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Topic: Can a team control the price of their own coin for growth?? - page 2. (Read 393 times)

newbie
Activity: 11
Merit: 0

Hey guys, just joined the forum and going through the announcements I found this OptiToken project. The team and white paper seem legit, and I like the idea of owning part of a portfolio that trades automatically, as I have tried trading but I'm a noob and suck at it.

The thing I'm not sure about is they plan on making it a hyperdeflationary currency in a way I haven't seen before. With the portfolio trading, they will use profits to buy their own tokens on the market to create "buy pressure" and then destroy the tokens they buy to create scarcity. They say this will create price growth (even in bear markets) and value for holders long term, and meanwhile the underlying grows... As I see it they are basically controlling the price of their own currency to make it grow... Does this make sense? Is it doable? I like the idea of owning a token that can see this kind of growth but I'm not sure if it can work...

ANN is here: https://bitcointalksearch.org/topic/annico-optitoken-a-hyperdeflationary-automated-tokenized-portfolio-2975245


PS: Tell me if this isn't the place to post this and I'll move it!

Theoretically, a team could control the price of their coin through supply and demand.

Say a coin comes out at $5

Then, the team let's something leak that is bad news

Price drops down to $0.25

The team could then buy back their coin and create a more limited supply

Then the price would go up

Very easy in theory, but difficult to pull off in real life since the market is more than a two-point system...


 Cool Cool Cool


The supply - demand control is what they are proposing, but not through news manipulation. They don't want to make their currency drop in price, only make it appreciate. So they use profits from the trading portfolio or fund and buy on the main exchange, making price go up. Then they destroy the tokens. So it's not so hard as manipulating with bad news. The thing is if they can keep up the trading profits... for now they have (if their live portfolio doesn't lie) but I'll watch to see how it goes!

I found an image that explains it but it seems my account is too new. It's in this link:

https://medium.com/@OptiToken/unique-value-proposition-strategic-buy-pressure-and-strategic-scarcity-9da9f645e971


well Coinmetro exchange which is an upcoming exchange planned doing same thing with their exchange, they will buy their tokens back when the price is going down and put it back to sale when their scarcity. The deal is cool to me but I don't know how they will implement it, until it is test and prove working, i am not investing.


Well this is what Optitoken is proposing I think. The thing is they will be making price rise by buying from the profit generated by the portfolio trading, which is the underlying value. Yeah, I'm still doubting. I'm on the telegram channel now to see how they are handling stuff.


Yes, they definitely can. The best way is if the economics and math behind the token is designed in a way that it stimulates natural growth with time. Provided that adoption and demand of the token increase.

The team can also manipulate the price by bying or selling its own tokens on exchanges. For example, Canya recently announced they will buyback a portion of their tokens.

Legit projects should care about price movement and early investors and guarantee a min low of the price on the exchanges.


Thanks for the other example, I'll check to see how it's going for them... I agree with that last part. I already bought an ICO that just tanked on exchange... this seems to solve it by creating stable prices through a sort of distribution of value from portfolio to holders. Still have to trust them though.


It will depend on how many bitcoins the team have saved up for the purpose of buybacks and also how large the daily trading volume is.  If the volume is low then yes, it is very possible to keep the project from drowning but if the trading volume is very high, it will take much more funds to keep it above waters and that's not even a guarantee. 


Well in this case the buybacks will come from trading profits of the portfolio, so they should be regular and in theory also work in bear markets like this one, as the live portfolio shows profits... which for me is the most attractive cause I can't trade (bull or bear lol) and the coin will hold when others are down...
member
Activity: 364
Merit: 10
take & Vote or Become a IoTeX Delegate!
well Coinmetro exchange which is an upcoming exchange planned doing same thing with their exchange, they will buy their tokens back when the price is going down and put it back to sale when their scarcity. The deal is cool to me but I don't know how they will implement it, until it is test and prove working, i am not investing.
member
Activity: 210
Merit: 10
Of course a good example is the XRP coin which has the centralized banking structure from the banks,they can easily dump most of its supply so that they will make billions of dollars from these newbie investors who bought their coin,that is why you need to check the distribution of an coin you are investing to so you would know how these people will use most of its supply.
hero member
Activity: 1470
Merit: 555
dont be greedy
it can
they can raise and lower prices with big money and news updates for their coins
good news will result in price increases
bad news will result in lower prices
if good news is announced after bad news, then everyone will easily earn money
full member
Activity: 303
Merit: 100
POS / PRIMENODES
I don't think this is possible. How deep are going to be their pockets, how much money they think they are going to raise? Are they going to use all of them to correct the market? It looks like a bad business to me.
member
Activity: 210
Merit: 10
WINSTARS - We are changing the face of gambling
Yes infact there are few coins who are doing that already,most of the coins has the most of the supply because they are the ones who created these coins and they can do everything they wanted to do,creating an altcoin  is surely a profitable way to get rich faster than the traditional investors that is why we are having new ICOs everday.
member
Activity: 532
Merit: 10
BITCOIN IS THE CURRENCY OF THE GLOBE
Yes team has a level of control on there coin price, base on the volume in circulation, compare to what they are holding as there stake, also implement ation of there roadmap can also help them to control the coin for growth.
full member
Activity: 294
Merit: 101
Streamity Decentralized cryptocurrency exchange
yes but for a limit of time only like if you buy your own coin in high price but you need a lot of money by doing because think if you buy it in high price and if they buy your coin in low price of course it will drop even you buy it in high price,the best example of it is the nano or xrb coin in past year the price of that is only just a little but now because of their faucets the price of it go really high now and that's their tactics like good move to do even you spend a lot of time,money in your coin salute to the developer of xrb or nano now and they not buy it but only develop by so many xrb or nano now in their own faucets i think the developer of it is really rich by now
legendary
Activity: 1932
Merit: 1003
It will depend on how many bitcoins the team have saved up for the purpose of buybacks and also how large the daily trading volume is.  If the volume is low then yes, it is very possible to keep the project from drowning but if the trading volume is very high, it will take much more funds to keep it above waters and that's not even a guarantee.  
member
Activity: 182
Merit: 10
Revolutionising Marketing and Loyalty
Of course yes,especially when the team has the most of the coin supply just like what the centralized coin XRP is ,the founders and the develoeprs hold most of its supply that is why its price is manipulated,it cant rise too much because most of these people are slowly dumping these supplies.So you need to know how the team is doing with the supply that they have so your coin will be predictable.
full member
Activity: 490
Merit: 100
This idea is not strange to any market watcher and trader, Project team of any asset control the price of their coin, token even shares! But the project in question are very sincere with their community from the start in been transparent about their module superandi!
sr. member
Activity: 406
Merit: 251
Hey guys, just joined the forum and going through the announcements I found this OptiToken project. The team and white paper seem legit, and I like the idea of owning part of a portfolio that trades automatically, as I have tried trading but I'm a noob and suck at it.

The thing I'm not sure about is they plan on making it a hyperdeflationary currency in a way I haven't seen before. With the portfolio trading, they will use profits to buy their own tokens on the market to create "buy pressure" and then destroy the tokens they buy to create scarcity. They say this will create price growth (even in bear markets) and value for holders long term, and meanwhile the underlying grows... As I see it they are basically controlling the price of their own currency to make it grow... Does this make sense? Is it doable? I like the idea of owning a token that can see this kind of growth but I'm not sure if it can work...

ANN is here: https://bitcointalksearch.org/topic/annico-optitoken-a-hyperdeflationary-automated-tokenized-portfolio-2975245


PS: Tell me if this isn't the place to post this and I'll move it!

Theoretically, a team could control the price of their coin through supply and demand.

Say a coin comes out at $5

Then, the team let's something leak that is bad news

Price drops down to $0.25

The team could then buy back their coin and create a more limited supply

Then the price would go up

Very easy in theory, but difficult to pull off in real life since the market is more than a two-point system...


 Cool Cool Cool
legendary
Activity: 1176
Merit: 1005
Decentralized Asset Management Platform
Almost every ICO team have 5-25% of tokens reserved for them. If the tokens are not in escrow, they easily could use them to manipulate the market.

Another option they have is to hold the bounties, sell their tokens, release the bounties (leading to price drop) and then buy-back their tokens again like nothing happens.
full member
Activity: 574
Merit: 101
Yes, they definitely can. The best way is if the economics and math behind the token is designed in a way that it stimulates natural growth with time. Provided that adoption and demand of the token increase.

The team can also manipulate the price by bying or selling its own tokens on exchanges. For example, Canya recently announced they will buyback a portion of their tokens.

Legit projects should care about price movement and early investors and guarantee a min low of the price on the exchanges.
member
Activity: 182
Merit: 10
Always read white paper. There you will find the answer. How much money does the project developers have? If it is more than 51%, yes, they can manipulate the price. If the tokens are frozen and gradually unblocked in small quantities during the year, then the possibilities of manipulation are minimized.
Some of the project arent too sincere to put all proper informations in the whitepaper,some of these has a lot of supply that most of the people didnt know,so reading whitepaper wont have any effect if these people has most of the supply of their coin,they can control the price of their coin in no time,these people arent transparent most of the time.
full member
Activity: 225
Merit: 103
Always read white paper. There you will find the answer. How much money does the project developers have? If it is more than 51%, yes, they can manipulate the price. If the tokens are frozen and gradually unblocked in small quantities during the year, then the possibilities of manipulation are minimized.
member
Activity: 196
Merit: 10
Protocol and Token to Reinvent Skill Validation
Not only those teams,existing coins has a lot of manipulations especially those coins which the supply are being use to manipulate its price,for example XRP most of the supply is in the founder,develpers etc they can easily dump those coins when the market has gone bull run,the result? instead of getting price improvements it will go sideways then fail at end leaving those small investors rekt.
sr. member
Activity: 1442
Merit: 265
Yes they can especially if they have kept a large chunk of coins for themselves after the ico, transparency is the key, i personally do not like icos where teams reserve big percentage for themselves, team and advisors as they can manipulate and control the market anytime they want.
newbie
Activity: 210
Merit: 0
Practically all companies can do it.... Only for what they should raise the price of the token. I saw the company which don't want to join them the new exchanges and so everything arranges.
newbie
Activity: 63
Merit: 0
Hey guys, just joined the forum and going through the announcements I found this OptiToken project. The team and white paper seem legit, and I like the idea of owning part of a portfolio that trades automatically, as I have tried trading but I'm a noob and suck at it.

The thing I'm not sure about is they plan on making it a hyperdeflationary currency in a way I haven't seen before. With the portfolio trading, they will use profits to buy their own tokens on the market to create "buy pressure" and then destroy the tokens they buy to create scarcity. They say this will create price growth (even in bear markets) and value for holders long term, and meanwhile the underlying grows... As I see it they are basically controlling the price of their own currency to make it grow... Does this make sense? Is it doable? I like the idea of owning a token that can see this kind of growth but I'm not sure if it can work...

ANN is here: https://bitcointalksearch.org/topic/annico-optitoken-a-hyperdeflationary-automated-tokenized-portfolio-2975245


PS: Tell me if this isn't the place to post this and I'll move it!


If you think projects pumping and manipulating their own prices one way or the other is new than you’re sadly mistaken my friend.. I will say that at least opti is doing in a positive positive manner only.. also the transparency is certainly going to assist them if they can maintain that element.
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