Post
Topic
Board Announcements (Altcoins)
Re: [ANN][WOLF] InsanityCoin - coin for investors and traders
by
InsanityDev
on 10/03/2014, 23:46:27 UTC
So glad to see you discussing things!

Week 3
Albert Einstein called compound interest ".. the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it".
He didn't really say that, but it's quoted a lot in various forms.

I short, this week I provided a volatile fluctuating market, with prices swinging from base to 5%, 10%, 15%+ forwards and backwards over a few hours.

From my perspective, this allowed me to acquire more WOLF cheaper, even if I had to take a hit on some trades where people were playing the spread, it forced people in to dumping lower, lowering my average acquisition cost massively.

From a traders perspective, if they were active and playing the spread or watching the price movements, they could perform several trades to grow their balances, similar to how compound interest works.

Working with fixed variable of buying at 0.001 and selling at 0.0011 five times in a row, and starting with 1000 WOLF.
Trade 1: Sell 1000 for 1.1 BTC, re buy 1100 WOLF
Trade 2: Sell 1100 for 1.21 BTC, re buy 1210 WOLF
Trade 3: Sell 1210 for 1.331 BTC, re buy 1331 WOLF
Trade 4: Sell 1331 for 1.4641 BTC, re buy 1464.1 WOLF
Trade 5: Sell 1464.1 for 1.1 BTC = 1.61051 BTC or 1610.51 WOLF

So whilst the market only went up 10% in our example, the trader earned 61.05% profit with 5 very simple trades.

Consider this trader did this for the last 3 weeks in a row, the same 5 trades. At the end of week 2 he'd have ~2593, week 3: ~4177.
For the sake of interest, week 9: ~72,890 - yes that is the correct figure, almost 7200% gain if the coin has not gone up in value.. if it has even doubled in value then that's nearer 15000%).

Week 2
This simply demonstrated what happens when everybody rushes for a coin seeking a large gain, they force each other lower, jam up the order book so that even a whale can't move it, and ultimately force many people in to a loss. You may recognise this pattern from most coins you've ever bought that have been "pumping" (allegedly).

Future
Ultimately you all need to learn to hold your ground, to trust that a coin is worth something, if you all believe it is, it simply will be, or even if most of you do.
Each week you know 100 BTC is going in to the market, why be so keen to let go of your WOLF? If you can buy 1000 for 1 BTC, and sell 1 for 1 BTC, do you not have 999 WOLF free, which you can sell at literally any price to make a profit? If you see somebody has placed an order lower than yours, why move lower still, move higher so the low order moves higher too, or leave them alone to get swallowed up for cheap. Remember your numbers though, you can't just keep putting all your coin on the market at a higher price as together you'll all be asking for so much BTC that nobody could move it, and also force your fellow traders to start going lower again.

All of this applies to every coin, successful "pumps" happen because the large coin holders clear the order book of sell orders, you'll notice that the coins which go up the highest have lots bought cheap, then hardly anything on offer for anybody else, frequently only 1-2% of coins in circulation are on the market, allowing the price to rise easily, stabilize high, then the sell start happening (the dump) - a dump wipes the price back down, a slow steady sell of only what you need to keeps the price going higher or roughly stable. This would never happen if the orderbook was full would it? you've seen those coins with lots of sell orders where it dies (check CORG, or check COL for something which is locked at a stale mate).

WOLF This 9 week game is a novel distribution phase, you who are playing are the ones who will and do hold 100% of the coin, you together control it's price, and your own profits, both short and long term. I hope you can make some short term profit each week to either get out with some BTC, or to be holding a decent amount of WOLF which you've lowered your overall purchase price for over the weeks, or even just holding free wolf having taken out your original investment. I also really hope you learn to value the coin(s) you hold, to not let them go too easily, and to start making larger profits on more stable markets - and of course hopefully WOLF will be one of them. I hold ~6000 as you all know, and I'd really like 9 weeks of work, and several months of feature additions after to be worth a bit more than 6 BTC at the end.. but that's all in your hands, and mine a bit I guess.