All kinds of bitcoin companies and investments would be in trouble if someone decided to waste 100s of millions trying to send the price right down. In practice that would be very difficult to do for long. Critique by all means, but be sensible about it. Yes it may happen but that is an extreme case. If one believes it too likely, one would not invest in bitcoin at all.
Asking about a basic hedging strategy is fine but there has already been a reasonable amount of discussion. The reality is that NEOBEE does rely primarily on a stable or rising exchange rate in the short and medium term. If bitcoin falls much in the medium term then NEOBEE will fail, but then it also likely means bitcoin has failed. It's also like asking what happens if lots of people decide to empty their bank accounts - a bank run will take any bank out. NEOBEE are no different. If the price falls too much for too long before they have got sufficient resources put away and then they can't fulfill the obligations, they will have a problem.
Your other question is a pure practical one awhich one can answer by properly reading the materials and posts.
This is beginning to read like an exercise in trolling. In the securities section. Again. For a change.
Asking about a basic hedging strategy is fine but there has already been a reasonable amount of discussion. The reality is that NEOBEE does rely primarily on a stable or rising exchange rate in the short and medium term. If bitcoin falls much in the medium term then NEOBEE will fail, but then it also likely means bitcoin has failed. It's also like asking what happens if lots of people decide to empty their bank accounts - a bank run will take any bank out. NEOBEE are no different. If the price falls too much for too long before they have got sufficient resources put away and then they can't fulfill the obligations, they will have a problem.
Your other question is a pure practical one awhich one can answer by properly reading the materials and posts.
This is beginning to read like an exercise in trolling. In the securities section. Again. For a change.
Good response but you are not seeing the big picture which is that neobee is not any other btc stock, and, global finance is a players game. If neo took a significant portion of peoples savings in Cyprus then it will be a globally significant event. Neo would be destroyed over a period of months through market manipulation of the price of btc while the banking system created its own neobee type infrastructure and made plans to adopt btc into the mainstream.
It might well cost a few hundreds of millions but have you seen how much a global bank turns over never mind the funds available to the Fed. All that money could be made back with a pump on btc.
There may be room for new btc based banks to evolve into the fixed, monopolized market that is global finance but only if they are immune or safeguarded from attack from the old guard. Neobee is not safe because a temporary dive in btc can kill it. It has no firewall. For the big boys a temporary dip would be child's play. So if neo is a success it will be crushed into dust. They are playing in the big boys sandpit. And these boys are amongst the dirtiest, most ruthless and immoral operators on the planet.
