Post
Topic
Re: [ANN] Bancor | Protocol for Smart-tokens, solving the liquidity problem
by
Razaberry
on 18/09/2017, 06:46:43 UTC
Read
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.