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...
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 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.
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.
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...