Topic: Winklevoss: Trying to pump before they dump? - page 2. (Read 7520 times)

Sure there is.  Administration fees.  They could setup a fund completely independent of their personal holdings and buy bitcoins on the open market.  They could put their funds in the ETF, and buy/sell for other people via the ETF without touching their own shares at all.  They'll make a profit on admin fees regardless of whether they sell their personal stash.

There is no purpose in setting up the fund if they don't intend to sell the shares. They don't have to sell all of their shares, but they have an incentive to sell a large portion.

Yes, this another major problem for bitcoin, however they cant solve it, as they are tiny in comparison to some other early adopters. We already have a huge one sided distribution in favor of early adopters, who hold over 50% of the bitcoin supply. This design was built in on purpose, Satoshi himself doesnt seem to mind otherwise he would have designed it differently. Again I find it peculiar to say the least, that they are so convinced of the $40000 price tag but already want to dump.

To me the explanation that they just want OUT is more straightforward than what you point to, as they cant fix the design flaw (if they think distribution is one).

Why would some rich entrepreneurs like them not feel the same way about BTC that we do?

There is no purpose in setting up the fund if they don't intend to sell the shares. They don't have to sell all of their shares, but they have an incentive to sell a large portion.


You don't know that they actually expect it to go that high. They may be telling everyone $40k, but actually plan to dump at $10k.

Have they said what they actually plan to do with their holdings? Are they going to keep them for x amount of time and then sell, or what?

If the Winkle says he expects them to rise to 40k, surely they'll be keeping them to nearer that figure?

That's preposterous and you know it OP.

PUMP:

"The brothers are unsurprisingly bullish on Bitcoin. Cameron’s conservative bet is that its US dollar valuation will surpass $40,000 per coin — a potentially colossal figure — as he explained in a response to one Reddit user: "small bull case scenario for Bitcoin is a 400 billion USD dollar market cap, so 40,000 USD a coin, but I believe it could be much larger. When this will happen, if it happens, I don’t know, but if it happens, it will probably happen much faster than anyone imagines.""

DUMP:

"The twins are in the process of setting up the Winklevoss Bitcoin Trust, a listed fund to manage their Bitcoin wealth and bring greater legitimacy to the virtual currency. Papers for the initial public offering were filed in July, but the final decision is still pending. Due to regulations, Cameron was unable to discuss the trust in the AMA"

http://thenextweb.com/insider/2013/12/15/winklevoss-twin-says-bitcoin-valuation-will-top-40k-plays-down-silk-road-closure/#!p2vds

"In a move that could come to mark a major new era for the virtual currency, Tyler and Cameron Winklevoss have filed to float their stash of Bitcoins on a conventional stock exchange. The former Olympic rowers have lodged papers for a $20m initial public offering of the Winklevoss Bitcoin Trust, which holds their Bitcoin wealth, and would be managed by the Winklevoss' investment fund, Math-Based Asset Services. "

http://www.telegraph.co.uk/finance/currency/10157710/Winklevoss-twins-20m-plan-to-make-Bitcoin-mainstream.html

Obviously they want the price to be as high as possible, before they dump via this fund. This is a clever tactic, as the dumping via a trust can support the price (wow new trust, look at the adoption) and you can get rid of your coins. If you dump on an exchange it leads to total collapse.

If they are so convinced of this high price, why sell the position. Sounds like a scam to me.

Of course he sounded like this, he wants you to buy them after all.

Again, fact is that they are dumping their coins via this trust. They are selling a major part of their stack. If they believe the 40.000 dollar estimate is conservative, why sell?

Yes, this another major problem for bitcoin, however they cant solve it, as they are tiny in comparison to some other early adopters. We already have a huge one sided distribution in favor of early adopters, who hold over 50% of the bitcoin supply. This design was built in on purpose, Satoshi himself doesnt seem to mind otherwise he would have designed it differently. Again I find it peculiar to say the least, that they are so convinced of the $40000 price tag but already want to dump.

To me the explanation that they just want OUT is more straightforward than what you point to, as they cant fix the design flaw (if they think distribution is one).

Dumping as soon as the etf comes live. The etf is the vehicle for the twins to dump their holdings.

Dumping as soon as the etf comes live. The etf is the vehicle for the twins to dump their holdings.