NSR is under 0.0075 (the current purchase price from JL) - Some speculation

[cryptog]

NuShares (NSR) price, charts, market cap, and other metrics | CoinMarketCap

Why?

Frustration from some shareholders that do not care about the fixed price offered by JL and that do not see any strong demand/supply from JL?

This is what I would speculate.

[tomjoad]

As I posted elsewhere:

January 9, 2015 - NuShares reach $0.01 for the first time

For conventional stocks and equities, trading volume below 1% of market cap usually equates to extreme volatility. The true value of the Nu network won’t be known for some time - right now everything is just speculative noise. I would expect we’ll see plenty of wild swings in the early days.

The price of NSR will continue to be volatile for a long time while consensus develops on what the value of the Nu ecosystem is worth. Attempting to assign causation with such low trading volumes (0.2% of market cap today) is impossible.

[creon]

The NSR price follows the NBT/BTC price. I cannot really explain why this is the case but there is a strong correlation that cannot be denied. Maybe someone with a stronger economics background can explain this coupling.

[cryptog]

I agree. That is this is pure speculation from my side. By the way the ratio of bitcoin volume/bitcoin market cap is only 1% right now and for litecoin we have 2%. So maybe we should get 5 ~10 times the current ratio we have for NuBits before assigning any possible causes.

What we can say for sure is that the ratio is still very low for Nu. Maybe because not so many shares in circulation and/or not so many people willing to sell or buy or bot.

I would speculate that so many people are willing to sell at those low prices.

In any case, it is an opportunity to buy more NSR.

[cryptog]

Interesting. Any data plots?

[creon]

Coinigy is so awesome lol

Transparent graph is NBT, opaque graph is NSR, purple/pink curve is the comparison (difference).

[cryptog]

Indeed. It seems homothetically correlated.
But if you think about it, when NBT/BTC increases or decreases, that means BTC is volatile, which should create demand for NBTs (I noticed the trade volume of NBT increases in both cases); that in turn should increase the demand for NuShares in both cases.

[creon]

Again, I am not an economic expert, but I could imagine that the NSR price doesn’t directly correlate with the NBT price, but with the amount of NBT hold by people (which is large on a BTC downtrend and smaller on an uptrend).

[cryptog]

ut with the amount of NBT hold by people (which is large on a BTC downtrend and smaller on an uptrend).

Well I noticed the volume of NBT trade on an uptrend of BTC was important last time, even comparable to when BTC is in a downtrend.

[mhps]

The NSR price follows the NBT/BTC price. I cannot really explain why this is the case

My thoughts on it is here.

[cryptog]

So the floor in “and nushare is still holding the same price in usd.” has been crushed?

[Chronos]

The current price from JL might provide a price ceiling (because buyers could buy from JL instead of from the market). However, it certainly doesn’t provide a floor. Sellers can’t sell their NSR back to JL for any price at all.

Thought experiment: If JL started charging 1 BTC per NSR, would the value of NSR jump to near that level?

[Ben]

Thought experiment: If JL started charging 1 BTC per NSR, would the value of NSR jump to near that level?

No, I don’t see a rational reason why it would. Actually, I believe a case could be made that the net effect would be to reduce the going rate of NSR for irrational reasons.

[mhps]

Thought experiment: If JL started charging 1 BTC per NSR, would the value of NSR jump to near that level?

If JL has sold bulk of existing NSR at 1 BTC per NSR, the value of NSR would jump to near that level. See what I mean?

[cryptog]

we got back to 0.003 level
NuShares NuShares $ 2,453,458 $ 0.003013 814,209,751 NSR * $ 1,616 8.48 %

[crypto_coiner]

who is buying and why?