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RE: Stellar Lumens Up 1050% in 4 days? Any ideas why? (STR/XLM)
I feel like I'm still missing something though. Why does a giveaway pump up the value of a coin? It seems like it would dilute the coin by expanding the circulation. Is it mainly because of the hype that the giveaway creates? I feel like if someone owns a ton of BTC, they'd be better saving their coins and getting Lumen when the giveaway happens instead.
What has happened in the past after a coin does a major giveaway? Do prices rise or fall?
@hasmatt - great question! You know, I was thinking about doing some research on that. Wouldn't be too hard tbh - Stellar.org did the first tier giveaway already. Not sure what happened to the price, but we could easily look.
Honestly, I don't want to look into it too much - though I should because I'm holding 15k at 2x the current price...my theory is that big hitting whales will come in and buy XRP prior to the June 27th STR giveaway, get free STR and probably pumping and dumping all in the process. I've also read that STR and/or XRP is the fastest transaction. Also have been seeing a lot of great media around both orgs.
Market manipulators would love this set up. They are only giving away 1% (1 billion STR) to XRP holders and 19% (19 billion STR) to BTC holders. If you look at the prices, and I haven't totally done the math, but seem like a bigger potential return playing with daily returns on the volatility of STR/XRP and the gamble of whales creating some waves. What do you think? Always curious for insight!
You need to own 10 bitcoins to claim 1,911 lumens, or $72 at today's prices. My guess is bitcoin holders will just hold on to rather than sell, what's the point at that price? This giveaway has been know about for some time. Perhaps it's is already priced in. You're right about the similar giveaway which was carried out last year between July and October, the price was more or less static during that time. Perhaps some bitcoin holders will not even bother to claim. Things are different this time however. I'm guessing a lot more people know of Stellar now than last year. And that'll mean more people are likely to claim. I foresee a distribution resulting in a rally in price rather than a depression myself, perhaps not unlike the recent rally. The next couple of months will not be boring, that's for sure.
Cause after the giveaway Stellar only hold 5% of remaining coins. Ripple continue to hold +63%. Now if I were a bank seeking future stability...