Post
Topic
Board Service Discussion
Re: BFX tokens; worth anything? When?
by
cryptopunk
on 11/08/2016, 13:04:45 UTC
We are seeing a bank run being traded. There are two basic scenarios:
1. People panic, start withdrawing all they have in BFX, this puts presure on their baking relation and USD reserves, delays pile up, people start hitting the exchange to get BTC at any price, and withdraw that instead, a large BTC premium is seen on Bitfinex, the exchange becomes useless for outside traders and the revenue and deposits drop, BFX tokens plunge to zero, eventually the lawyers take over and pick the remaining meat off Bitfinex bones, with some people recovering some parte of their money in a few years time.
2. People keep calm, Bitfinex keeps functioning and keeps generating revenues, withdrawals and deposits work fine, BFX tokens recover to 0.6-0.9 their nominal price in a few months, most people get almost all their money back by selling BFX, some traders make a profit when Bitfinex redeems the BFX at nominal price a few years down the road.

It's entirely up to us, the investors, how it's going to be. For the moment the market seems to think we will have scenario 2. A coordinated lawyer attack might still turn it into scenario 1.