RE: Buzz On $CUB, I'm Focused On $LEO
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Bitcoin was dumping and $cub was still holding. Maybe it has dropped a little, It still looks very bullish.
One of the very important things to consider with tokens, particularly Hive Engine/Hive ecosystem ones, is the complete lack of market making. Liquidity is usually very poor and the ratio of sellers to buyers is rather significant. Spreads are usually very wide as a result which means there's little incentive for buyers to appear when they're paying quite a premium which makes any purchase negative in an instant.
These projects are incredibly niche and the ones with the ability to really control the price are mainly interested in joining that selling pressure once the price is at a level that benefits the creator the most.
So smaller holders will be more inclined to sell into the bids which increases that spread, making buying less appealing even more, and those that do hold more will just set asks that are quite delusional that ultimately few wish to fill.
So ultimately: market performance can be incredibly poor and you won't notice much of a different in these token prices/volume simply due to the niche interest. They're for the most part void of sentiment.
This is very true, infact most token creators don't care so much about what happens next with the tokens. It is very understandable as these things are still new. Layer 2 tokens are very much new, it is expected for now that the community that owns the token should market it.
Yes, I agree. We see this every time. However, I think everything gets better with time. For now, we can only just build and hodl and hope for marketing/promotion to fall in place in future.
Thanks for stopping by. !PIZZA
This is actually a really interesting point to make. At which point is Hive oblivious to particular forms of manipulation? For example: we look at someone's Hive balance and reputation score as a method of gauging trust in a user. At which point do these two things result in ignorance over what someone's intentions really are when creating a token here?
If someone creates a token but the distribution results in the creators just airdropping to friends or to themselves for the most part, should it really be expected upon the community to be the ones to market the project? At which point, with reputation scores and Hive balance, do we take a look at real motives and question the integrity of those creating the tokens? Is there a clear passion to expand upon and build in a certain area, or is this merely an attempt to make some quick money at the expense of Hive users by creating a hot interest token and dumping it on them? At which point is there a slow devour of communities as increasingly centralised bodies for the purpose of personal profit?
People could very easily place expectations and responsibility on the community of Hive rather than those ultimately pulling the strings with these tokens. For then we're basically repeating the Steemit situation all over again. Perhaps on an even more significant scale in which the core concepts of Hive's ability to gauge reputation is completely lost and these larger bodies on the network slowly create a very centralised ecosystem. I think it's very important that people on Hive start to ask these questions while these concepts are quite early, to ensure that greed is not confused with passion for community.
Very interesting questions to have, with some very interesting concepts to begin thinking about as Hive does enter this new area of cryptocurrency that mimicks the rest of the space, typically one that's void of anonymity and decentralisation; and one ripe in manipulation and greed. Hopefully Hive's community can be smart enough to go forward both safely, and in a way that doesn't put this place at risk and ignoring its core values.
Thank you for this detailed explanation. I've read it a couple of times to really digest it. We can only hope for these things. Most people in charge are humans, anything can happen.
Absolutely on the money. If I buy $50,000 worth of Leo there will be the biggest candle anyone has ever seen. And will most likely dump right back to the levels right before the buy.
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Let's carry out the experiment..😆😆
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