Are commodity-backed coins something to look out for in the future?
By backing altcoins with real-world value, such as URO and other examples, does that give the Altcoin an added advantage to all others?
Thoughts?
Topic: Stability in Perpetuity within Altcoin Markets: Reality or mere Possibility? (Read 783 times)
September 23, 2014, 11:56:54 PM
September 21, 2014, 01:44:44 AM
eUtopium ∞ [UPM] Food For Thought: Fairness & Stability in Perpetuity. Possible?
One of the biggest problems that altcoins face, as i have come to understand thus far, is the problem of "pumps and dumps". How is it possible for an altcoin to avoid being victim to an accelerated pump and dump which leaves the not-so-smart investors at big losses? It may not be their fault, or of the developers, but does it even need to happen?
Although many coins have shown that a fair & profitable ico distribution that caters to all parties involved is possible, and that stability in a coin can be achieved in the short term, it is unfortunately also highly unlikely for an altcoin's price to increase forever, and remain stable in perpetuity.
Sure, there will be dramatic ups & downs in the charts in the future, but what does it really mean for an altcoin to be stable? What does a pump & dump really mean? How can stability be achieved in the volatility of altcoins?
Is it possible for an altcoin to achieve stability & fairness in perpetuity? If so, how? And how can we learn from that to make an even better and more stable altcoin?
Please share your thoughts, for I have shared mine.
One of the biggest problems that altcoins face, as i have come to understand thus far, is the problem of "pumps and dumps". How is it possible for an altcoin to avoid being victim to an accelerated pump and dump which leaves the not-so-smart investors at big losses? It may not be their fault, or of the developers, but does it even need to happen?
Although many coins have shown that a fair & profitable ico distribution that caters to all parties involved is possible, and that stability in a coin can be achieved in the short term, it is unfortunately also highly unlikely for an altcoin's price to increase forever, and remain stable in perpetuity.
Sure, there will be dramatic ups & downs in the charts in the future, but what does it really mean for an altcoin to be stable? What does a pump & dump really mean? How can stability be achieved in the volatility of altcoins?
Is it possible for an altcoin to achieve stability & fairness in perpetuity? If so, how? And how can we learn from that to make an even better and more stable altcoin?
Please share your thoughts, for I have shared mine.
Last month, I brought up this topic within the UPM thread, pertaining to the ability of an altcoin to trade at a stable and fair price that caters to all vested interests.
As the altcoin economy continues to expand at an accelerating rate with over 5 new altcoins being released daily, it is not surprising to see bitcoins flowing in and out of new altcoins at an amazing pace as traders look for quick profits from rising prices, and selling into a cascading price fall as soon as one's stop loss is triggered.
Some coins have tried to overcome this by introducing mechanisms such as a "stabilization fund", using IPO funds to set "buy walls" for added support and investor confidence, or even creating algorithms that claim to achieve a stable market. Which of these solutions worked well? Are there any specific altcoins and case studies that we can learn from in the respect?
Is stability in an altcoin market possible forever? How can that be achieved, or is it merely a farfetched dream?
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