NuShares markets are characterised by low volumes and wide spreads. It has more or less being this way for a long time now, and I am honestly not surprised : this token is first of its kind, non-transactional, representing equity and useful to vote via stake.
Shareholders are long and holding most of the times, and somehow we are not advertising NuShares outside this community much, so the buy pressure is scarce.
Long term, an illiquid market is perceived as weak from the outside. With the B&C exchange things are going to change for the better hopefully with a NSR/NBT pair. Also auctions will create a parallel market.
In the meantime, in this thread I would like to collect and discuss ideas that can help improving market velocity :
- Create organic demand of NuShares : yes, because demand and buy pressure is what makes a stock active in a first place. People start to notice, they see the advantage, they understand the product and the rest follows. We can write a book on how to create demand, but let’s try to find a simple strategy to start with.
- Create an OTC market for NuShares : this idea have been around for a while : i believe we need a place where prospect shareholders can buy bulks of shares without influencing market price. And we also need a place for Shareholders that wishes to exit their position without hurting the market by dumping on a low-liquid pair. Similarly to Kraken dark pool, but decentralised. I proposed open bazar some time ago, did anybody looked at it? Still too beta but getting there
- Create a community driven market-makers bot that helps tighten spreads : We could have some trivial market-making bots on open markets that are there to provide liquidity and tighten the bid/ask spread. This might also be profitable (or cost a little) and won’t take too much coding effort. Just funds and operators. This will make the market way more attractive.
- Create a community driven bot that takes advantage of cross-market arbitrage opportunity : also here we can deploy some arbitrage bot to take advantage of (often large) price difference across the markets.
- Get NSR added to more exchanges : finally we should promote NuShares to other exchanges while releasing some tutorial for NSR newbies and informing them .
Thoughts?I believe that if we are able to orchestrate a holistic strategy here, the network as a whole will benefit .