Quote from: Razaberry on September 18, 2017, 06:46:43 AM

Quote from: RoosterRed on September 17, 2017, 09:50:50 AM

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Quote from: Dvd1989 on September 17, 2017, 09:34:41 AM

Quote from: RoosterRed on September 17, 2017, 09:18:18 AM

Here is a good article I wrote on the Bancor coin/platform: https://steemit.com/scams/@roosterred/why-bancor-unless-it-changes-will-be-pump-and-dump-nightmare-for-investors
It has positive and negatives.

Doesnt the whole idea of Bancor make it a project that cannot easily suffer from Pump and Dump? The Price Discovery makes sure the contract price is pretty stable in my opinion.

Read the article. It is the opposite. Changes in the spread between the contract price and the trading price can help you identify pumping done by trading between fake parties, but there is no reason why you would resort to trading between fake parties in a Bancor backed coin. It is algorithmic. Buy from the contract and the price goes up. Convince people to buy more than you did and you get immediate, risk free profit. You can get dumped on by whales in the market, but your losses are still less than with normal coins, and everyone else, sans the whale, loses along with you.

Actually, the dumping whale would pay for it more than anyone. Bancor's pricing mechanism takes into account the price difference created by each trade, which means the whale would pay for the drop in price in terms of their return, resulting in a huge disincentive to manipulate.

I really don't want to be rude here, but you need to look up what an incentive and a disincentive is. The whale makes money. He is incentivized to do it. He, in effect, gets decreasing returns as when you dump a load of Bancor backed coins at once the price adjusts (the equation is in the whitepaper), but still makes money. He is incentivized to dump.

You are creating a nonsensical hypothetical where the whale could have sold his entire stack at exactly the market rate. First, that doesn't exist in normal coins either. When you dump a huge stack of an asset you typically get decreasing returns, just like Bancor gives you in-effect. Second, Bancor backed coins can be traded on the open market, so nothing prevents the whale from treating it like a normal coin anyways. Finally this whole hypothetical revolves around the single scenario where a pumper can lose money. You apparently think it is impossible for a pumper to lose money. It is a good thing it isn't. The Bancor model incentivizes pumping and dumping enough already.