Chart Of The Day: Avoid This Token Trap

in steem-engine •  4 months ago 

cod Avoid This Token Trap chasing3744753_1280.jpg

(Resumen en español al final.)

Summary

  • New Steem-Engine tokens are showing a strange price pattern, crashing 80-90 percent in only some days.
  • _ Be careful with the new tokens._

Making my researches about Steem-Engine token prices I realized there are some really strange cases. Some tokens crashed 80-90 percent from one day to the other, or in a couple of days. Like heavy stones falling. I think mostly the new ones.

Crashing 90-99 percent

TUNES, SPACO, AFIT, RHB, MARLIANS. What do these tokens have in common? They fell 90-99 percent in some days or weeks. These are the worst-performing tokens among 30 by my last research.

PORN and SPORTS didn’t reach the 90 percent line, but the price move is very similar, I see the same pattern. A quick crash in 1-5 days. (Let me assure you that the organizers or developers of the tribe may have done all right. I don’t mean that was their fault.)

cod avoid this token trap.jpg
(Click to view in higher resolution.)

Mispriced IPO-s

How could this happen? I have a theory, knowing similar cases in the traditional stock market world. The cases of mispriced IPO-s (Initial Public Offerings). Sometimes the issue price, or the first price on which the stock is reaching the public market, is simply wrong, set too high. The market mechanisms are working, moving by their way, and the truth, the real price comes to the surface in some days or weeks. The stock begins its career with a huge free fall.

Facebook also began with a big fall, but recovered later, and is doing very well since then. Some of these tokens can recover in the future. The truth is, I have no idea. I don’t know how much the “real value”, “fair price” or “fundamental value” could be.

No method to estimate

Perhaps, Steem-Engine token investors have simply no idea either how much a token is worth. Steem-Engine tokens are something completely new, there are no known methods to determine any initial price, equilibrated value.

Also, the “dumping effect” is strong by these low Steem prices. As people are selling Steem, pushing the price down, I suppose also many of them are selling Steem-Engine tokens and walk to the exit.

Lower price, more sellers, more sellers, lower price

In the new “Spanish Tribe” or “HispanoHablantes” site, @ylich wrote about why people are dissatisfied with SPACO token and are dumping it. He says many aren’t familiar with downvotes, are experiencing it as aggressive behavior. They are also disappointed with the decreasing price of the token. So they are selling it in big quantity.

People are used to seeing downvotes in first place on posts made with plagiarism, or spam or posts having other major ethical issues. If they receive a downvote they are offended or discouraged. Maybe this shall be a warning to other tribes, and HF21-lovers, too: be careful with the weaponry of the downvotes.

Conclusion?

I think I should never buy a very new token, seems to be better to wait 2-3 weeks until things calm down. And if I plan to sell something, I should better make it quick.

But I can imagine also other scenery in the future. If Steem went upstairs, if all token prices went up, in a new hype… maybe new tokens could bee scarce and prices would surge after the first day. But this is also only a theory. The general rule, maybe you are tired of it already, but very true: Take care of yourself and never invest more than what you can afford to lose.

Resumen en español

Este gráfico ilustra que algunas monedas nuevas de Steem-Engine, como también SPACO, muestran movimientos extraños de precios. En los primeros días, o un poco más tarde, pero rápidamente, en solo unos días pueden caer 80-90 por ciento.

Una explicación para esto es que el precio inicial fue subestimado. Este es a veces el caso con nuevas emisiones de acciones también en el mercado de valores. Ylich escribió que muchos se sentían atacados cuando recibieron un voto negativo. Les parece una agresión. Otros venden SPACO porque les molesta la caída de los precios.

Conclusión:

Simple. Cuidado con los precios de las monedas nuevas, no arriesgues demasiado.

The series “Chart Of The Day”

I started a series with the title “Chart Of The Day” because I see every day interesting events or phenomena on the markets or in the news. Other parts here:

The last ones:

Older ones:

(Photo: Pixabay.com)

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Perhaps, I wait for steem to go down below to it's lowest price since downvote become more involved. Then HF22 will take over to removed downvote, people become greedy again, I sell my capital that time and move it the another speculative investment. My profit will stay as SP.

Or, Steem price remains low, Steemit Inc. and witnesses can't pay the bills and all the system collapses.

You think people started to buy new tokens like a maniac like spaco? I have doubts about that. I think most sell all those tokens you can not be active everywhere.

The downvote is here soon, bots not wanted will downvote you just because it is you. That is negative no matter what name you give to it believe abh123 came with some suggestions to make it sound more friendly.

AFIT... what reason do they give?

I hope by soon again. Thanks for keeping me updated in between my...

Happy weekend 💕

Posted using Partiko Android

I think the initial, first-day price of the tokens was too high, tokens were at first overpriced, overvalued. Whoever set these prices.
Yes, many people are selling, but some of them also buying. An "equilibrum", balanced price needs some time, days, or weeks.

That is precisely right. It does take some time to find a balanced price, where demand and supply will meet. In the case of Spaco, our reversed airdrop where you had to buy Spaco or Spacom (our miner) to get staked Spaco in the airdrop, caused for a higher price in the beginning.

It seems we have stabilized now and we see both buy and sell orders come in on a regular basis. In the end it is not the token, but the community that has to create the value.

On the topic of downvotes: We feel it is important to strive to a high quality level. The use of downvotes is therefore not something we fear to use. And in the case of blatant plagiarism we will ban users from posting altogether (yes, you can ban users on Scotbot ;-) )

I also wonder who sets the price, but also who decides they are worth less.. suddenly overnight.
💕

Posted using Partiko Android

check new lifestyle tribe, it's designed a bit different than other tribes

Yeah, the other tribes clearly don’t understand token economies. But who does, really? It’s an evolutionary process.

Posted using Partiko iOS