As mentioned in my earlier post, the release of the visa cards will not have a significant effect on the price of MNX.
The timing of their release is (I think unintentionally) going to coincide with the tail end of the first round of quarterly parkings. This will be fun to see... The natural market correction as sell pressure is reduced will cause the price to rise a little, and people will very incorrectly attribute this to the release of the visa cards. When the price dips again soon after there will be much alarm and I bet a weeks worth of posts claiming the project has failed.
Those people, myself included, who are excited about these cards and keen early adopters will no doubt already have sufficient holdings of MNX to fulfill the cards' minimum balance requirements. I would bet further that most of the 1000 odd people already fully signed up, ready to go, are holding back that reserve of minex from their long term parkings.
In short, most of the people who are ready to go already have the MNX required. We don't need to buy any more MNX when we get the card.
The next group of card users will be those already in knowledge of what's going on, already expressing interest and enthusiasm on the forums... Already holding decent amounts of MNX waiting to pull the trigger. These people also won't need to buy any significant amount to get up and running.
Now let's think about the spending action of the cards...
After users have dropped on a bit of MNX to price it works and we are all up and running... We want to spend some of our hard earned crypto right?
Well... The go-to coin for anything cross exchange is BTC. Everyone knows it and is familiar with it and has had to use it in some form.
If I want to flip any of my crypto holdings on to the card balance, I will use BTC directly. And so will anyone else. Why would I bother to FX it again in to MNX, pay trabsfer and exchange fees to do so, and hold a balance in a coin which is performing poorly (right now, see my earlier post). It would make far more sense to drop BTC straight on to the card instead.
The % incentive of charging and spending in mnx compared to btc is simply not enough right now to counter the (artificially) poor performing mnx and overheads required to do so. One day it will be, but right now it's certainly not.
So we won't have the big surge in buy volume required to raise a market price. Not yet.
An argument often put forward in previous discussions is that more people will learn of the cards, want to get involved, will require MNX to do so. But I don't think it will be so much. The requirements of a regular (blue) or gold card are not so significant in value.
And not everyone in the crypto community (which is still in its entirely a very small and niche market) will jump on board. Those that do will not be all at once. It will be naturally distributed over time... Which is exactly the behaviour we need on the sell side also but don't have.
So we will have a bit of a stabilising force which will be good. But it won't be a big enough force to drive the market. First we need to wait for the artificial mechanisms mentioned in my first post to dwindle and stop taking effect. The cards will help to reduce the decline, but not counter it.
Thank you for sharing your point of view and explanation.
I agree with you but not fully. You think that cards will be something which will help but I am not so sure. There are already other projects with working cards (Investa) and they just finished ICO. I assume that in the near future there will be no problem for any project to issue a card. That is why this will be so common that add no value to the project.
Would be great to see such a post from the Minexcoin team member.
I will ask what is your opinion about this broken algorithm?
I am very angry because when ICO was ongoing I found a review where a Youtuber broke this algorithm in the pieces and proved that this is pure bullshit and doesn't work at all. When I posted about this on Telegram a shitstorm started. They banned me and try to scare that they will not pay my bounty if I continue to spread FUD because the algorithm is good and working. Today we all know that this was a real bullshit.
