Quote from: whatsTheDeal on May 17, 2017, 03:56:28 PM

Quote from: rkat55 on May 17, 2017, 03:13:08 PM

Quote from: Razaberry on May 17, 2017, 02:42:07 PM

Quote from: yvv on May 17, 2017, 02:29:09 PM

Quote from: rkat55 on May 17, 2017, 02:01:13 PM

Quote from: Razaberry on May 17, 2017, 01:30:29 PM

Quote from: rkat55 on May 17, 2017, 12:46:27 PM

I am seriously considering investing in Bancor, but I have this nagging question in my head that hasn't been answered yet:

How is Bancor's token any different than any other token? Are the following statements accurate:

1. You buy it with another ERC20 token. Now you have Bancor token.

2. You sell Bancor, use it or hodl.

3. Bancor's price goes up or down based on the buy and sell ratio of Bancor.

Bancor presumably answers the liquidity issue, but what makes Bancor liquid? Isn't it the same as what makes any token liquid, buys and sells?

Not fudding at all, I want to invest! Please help me understand.

So the BANCOR token will be the first of the smart tokens. What makes it liquid is the exact same thing that makes every other smart token liquid: namely that when you are buying/selling smart tokens to the smart tokens' contract, the contract itself is the entity that is selling/buying.

Up until Bancor, the only way to sell is if you can find a buyer who wants to buy what you're selling at the price you're selling it. With the Bancor protocol, the smart tokens' contract is always available to buy from and sell to.

But is it actually buying my token or am I just trading my token for a Bancor token? Bancor tokens will have to be liquid themselves in order for me to buy/sell them. I'm having a problem identifying the difference unless I'm stuck with a token that has absolutely no liquidity itself in which case how does it help Bancor's token? I'm not seeing how this is any better than trading on an exchange and choosing any token/coin I want.

They will hold the reserve in ETH to make us able to buy or sell bancor. It does not need to be listed on any exchange for this.

I'm not sure I understand the difference between buying a token with another token and trading a token for another token. If you were to buy BANCOR from the smart contract, you would send your ETH to the smart contract (which would be added to its reserve) and the smart contract would mint new BANCOR tokens (at the price it calculated at time of trade) and send them to you.

Like I said, Bancor tokens are liquid the same way every other smart token is liquid. The smart tokens' contract is the thing you are trading with (as opposed to exchanges where you have to be matched with another party to make a trade). That is why it is always liquid.

The biggest reason that Bancor is better than exchanges is that EVERY conceivable currency in the world, even small ones like community currencies and loyalty points and in-game currencies, will be fully liquid. Exchanges only make currencies with high trading volumes liquid. With Bancor, the long-tail of currencies can be created (alike to how youtube enabled the long tail of videos, how Instagram enabled the long tail of photography, etc.).

There's also the fact that trading on Bancor will be cheaper than on exchanges (no/low fees), that you can create smart tokens that serve as token baskets (kind of like ETFs), and that it is decentralized and therefore cannot be DDoS'd or otherwise easily attacked.

I can see some advantages to that (which is why I'm interested in the first place). However, I don't see this as an alternative to exchanges. If I trade one token for another on an exchange I now have the new token. If I trade one token for Bancor I now have Bancor Tokens. I don't own the tokens inside Bancor outright. I have an ETF basically as you say. An ETF Token, which, is cool and maybe that's really all it is when all is said and done and all the fancy math is complete

if you trade for a token that is a smart token you will have the token not bancor, if token A is a smart token and token B is a smart token if you buy them you have them not bancor... Also if you trade any of them to a token in a reserve you will have the token. for example if you put GNT in a reserve and you buy GNT you will have it... the only case where you wouldnt have the real currency is when its a tokenized version of it like if somoene were to create a token for BTC you would have a BTC token..

the main key issue in the exchange will be the issue of pricing, if the smart contract will at any time make the tokens on the exchange for a client and have a question. what is the price of this exchange and is it profitable to change at the moment, liquidity in this case will be supported, but at what cost?