Right now it's worth ~200 satoshi (I said that right?).
yes!
I'm a newbie....
...The product looks solid, the team looks good, etc.
I'm sorry but these two statements contradict each other!
how do you know it is solid? how do you even know the team and know they are good if you are new to this?
I am not so familiar with the project to say if you are correct or wrong I am just curious to know how you came to this conclusion.
It was worth ~20 satoshi a month ago.
it was 4-5 satoshi in May
Speculation has driven it up, correct?
yes and no.
it is called a pump and dump. these markets you see in altcoins world are all small and heavily manipulated. there are whales with lots of money and groups with lots of idiots following them who do this. they buy some random altcoin until the price is up and as soon as others join in and price goes up to the near maximum possible they start their selling aka dumping and price drops:
So theoretically it could fall to that level again if everyone sold.
also known as dumping.
But why would they? I imagine it's very quantitative but would it be possible for whales to just kill its value and drop the price ten fold (pump and dump)? That aside what else could happen? The developers could get into a scrap and the project falls to the wayside? BTC tanks? What could cause a "worse case scenario"? Appreciate any insight!
why do you think anybody buys an altcoin? think about it for a little while.
... they all do it as an investment and because there is no usage for any of the altcoins despite their supporters pretending to be. so just like any (short-term) investment the investors want to take profit. so they sell. and as I explained it is pump and dump, so the pumpers WANT THEIR MONEY OUT to do the same with another coin.
you go in on 4 satoshi then pump it to 200, there is no room to pump more, so you get out and get in the next 4 satoshi coin and pump that to 200 and make the same profit and next and next.
and these small coins are not affected by bitcoin price at all.
