The price of the CTP token is falling and cannot be recovered.
Lately it can be observed in hive-engine how the price of the CTP token is slowly falling, this is not profitable for the community, since many users invest valuable time in our articles on ctptalk.com and after a month all our savings in voting power go to the ground.
I have my conclusions about this ghastly collapse in the value of the token and I am going to detail them little by little.
From a maximum of 0.5 Hive to 0.1 Hive
The first thing I could see is that there is an incredible over-sale, too many users selling their tokens, although this is totally normal, the problem is that they are constant tiny sales.
It seems that new users or those who generate few CTPs sell them as little as they can.
Something else I have noticed is that the amount of tokens is not limited, this is a very bad move from the creator because anyone who lives in a country with terrible inflation knows that the constant issuance of coins does not solve any problem, only it devalues more and more and has a negligible value. This is something that has a solution and is very easy, I just don't know how willing we are to apply it.
Miners increase the token amount for those who own many miners, but it is not profitable for the community. You should think long-term about what you want from your currency and the scope you want to achieve. For my part, I propose that the most relevant user @ctpsb buy almost all the miners and eliminate the generated ctp from circulation; This may seem absurd to you, but it is smart.
If we stop issuing more and more coins and limit them, we would get closer to the bitcion and the price would increase slightly. I don't want the same thing to happen to this community as to my country, giving away money to those who do nothing.
Well you didn't hear the good news ?
CTP just shifted to linear curation reward system so yeah now it will recover all the lost grounds .
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To be honest, it will mean little. People think that is a the magic bullet but it isn't.
Don't get me wrong, it is a smart move on their part. The delay in the release of their new website is what is causing more issues. When they go live with that, they will be able to focus upon growth which will solve a lot of these problems.
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I hear you but it is a move in the right direction according to me . Now we know that we will get fixed returns and as you mentioned once they release their own UI , things will start to come together for CTP holders .
Their roadmap mentions secret projects too .
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The ctpsb project gets delegations in Hive Power and pays the delegators in CTP tokens. Every week we buy a certain amount of CTP tokens to pay these dividends. This allows the project to support the price. The problem with the CTP token is that about 90% of the supply is staked. So somebody can tank the price with quite a small amount of money already. This doesn't mean however that this is the fair value for the token. The spread shows that the price is difficult to find.
The issue of paying dividends is very good, the problem I am seeing is that the amount of tokens increases and we have to stop them now, otherwise we will lose more value, if you look at the amount of token that there was at the beginning of the community they were less and that also sustains the value. I fully support your initiatives to save the tokens and not sell them but there are always users who take advantage of the price increases.
huh?
Is this article for real? How do you look at the pricing action and draw any conclusions based upon $100 in trading volume. It would take less than that to push the price up to .20 HIVE and clean out the closest sell wall.
On top of that, you mention inflation. Inflation is easily offset by a growth rate. At present, I am going to presume that CTP's rate in this area is abysmal. Yet they are working on a new website which is one of the keys for growing the userbase.
So whatever their annual inflation rate is, it is easy eaten up with 150%-400% growth which is easy when you only have 100 or so users.
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Hi there man, so to begin I think a look on a bigger time frame is in order, the increase in price that you also see in the chart was driven by one account, and that was brofund buying a lot of CTP tokens to get a big stake to curate with for their fund.
The next thing is the inflation of the tokens, the inflation is literally what you get paid on your posts and comments, stop the inflation and there is no more rewards on posts and comments.
The inflation is over time eaten up by the accounts which stake the token, and as you can see CTP has 89.36% of it's supply staked.
In the end the liquid supply is what the price gets set with since that is what is traded on the market, and if more wants to sell than buy the price goes down, and the opposite if more wants to buy the price goes up.
What maybe should be added by Jon and Blain is ads on the front end like Leo has, and that they use to buy tokens on the market thereby increasing the demand for the token, and when it comes to CTPtalk I think they have looked at it but that they need their new front end to implement it.
As to miners, I do not think miners is the best solution, but there is currently no better alternative, and the solution they are for is buying and staking BEE tokens in relation to how many active users you have, which is a requirement from Hive-engine.
There is quite a bit more going on than is visible just on the surface when running a tribe, the price chart is just one facet.
I wish you an awesome day.
Maybe you misunderstood me or I expressed myself badly regarding the meaning of inflation, this will be because we are from different countries. At the end of inflation we use it to refer to an increase in the issuance of currency that gives value to it. In short, more tokens were issued than necessary, saying that we went from having 1,000 to 10,000 in the ecosystem. The currency if it is scarce has more simple logical value.
Greetings from Argentina and have a nice day.
Ok I think you might be talking about that Jon has issued some tokens on the side of what Scotbot is distributing, and yeah some of that which at times was quite high can be a problem, some did lower my voting power in CTP by quite a bit, maybe you should talk to him about it, and also be precise in what you mean with that.
Maybe you misunderstood me or I expressed myself badly regarding the meaning of inflation, this will be because we are from different countries. At the end of inflation we use it to refer to an increase in the issuance of currency that gives value to it. In short, more tokens were issued than necessary, saying that we went from having 1,000 to 10,000 in the ecosystem. The currency if it is scarce has more simple logical value.
Greetings from Argentina and have a nice day.
👍