There’s about 75–100 BTC in USNBT sell orders up to 1 USD at Bittrex. From an investor standpoint there are many different ways to approach this.
Rational investors count on the peg eventually being restored with enough confidence in keeping it that demand for NuBits increase to the point they are able to profit.
An investor can profit from NuShares or NuBits.
- Buy NuBits on the market below peg price.
- Buy underpriced NuBits and park them for ~40% APR (varies by shareholder vote).
- Place buy orders for NuShares (NSR) that Nu gradually sells into for proceeds to back NuBits with. Sales are limited daily to 0.5% of circulating NuShare supply.
- Buy NuShares directly. Contact us via firstname.lastname@example.org to negotiate, or Bitmessage:
Sales pressure on the NuShare must provide funding while encouraging competition in the market. We’ve limited its dilution to 0.5% of circulating NuShares per day, and the market has responded favorably.
Question is how we would best utilize investment capital at this point. Restoring the peg by purchasing NuBits up to $1 is the instant approach. Buying NuShares directly from us can provide funding to restore the peg and continue development.
It will be difficult to motivate a large purchase of NuShares for 1–10 satoshi or lower. Dilution would be severe. 100 BTC at 10 satoshi is 1,000,000,000 NSR. That’s a third of circulating supply, quickly increasing down the price range. Yet if necessary that’s what should happen. Current shareholders who have profited from NuShare buybacks are adviced to provide support via the NuShare market to avoid being diluted.
Gaining 100 BTC of support in the NuShare market would visibly display high investor confidence. It would trigger competitiveness for acquiring NuShares at the lowest price. That’s how we envision the system to function. A NuShare market full of speculators on the future of NuBits that create a source of liquidity for when a NuBit peg requires backing.
Our asset reserve in Tier 1–4 is a buffer for the deeper Tier 5 and Tier 6 liquidity. Since we cannot rely on the asset reserve to keep its value, we spend part of it on increasing incentive to own NuShares (with buybacks). There is infrastructure for dividends if shareholders prefer.
Anyone can ask shareholders to implement a change that would motivate them to invest. Our team I believe has shown it responds to shareholder will expressed in passed motions, and is not misappropriating funds. One custodian did have an amount of NuShares compromised and will no longer hold keys to shareholder funds in singlesig.
Demand for a stable digital currency is obviously high and for intuitive reasons. Compared to competitors, NuBits can operate without the risks of depending on central entities and jurisdictions. Its operations can be fully automated.
Shareholders that understand and commit to NuBits will profit from NuShare buybacks and provide backing liquidity to keep the NuBit pegs in order to encourage even higher demand in the future. We’ve absolutely failed to communicate that to investors. I’ve been pushing shareholders to hire professional marketing, but didn’t manage to make that happen in time.
Creating demand for NuShares seems to be the most effective way to invest and sustain NuBits. A combination of approaches is certainly possible, and we’re set on figuring out what makes sense for each party. Open a conversation with us.