Current state of affairs not currently clear to new comers


#1

Having taken an active interest in NuBits and perused these forums for the past couple of months, there are many things that are not currently made clear enough for the ‘average joe’ looking to find out about the current state of NuBits. This may be due to too much technical information being too readily available, making it difficult to see the wood from the tree’s, that the entire infrastructure is overly complex, or perhaps that the developers/maintainers are too busy or it may even be possible that everyone here is so deeply involved that they do not realise how things appear from the outside.

From an outsiders perspective, it appears that the large majority of even the very active community, do not understand fully how parts of the infrastructure are supposed to work on a technical level. There are various examples of this confusion spread across these forums. I would go so far to say it appears as though only one or two people fully understand the very fine details of things like the ‘liquidity engine’, and that they are not entirely forthcoming on these details.

As I understand it, in order for NuBits to be successful, among various other factors, it must be able provide ongoing liquidity on its exchanges, and instil confidence in its user base.

It appears at present that providing liquidity in NBT is currently failing, this comes from the perspective of someone who trades in and out of NBT several times a day. Often the buy wall vanishes making it difficult to get out of NBT without a 2-4% loss, and causing fear, uncertainty and doubt about whether it will ever return or the coin will simply vanish in the next 24 hours.
This does not appear to have been clearly addressed in a manner that is easily located and understandable by an average user wondering what is going on.

This lack of obvious easily found explanation of the present situation, (if indeed there is one at all?) can only futher cause confidence of the user base to decrease.

On top of this from my perspective, even digging further it is very difficult to find any real solid information on even the most fundamental pieces of information, such as how NuBit’s makes or plans to make a profit.

Even after having put around 4-6 hours worth of research in to NBT I still cannot with confidence explain how NBT plans to make money. Embarrassingly it appears it is within NuBit’s plan to actually loose money for the foreseeable future, and NuBit’s will not be profitable until it has reached critical mass and surpassed BTC as a crypto exchange medium. Whether this is true or not I do not know… through reading these forums and the whitepaper, this is the conclusion I have come to, however I cannot believe that this can be true, as it seems like a ludicrous business model.

The forums are awash with conflicting information. On one hand there are posts saying you are hiring,… that has to be good right? No business which is about to go down the pan is hiring people. On the other hand it takes a user to ask why there is no liquidity in your primary exchange and the response is vague to say the least:

Why hasn’t this been officially addressed somewhere? In very easily understood, even watered down terms, in a very easily found and obvious place, explain why this is happening, what is being done to rectify the situation, and how long it might go on for.

All of this is totally ignoring the FUD and conspiracy theories you’ll find if you go back a few months which i’m sure everyone here is very aware of, and the recent bug in the bot which caused you to loose millions of dollars in BTC from fat fingers because for weeks the bot was falling back to a broken API with incorrect BTC prices causing the buy/sell wall to move wildly out of its intended range selling NBT at up to 50%
below $1 and buying it back at up to $1.30 (which I can find no acknowledgement of anywhere!)
.

Please do not take this as non-constructive criticism from someone who knows nothing.
I write this from an outsiders perspective in the hopes that it will shed some light on how outsiders see things looking in, as I know that from the inside it can be difficult to see from such a distant perspective.

So with all of that out of the way,… could someone, for the sake of NuBit’s own reputation and other unenlightened users reading this (of which I assure you are the silent majority), in simple terms please explain what is the current state of NuBit’s? Are you about to crash and burn? If you have never been profitable how have you survived so far? Can you be profitable in the not too distant future? And if not how are you going to continue to survive until you are? Why is there no liquidity? What is being done about it? And when will the bot be working effectively again?


#2

As far as I understand, Nu is broke and running on fumes. I’d be happy to hear an alternative perspective, but all my observations point to that. There is only liquidity when the btc price crashes, and it disappears again at the slightest indication of an uptick. The bot is not currently broken, it is simply empty.


#3

@jooize @Phoenix
Can we get official word on this? I am very interested in the project but the Nu Bid liquidity (Bittrex) over the last while is truly concerning, unless I’m missing something. It seems that the buywall gets demolished every now and then by a single individual buying ~900k NBT split into 20k orders within seconds. I am hoping to replace my usdt holdings with NBT, answering @elwon20’s questions above would make me comfortable doing so.


#4

I’m painfully aware that the outward information is unsatisfactory. The liquidity model isn’t extremely complicated, but it did take a long time for me to realize how its features can function and why they do.

Please take a look at the statement regarding current liquidity and follow up with aspects I should address.

We can’t recall when you might have observed this. Can you please show when that happened? There was a time when demand increased so rapidly that we ran out of NuBits to sell, and couldn’t keep the peg downward. It’s the best problem to have, and difficult to prevent entirely. We’ve created a larger sales liquidity buffer in multisig in response to that event.

I appreciate you coming here to share your thoughts. It’s valuable. I’ve recently reduced the amount of content describing NuBits on the main website because much of it was outdated or difficult to understand. Rather force the creation of proper material and improvements at the core issues.


#5

Your response is massively appreciated!

Your first quote although I didn’t read it through it in full this time, it is only because I have read it in the past, and correct me if I’m wrong it doesn’t actually explain where NBT makes it’s profit from. You cannot profit from shares… at least not in a sustainable manner.
– Edit –
Apologies, after reading more closely, this is certainly something I haven’t read before and it does explain that NuBit’s is capable of creating a profit during periods of high volume trading. I wasn’t aware this was the case as previous explanations of the liquidity engine have likened BTC to the oil/fuel in the engine that gets slowly burned, essentially stating that a tight peg with high liquidity can be expensive to maintain.
– /edit –

I have pm’d you with regards to the FF’s…

I’m still feeling a little left in the dark, I still do not know if you have any liquidity at all… are you financially stable? Will the bot receive funds soon?


#6

I believe you may have read another article about NuBits' Liquidity Model as the quote above is from today.

Will try to gather information about liquidity in Statement on Status of NuBits and Liquidity 2018–03.


#7

jooize apologies… I’ve done a lot of reading on NuBit over the past few months.

Your responses are greatly appreciated!


#8

Nubits would be a very interesting alternative to tether however recent events and hours of reading through the website, whitepaper and forum have raised some serious concerns for me as well. I fear long statements going straight into the inner workings of nubits will fail to convince newcomers and I would suggest answering the following questions in the most straight forward manner possible:

  1. What is the revenue model for Nu ecosystem? No details needed about inner workings, just what goes in, what goes out. The entire ecosystem (Nubit + Nushare) should be a zero sum game.
  • OUT: Parking rates, development team, advertisement, exchange listing, etc.

  • IN: revenue from the spread? (more on that later)

  • Unknown: shareholders? Ultimately should be rewarded and fall in OUT category but I suspect we are not there.

    Nubits has a complex scheme with many levels of obfuscation. The revenue model should be made obvious. I could not find a straight answer in the forum and the question is not addressed in the whitepaper. Given attractive interests rate are promised for parking, it is not surprising that some would call it a ponzi.

  1. How exactly is profit made from the spread? Let me know where my logic fail:
  • Nu succeed in maintaining the peg convincingly thus attracting attention.

  • Unlike a money changer there is no barrier to entry and anyone can jump in in front of the walls placed by Nu until the spread is eventually reduced to the exchange fees, taking profit away from nu in the process.

  • The peg is maintained by a very fragile consensus between individuals that have no stake in keeping the peg when the market is under stress.

  • Nu cannot backup the peg anymore since it didn’t have revenues.

  • peg lost.

    The only viable long term option I see is to generate revenue from the exchange fees, either through a deal with an exchange or by controlling the exchange where majority of the volume is traded; if that is even possible.

  1. Where is the accounting? Not bits and pieces scattered on the forum, a proper aggregated report? If I was a shareholder I would definitely want to see something like a shareholder report. This should help ansering subquestions to point 1): is it profitable yet? If no, when is it projected to be?

  2. Where is the roadmap? It should be easily accessible on the website. What are the undergoing and planned developments and expected timeline? Tying up with point 3) I’ve seen several votes to pay nu members for various work. How where those approved by shareholders without a clear mandate indicating deliverables and deadlines?

Regarding immediate actions to address the present situation, I would suggest:

a) Be more upfront with the present situation. Concerns have been building up in chat and forum for a while, yet most messages pretend it’s business as usual. Delaying addressing those only builds up FUD and doesn’t allow discussing eventual solutions.
b) Move up and reduce the sell wall on bittrex until NBT goes above 1 USD or a matching buy wall can be placed. Giant asymmetric sell walls are common tactics employed by whales to manipulate the price and will likely contribute to pushing the price down.
c) Remove outdated information on the website → seems to have been done. :+1: