For all of you lending out thousands of Monero especially at really low rates... just think about it for a moment. Right now we have about 190,000 XMR available to short and a good share of them are available at VERY low rates. While Dash on the other hand has only about 17,000 and yes I know some are currently shorting Dash but, even when their price was much lower the numbers were still about 8 or 9 to 1. That makes it extremely easy for anyone with some btc to short Monero at a very low cost and in big numbers and drive that price down.
The MasterNode scheme does one thing effectively and that is remove huge numbers of coins from the market for trading AND for lending, thus raising the cost to short and making it easier to keep a pump going to these really extreme levels.
Please re-examine your lending habits, if we all quit squabbling over the scraps maybe Monero would make some headway as far as price goes.
And yes that include you TC!
There is more to this, but is is fair to say that low XMR interest rates may be in part at least fuelling the Dash bubble. I am going to start with the changes in the Dash masternode network.
http://178.254.23.111/~pub/Dash/Dash_Info.html What is very significant is the drop in the number of masternodes ~500 masternodes or 500,000 Dash just before the start of the Dash price rise. Now quizzie made the argument that these masternodes were kicked off the Dash network due to a software upgrade. That was fair enough at the time but the reality is that these masternodes have for the most part not returned to the Dash masternode network. So I am forced to look again at my original argument leveraged longs.
At the time I'm posting this Dash is @
45.35$. Anybody know if this is organic or if this is just a bubble?
Dash has been in an uptrend for a couple of months now, resulting in a dramatic price break-out. Time will tell if this is indeed a bubble that could burst at any time
or if it is due to an organic rise.
Personally though i think Dash deserves that third rank on coinmarketcap as it kept developing its cryptocurrency from the moment it was launched till this very day.
Dash Evolution is also progressing nicely with an Alpha release scheduled for mid summer 2017. This will bring Dash massive scalability and a distinct focus
on the ease of usability.
Link :
https://www.dash.org/evolution/Maybe some large whales are taking positions in Dash right now because of that, or maybe there is a stronger tendency to diversify into promising altcoins ?
Who knows....
... or a large leveraged Dash long position. Ever wondered why 500 Dash masternodes were removed from the Dash masternode network on February 26, 2017 just before the breakout?
http://178.254.23.111/~pub/Dash/Dash_Info.html My interest in this by the way is the coin that is a likely candidate for the corresponding short position.
Edit 1: Just a theory.
https://bitcointalksearch.org/topic/m.18068376Edit 2: By the way Dash does deserve congratulations on Bronze
Those 500 Dash masternodes were actually kicked from the netwerk as a spork got activated that day that ruled that only 0.12.1 masternodes were allowed on the netwerk. Its part of Dash controlled hard fork into update 0.12.1
First the spork activation can make a good cover for someone planning such a leveraged long with minimal impact on the market. One still has to ask the question where did the 500,000 Dash go. The price moved up sharply so it was not dumped, furthermore there is very little Dash available for lending. This leaves collateral for a leveraged longs as a reasonable plausible alternative. Such positions have up to now being very profitable.
So how does one set up a Dash leveraged long position on Poloniex for example?. One deposits Dash into Poloniex and then borrows another coin to sell short for more Dash. It is here where Monero comes in. The combination of very low Monero interest rates, a very large availability of Monero for lending, a highly liquid Monero market, together with a bearish bias until the beginning of March made Monero a very attractive candidate for the short side of the long Dash position. Furthermore as long a Dash rises at a faster rate than Monero the Dash / Monero spread is fine and in fact the rising Monero price may serve to further fuel the Dash bubble. The key market to watch here is DASH/XMR
https://poloniex.com/exchange#xmr_dash Dash is currently trading for ~5 XMR this is below the ~7.8 XMR in August of 2016 for example. So the Dash bubble may still have some legs. The net result of all of this is that the Dash bubble may be fuelled in part by low Monero interest rates, and the development of sizable Long Dash / Short Monero positions.
Like any bubble the current Dash bubble will eventually crash and the pigs will go to the slaughterhouse. The impact on the broader Monero markets would be: A rising default risk of Monero loans collateralized by Dash and a significant overall Monero short squeeze. Should this occur those who have
taken delivery of their XMR should be in the strongest position to profit from the resulting blood on the streets.
THIS! Spot on analysis. So this is probably the reason why in the previous year(s), when Dash price goes up, Monero price goes up after after a month or so.
I hate to think it this way, but if you plot Leader-Laggard in technical analysis, does this means Dash is leading Monero, of course, referring to price only?
