03:37 AM
they have always been the "penny stocks" and it has nothing to do with the marketcap or price or how much they go up and down. it is all about utilities. when the altcoins have zero usage and only exist to be traded or more accurately to be pump and dumped to make more bitcoin out of them, then they become worthless even with value hence they are "penny stocks".
the main characteristics that the altcoins share with penny stocks is the high risk and the short term reward and long term death.
the main characteristics that the altcoins share with penny stocks is the high risk and the short term reward and long term death.
July 02, 2017, 08:18:43 PM
Its a nice comparison and one friends of mine have raised with me before when talking about altcoins. Its obviously not quite the same thing but for everyday conversation it makes sense to use the comparison.
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