2016–09–04
2 million NuShares sold into buy wall.
Purchased during 2016–08–27 to 2016–09–02: 4733.09774 US‑NBT
Burn TxID: 16ae480694edf5d6d0629c54c533e12593407305c81712d83a52cdf8985744b4
Blind Auction NSR #10 proceeds: 9949.50 US‑NBT
Burn TxID: 9788be53d4052f1413a1c1e057dfe28e98f3c8bbd624af893bfcf8bd304cb143
1 million NuShares were sold at 80 satoshi.
2 million NuShares sold into buy wall.
3 million NuShares sold into buy wall at price above 70 satoshi.
BTC Poloniex @jooize → Poloniex Gateway @jooize
NuShares sold at 75–81 satoshi with 1.93 BTC in proceeds.
NuShares sold above 80 satoshi with 7.2 BTC in proceeds.
how many and why did you sell that many shares yesterday?
With those funds it was decided to put them all on the wall for buy support.
Why put so much sell pressure on NSR? NSR is the one thing that is keeping nu alive. People are interested in rising currencies (NSR). It would be far more beneficial to support the price of NSR rather than suppress it. A higher NSR price = more BTC to strengthen Nubit peg.
A higher NSR price will only exist if there’s enough BTC to support the NBT peg, and that BTC needs to be bought by selling NSR.
It’s worth taking advantage of the good demand for NSR to generate the required liquidity to hold a stable peg. This activity in turn will increase confidence in Nubits, and therefore the value of NSR.
If too few NSR are sold, there won’t be the required liquidity to provide a strong peg, which would undermine the Nubits peg and the value of NSR.
As the peg has only just been recovered, my guess is that building up a good stock of BTC to support the peg is necessary.
But you could potentially be selling NSR for at least twice the value if you removed NSR sell pressure and let the market do its thing.
This is a tempting line of thought. I suspect NSR FLOT members had similar thoughts in late May and early June. The NSR price was dropping rapidly, and it didn’t seem like a good time to sell NSR. Better to wait for a price recovery before selling. But the recovery didn’t come. Instead, US-NBT dropped to below $0.20 as FLOT waited for a better time to sell NSR.
Our model prioritizes support of our currency for good reason. It works out best for shareholders overall. @DavidMc0 explained it well. Still, moderation in all things. That is why I have limited NSR sales to 2 million per day when the NSR price is below 70 satoshis.