When To Manipulate The Market

in #steemleo5 years ago

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We've all see the market manipulation tactics with crypto, from pump and dumps to outright exit scam. However, what we often fail to realize is that these markets should be manipulated.

Allow me to explain.

We all know that crypto is volatile; pretty much the most volatile financial asset on the planet. This makes it a poor unit of account because the value shifts around so much on the drop of a dime. Therefore, isn't the obvious response for crypto communities to rally together to make their assets more stable? Buy Low? Sell high?

Support the chain and make money while your doing it.

Everyone who buys low and sells high is not only going to make financial gains, they're also going to reduce volatility of the underlying asset. Many of us get carried away and go all-in far too quickly. It's rookie mistakes like this that leave everything up to lady luck. Maybe you'll strike it rich, maybe you'll go flat broke. Try to find a balance instead.

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Here's an example of a coin that openly regulates itself. Binance is known for buying back their own coins and even destroying them. I'm surprised not many people are talking about this one because it's the only top 100 market cap project that's been able to easily breach it's previous all time highs.

I imagine they'll add even more governance rights to the stake holders in the future, giving even more reason for many entities around the world to hold this coin. It's like an extremely upgraded version of stock due to Binance's centralized nature.

The irony of stability.

Say a crypto becomes stable and is gaining 30% ROI from network effect every year. What's going to happen? Everyone's going to buy that coin knowing it has guaranteed ROI. Then the price spikes out of control and the market has to discover the real value over a lengthy time period just like every other project out there.

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Look how pretty this Maker graph is. It's obvious to me that Maker is the most self-regulated coin in the entire space. This doesn't look like any other graph out there. Clearly the tops were sold off and the bottoms bought out. This is exactly what you would want to see if you were trying to regulate your own project.

Investors will look at a price action graph like this and be really impressed. Buying in at this stage looks like a free win. It's when the price spikes up again that no one knows how the discovery will turn out. Perhaps they'll try to control that as well. It will be interesting to see.

Conclusion

Market manipulation is not a bad thing; it is exactly what we need. The problem with all the manipulation today is that it is done out of pure greed and exploitation. What the market really needs are big whales who care about their projects that are willing to come together and figure out a healthy volatility for their coin.

If volatility is too low and you just sell into all the buying pressure, you're essentially going to get bought out, hostile takeover. However, if we allow the market to find its own price, we'll soon realize we missed out on an opportunity to make free money while supporting the project through volatility reduction.

It's all a balancing act.

Find your balance.

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An interesting concept although I think the word manipulate might be too strong. Nevertheless I get what you are saying and agree.

The Whales need to make sure they are looking after the platform and doing what is in the best of the long term interest of the ecosystem.

Too many operate purely on greed and self interest as you said.

Hopefully we will see a difference in Steem and what is taking place on there. SteemLeo appears to have a strong group of Whales who are supportive and trying to do what is best for the platform.

wait...

are you trying to sell me planned economy right now?
well, okay, not completely.

The more unstable fiat currencies exist,
the more crypto will try to become it's own source of stability.

Yeah.. I also already had thoughts like..:
If BTC's price rises this just means my euros are worth less.. ^^ like if btc already is the new metric, not usd or gold.. ^^

Fuck I need more. And I have like no.. But I also didnt earn or work much yet..

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I am not much of a supporter of market manipulation. Creating liquidity is fine. Marketing is the best idea in my opinion.

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