Quote from: AIRcoin on March 20, 2014, 04:57:58 PM

Quote from: fabula on March 20, 2014, 01:05:13 PM

Right....please dev,expain what's happening!

I have seen AIRCOIN, read: STABLE,RISING ECHANGE RATE.

And bought 1btc of aircoin at 0.00196 cause you have say that below 0.002 was a good investement.

Now they arer quoted 0,00158 and very few buy,means that theyr quote will DRAMATICALLY decrease next hours.

From the day that i have bought them i have just starting to loose....

Seems 5 financial expert don't make a great work till now. Hope this coin is not just an experiment, and within some months it will die and dev starting a new one from ashesh of aircoin.

I mean....seems that aircoin is only a TEST from financial expert landed in cryptocurrency for first time.
And they know how to sell a product,that is dramatically falling down....

As explained in the previous post, this is exactly what is happening:

1. The inflation rate is steady, at ~2700 AIR per day
2. The Pool growth is steady. ~-300 AIR per day
3. The Demand is moving. (new users, currently not a large factor)
4. The supply is moving. (dumping, which is a large factor)

The inflation rate and the pool growth rate should bring the demand and supply in equilibrium to keep the exchange rate flat, plus a little to raise it slowly. However, they, which are supposed to respond to supply and demand, are instead very very out of balance (.5 BTC per day VS 5 BTC per day). This is because the pool cannot grow fast enough (exchange volume is too small) and the block reward does not change because we cannot implement the variable block reward on only one exchange (or we would risk, much worse, instability in the code).

The team is deciding exactly how to combat this, and it will either involve adjustments to the block reward or expenditure toward affecting the other 2 factors in the system. The first solution would come along with KGW adjustments to address concerns with the pulsating difficulty. Both of these are an attempt to provide a more realistic equilibrium, given that the current reward was chosen based on estimates from 3 weeks ago before the coin had launched.

In those estimates, we assumed a larger exchange volume, a lower rate of selling by miners, and a higher amount of new users and initial demand. The other solutions will involve capital spent (out-of-pocket, not the premine, as that would crash the market) on coding, media and exchanges to implement long-term solutions that raise the 24h volume and allow us to eventually implement the variable block reward. If we bought coins, that would be a short-term and very silly way, since, in one way, the equation is currently out of balance. Dumping BTC or AIR on either side does not make it self-sustaining.

It is not really a matter of panic or instability, if we did not have the investment pool at all, the price and volume would be much lower (~.001 and 10 BTC/day) and far more volatile. But a matter of underestimated rates. These last two days have given us enough data to experiment with to know, definitively, what economic forces are in play. As of today, we completely understand the problem and it's just a matter of deciding how to use our resources to reverse the trend, as explained before, there are quite a few options.

We are still deciding exactly what to do, and new options may present themselves, but those are the most viable solutions currently. Expect a definitive answer soon.

If you are worried about losing BTC, I will repeat looking toward the investment pool, which is growing despite the downturn in the market, as a demonstration on how to make profit in a downturn market.

I still suggest pumping in BTC to attract attention on top of coinmarket cap. Then you'll get your volume from people looking for the next train and you'll make money going up and down.