Quote from: Algojar on April 09, 2017, 01:46:59 AM

Hi,

I've came across this indexed asset and it really interested me. It gives strong weight to the altcoins and i believe that with time, the altcoins becoming more relevant, the Index could be a good measure of the crytomarket in general. But for me the problem is that as I write this message, the real value of the index is around 1100000BTS but the lowest price to buy is around 1500000BTS.
I don't understand why you allow such discrepancy between the real value of your product and the market value. I understand you idea of premium and how in the long run it may be worth it. I believe you shouln't allow so much premium, since it is only speculative. It runs in the belief that the coins will become more valuable.

Finally, it is really strange that you want people to pay more than the intrinsic value, 1.4 times more. I seems that this practice only benefit the current holders of the asset while penalising the buyers. Another evidence is that the forced settlement would not allow the same phenomena to occur the oder way around, the holders having to sell it at a loss.

Therefore, I don't believe bit20 is worth buying it is criminaly overvalued, but I will try to replicate your idea of the Index. If you have a reason for this premium and how it helps your product, I would like to hear.

Thanks for your contribution

I don't understand why you allow such discrepancy between the real value of your product and the market value

I don't allow anything. I've created this market, I'm not selling BTWTY. The market is evolving naturally following the free market laws. Traders are buying and selling with a premium because they expect this asset to keep performing as it did so far ... almost 1000% since July 2015.

This premium is probably there to stay. You buy with a premium but you will be able to sell with this premium too, maybe even more.

It's not a problem, just a healthy reaction of the market contemplating a promising index.

I believe you shouln't allow so much premium

As I mentioned previously, I've only created this market. All I can do is observe it or trade on just like you. I find this premium quite interesting because it allows you to buy with a very low premium some days and sell it back with a higher premium later. I've seen traders selling their BTWTY at 23000$ when the actual price is barely over 10000$. You can't tell me that it's not interresting Wink

It runs in the belief that the coins will become more valuable.

So far it did extremely well ... have a look at the charts : www.bittwenty.com

I don't believe bit20 is worth buying it is criminaly overvalued

It doesn't matter to buy with a premium if you are able to sell later with the same premium. So far the premium oscillates between 120 and 140%. You can be pretty confident buying at 120-130% that you will be able to sell with a higher premium that you bought. That will allow you to win also on the premium, not only on the trade itself.

I hope this answers your questions ^^