Post
Topic
Board Announcements (Altcoins)
Re: [ANN][SCRYPT] Klondike Coin ★ 16 coins block / 19mil total ★ 0% Premine [KDC]
by
jackdminer
on 05/03/2014, 18:07:11 UTC
KDC is on life support here.  Great services, just no one to use them.  Goes to show that hypes/pump and dumps rule the day.

ETA: and I say this as a holder of 55000 KDC..  unfortunate.

So now its the pump and dump coins that have destroyed KDC? (That everyone in this thread is trying to become a part of BTW)  

I thought it was the profit miners flooding the market, or the 77 KDC reward causing inflation?


No the problem is too many of you believe a low reward per block = higher price.  The reward per block serves an entirely different function and that is to support network hash rate, nothing else. You minimize the dillutive impact of the daily reward by striking a balance between reward/hash rate/market liquidity.

Now that there are few rewards per day to sell/hoard/speculate with post fork, the marketplace to exchange the coin for BTC looses efficiency increasing the BID/ASK spread and lowering trade volume detracting new money from investing/speculating in the coin which reduces efficiency further, creating a downward spiral feedback loop.  As I write this the last trade on CoinedUp: 0.00001538

All the while the meager total award value per day generated by the hash detracts miners and they move on to other coins, go play golf, head to the pub...
As the overall hash decreases lower and lower the reward per day is placed in the hands of fewer and fewer miners who slowly realize there are no more buyers of the coin at any price and at some point they capitulate, the coin dies.

So until someone decides to hit the undo button and reprogram the coin to have a sustainable, stable, liquid product you might as well pull up a seat and watch the train wreck.