Quote from: pankkake on July 04, 2013, 02:22:18 PM

Quote from: bobboooiie on July 04, 2013, 02:10:03 PM

Quote from: Mabsark on July 04, 2013, 02:07:31 PM

The change in share price over the past day should be enough to show that AM's share price has nothing to do with the actual value of the company and is entirely dependent upon speculators.

Everyone saying that AM is overpriced is correct, and the volatility of the share price just shows that.

Really ? I would say the past day was exactly opposite what you are saying

Given how fast price recovers, you're right. There is strong demand for 4-5 BTC shares.
It's mostly noobs panicking. I wish I had the time (and some meaningful capital) to participate every time!

The biggest issue really is the lack of liquidity. Only ~10% of the outstanding shares are on exchanges, and share orders are even thinner yet, and spread across 3 exchanges. (Buy or sell).

IE: One could put in a $15,000 buy or sell market order, and move the AM price by over 0.5 btc in either direction, which translates to a $16 million change in market cap!!

This has nothing to do with valuation, or bubbliness, this security is just thinly traded (across multiple exchanges) and market orders have an oversize impact.

We really need market makers providing liquidity as specialists, who are mandated to provide a certain amount of liquidity, NYSE style, but I fear the closest we will ever get is traders posing as MMs ala NASDAQ-style. Another challenge I think, is the 24 hour nature of these exchanges. Traditional MMs need to sleep, and would never dare leave up open orders, when they aren't actively trading. Hmm. thinking about it further, I suspect that we do have traders acting as unofficial-MMs during some arbitrary daylight period, but when they sleep the prices are moving like "after hours trading" on a tradition exchange. IE: very volatile.

Bear this in mind, when trading any of these securities, because AM is currently probably one of the most heavily trade bitcoin-assets.

-helixone