Re: Can a team control the price of their own coin for growth??
Hey guys, just joined the forum and going through the announcements I found this OptiToken project. The team and white paper seem legit, and I like the idea of owning part of a portfolio that trades automatically, as I have tried trading but I'm a noob and suck at it.
The thing I'm not sure about is they plan on making it a hyperdeflationary currency in a way I haven't seen before. With the portfolio trading, they will use profits to buy their own tokens on the market to create "buy pressure" and then destroy the tokens they buy to create scarcity. They say this will create price growth (even in bear markets) and value for holders long term, and meanwhile the underlying grows... As I see it they are basically controlling the price of their own currency to make it grow... Does this make sense? Is it doable? I like the idea of owning a token that can see this kind of growth but I'm not sure if it can work...
ANN is here: https://bitcointalk.org/index.php?topic=2975245.0
PS: Tell me if this isn't the place to post this and I'll move it!
The thing I'm not sure about is they plan on making it a hyperdeflationary currency in a way I haven't seen before. With the portfolio trading, they will use profits to buy their own tokens on the market to create "buy pressure" and then destroy the tokens they buy to create scarcity. They say this will create price growth (even in bear markets) and value for holders long term, and meanwhile the underlying grows... As I see it they are basically controlling the price of their own currency to make it grow... Does this make sense? Is it doable? I like the idea of owning a token that can see this kind of growth but I'm not sure if it can work...
ANN is here: https://bitcointalk.org/index.php?topic=2975245.0
PS: Tell me if this isn't the place to post this and I'll move it!
Theoretically, a team could control the price of their coin through supply and demand.
Say a coin comes out at $5
Then, the team let's something leak that is bad news
Price drops down to $0.25
The team could then buy back their coin and create a more limited supply
Then the price would go up
Very easy in theory, but difficult to pull off in real life since the market is more than a two-point system...
