Because instead of placing buy orders at perceived market value...savvy buyers place orders below market value knowing that autosellers will dump into their buys at certain intervals. The downside to this is that it becomes a chain reaction that can quickly drop the market price -- especially if a particular currency isn't active enough. I've seen buy orders that have been sitting there for weeks that were 10% of market value when they were placed...and because the investors were holding (but not buying) there weren't enough buy orders out there...and the autosells dumped in all the way down to these old, ridiculously low buy orders. Suddenly, that becomes the new market value...and miners begin to abandon the coin to invest their hash power in more profitable currencies. Before you know it...this situation all but completely killed the currency in question. Obviously, with a high enough volume of buyers, this isn't going to happen...but the more currencies that get added the thinner everything is spread and it's been picking off the currencies in the lower tiers for weeks. Buyers aren't going to place orders at 10X the market value -- why would they? Especially when the incoming autotrades are predictable for the most part.
If you don't understand it at this point, I'm not sure how else to explain it. In that case, however, I will say that altcoins may not be the best investment for you. This is pretty basic stuff.
aww you poor guy you see I'm trying to help you out here , let me finish you sentence up there..~~~~
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this situation all but completely killed the currency in question. Obviously, with a high enough volume of buyers, this isn't going to happen...but the more currencies that get added the thinner everything is spread and it's been picking off the currencies in the lower tiers for weeks, ~~ wait I've had an epiphany , and , and then eventually the useless currencies with no value will get caught into a trade and market sector at which they belong which is , after all useless , and then other currencies with potential value will rise and move forward as they directly trade in the market of confidence/relevance .... wow i got it now digitalindustry thanks for the help ! what was i worrying / complaining about ?
If you fail to see the problem, you're part of the problem. If it's obvious that a dev is creating a coin solely to pump and dump it at first opportunity and disappear...and they're doing the same thing over and over again...it's an issue. The exchanges that are listing these coins are enabling this to continue. Nobody is making me mine or buy these currencies (and I don't) -- you are correct there.
indeed - you don't but you complain , why because other do , this is interesting ? lets see what else you say...
However, whether you understand why or not, these currencies are indirectly devaluing all altcoins. Money and/or hash power that would have normally been invested in quality currencies with real devs and a future is instead dumped into the pockets of the bums that have scammed the investors.
There is no easy way for the average person to fully educate themselves because, as your responses in this thread clearly indicate, a lot of people doing the educating don't even understand the market.
contrary i believe i understand just fine - lets have a look at what you said , so you are contesting that though some magic of misspelling and blatant scamming that nefarious devs are ruining alternative currencies ? by the devious mis-allocation of funds, though trickery - and its just that I don't understand because some stupid people invested in fartcoin. ?
and because Cryptsy lists Fartcoin that gives it the legitimacy of investment you say ?
you probably need to maybe get out a little more - join a sporting group - you have deceived yourself that exchange = success , so maybe you just have a little more to learn?
I feel like an exchange that has as much activity as Cryptsy should do more research before adding currencies -- people see a currency hitting the exchange as a sign that it is legitimate. This is clearly not the case -- you know that, and I know that -- however, not everybody does. Money and hash power is already spread pretty thin -- it's time to improve the networks and values of legitimate currencies instead of currencies that will soon be abandoned.
Again you don't see the bigger picture do you ? - I spoke about this a long time ago and spread the warning to BTC-e and i expect they saw it themselves , that they would de-legitimize themselves if they didn't bring in a little quality control - they got burned with Chinacoin and probably regret the listing of FTC , but those were early days so , its by the by , Cryptsy has a different business model they don't have fiat transference, and even if they did - if you don't like then don't trade there , but you can't cry about it, if more people feel that Cryptsy is listing junk then if i effects their user base then they will change that , again this is the market working , see how there is no regulation here.
and if the market of hash power is spread thin (even though you are wrong) , that's because people are not mining scams any longer - which of course is generally a good thing you could suppose
wow.
It's simple -- they create a currency that they knew from day 1 they would abandon as soon as they could dump their holdings for a profit. Initially the scam involved a sizable premine...but eventually Cryptsy tightened their requirements and they used different approaches (for example, soft launches followed by them and others in on the scam mining as much as possible. This growing network speed also helped attract new victims.) To take it a step further, there are a number of usernames posting about these currencies and pretending to support them/etc. People are screwed because they are being duped -- the entire thing is a charade with the goal of getting the currency listed on Cryptsy, everybody that's in on it dumps once it's pumped to the agreed upon price, and they all abandon the currency (dev included) and move on to the next scamcoin where they repeat the same process. Lather, rinse, and repeat. Unfortunately there are always enough people roped into the scam that it works...and by listing these currencies on Cryptsy, Cryptsy is effectively enabling the scam.
The problem here is that there is so much misinformation, confusion, and inflammatory banter that it's difficult for people to see the truth. Look at your post -- you're implying that the only way for a coin dev to screw people over is to kidnap them and force them to invest? How is that helpful to anybody reading this and attempting to learn from it?
How in the hell can anybody be against doing what we can to limit dishonesty and deceit in a financial market? I don't understand your motivation for arguing against some common sense ways to improve the integrity of the altcoin market.
well , you see - bholzer , i'll talk slowly here , if i was going to invest
my money in something , i would probably at very least have a look at its history - maybe even go out of my way and look at the thread where it was originally announced , and you know what if i couldn't find all the information that i needed , you know what .....?
I wouldn't invest .
: O : O : O
: 0 : 0 : 0^^
they are shocked looks, in case you didn't notice.
i know this is revolutionary - and not adhering to this principal is ruining "alt-currency" but there... I said it.
you know what , if I it looked like a scam i wouldn't mine it either !
: 0 : 0 :Omight even post on the topic and point out the particular scam
: 0 : o : O {please hear accompanying ooooh aaaaaah sounds after each shocked look}
