Re: (LVG) LVGCoin - Developing an altcoin margin trading platform
This is a margin trading platform, people borrow money with the intent of making profit with it so they can keep the profit. typically there has to be a lender in this scenario and in this case the lvg team will be the lenders, if you are making a bad trade it eats into your balance on the platform and when you reach 0 the position is closed as you no longer have the funds to keep the trade open. say you had 1btc in your account, made a really bad trade and lost the 1btc, if you were holding enough lvg to unlock the 20% feature you would be given 0.2btc of your loss back. again there isnt a need for extra funds in that scenario as the funds came from the user who is getting the 20% back.
You just admitted that the LVG team will be reimbursing 0.2 BTC out of your own pocket.
winning trader:+1 BTC
losing trader: -0.8 BTC
LVG team: -0.2 BTC
Who needs a sustainable business model when you're an outright scam from the start
Did you not think this through?
when margin trading its the trader vs the lender. that trader can win or lose when they play the market. if that person has the 20% off the loss feature on thier account then they arent losing quite so much to the lender. the "winner" in this scenario isnt necessarily a winner either because they still have to deal with the market and it can still go against them. the chances of someone else making the exact trade but with the alternative outcome is very low. also the feature could only be possibly avaliable to 8 people so its not a huge an issue as its been made out to be, i have said that if people are against this feature we remove it.