Quote from: chutchmcgillicutty on March 07, 2018, 09:43:19 PM

Quote from: psicopompoi on March 07, 2018, 07:32:36 PM

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!

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...

Cool

The supply - demand control is what they are proposing, but not through news manipulation. They don't want to make their currency drop in price, only make it appreciate. So they use profits from the trading portfolio or fund and buy on the main exchange, making price go up. Then they destroy the tokens. So it's not so hard as manipulating with bad news. The thing is if they can keep up the trading profits... for now they have (if their live portfolio doesn't lie) but I'll watch to see how it goes!

I found an image that explains it but it seems my account is too new. It's in this link:

https://medium.com/@OptiToken/unique-value-proposition-strategic-buy-pressure-and-strategic-scarcity-9da9f645e971

Quote from: chokomenia on March 07, 2018, 10:58:55 PM

well Coinmetro exchange which is an upcoming exchange planned doing same thing with their exchange, they will buy their tokens back when the price is going down and put it back to sale when their scarcity. The deal is cool to me but I don't know how they will implement it, until it is test and prove working, i am not investing.

Well this is what Optitoken is proposing I think. The thing is they will be making price rise by buying from the profit generated by the portfolio trading, which is the underlying value. Yeah, I'm still doubting. I'm on the telegram channel now to see how they are handling stuff.

Quote from: CryptoAlphaStar on March 07, 2018, 09:04:48 PM

Yes, they definitely can. The best way is if the economics and math behind the token is designed in a way that it stimulates natural growth with time. Provided that adoption and demand of the token increase.

The team can also manipulate the price by bying or selling its own tokens on exchanges. For example, Canya recently announced they will buyback a portion of their tokens.

Legit projects should care about price movement and early investors and guarantee a min low of the price on the exchanges.

Thanks for the other example, I'll check to see how it's going for them... I agree with that last part. I already bought an ICO that just tanked on exchange... this seems to solve it by creating stable prices through a sort of distribution of value from portfolio to holders. Still have to trust them though.

Quote from: trademark on March 07, 2018, 09:51:45 PM

It will depend on how many bitcoins the team have saved up for the purpose of buybacks and also how large the daily trading volume is. If the volume is low then yes, it is very possible to keep the project from drowning but if the trading volume is very high, it will take much more funds to keep it above waters and that's not even a guarantee.

Well in this case the buybacks will come from trading profits of the portfolio, so they should be regular and in theory also work in bear markets like this one, as the live portfolio shows profits... which for me is the most attractive cause I can't trade (bull or bear lol) and the coin will hold when others are down...