NuShare holders: Shortage of US NuBits


#1

The number of US NuBits in circulation has more than doubled to 6.3 million in the last week. That is about the fastest growth rate we are set up to support. A grant of additional US NuBits from shareholders is on track to pass somewhere around the beginning of December 24th UTC. That is about 48 hours away. Until then, we don’t have possession of any additional NuBits to sell, and there is a risk of the price for US NuBits rising before the passage of the grant.

Shareholders can take action to protect stable US NuBit pricing in the following ways:

  • Sell US NuBits in the open market, particularly at Bittrex. If the price of US NuBits rises above $1 in the coming hours, it will be very profitable to sell NuBits, because you can be sure you can repurchase your US NuBits for $1 in just two days.

  • Mint and vote for this Liquidity Operations USNBT grant. If you are one of the 13% of active minters that are not voting for the grant yet, please vote for it. This will give us access to the grant faster. If you are a shareholder but are not minting, please begin to mint. Extra minting power brought to the network will increase the rate of blocks found in the next two days. Support for the grant is lagging by share days destroyed. Essentially, this means even a small minter with NuShares that haven’t been miniting for a while could make the funds available to us several hours earlier simply by voting for the grant and minting.

  • Lower park rates until there are ample US NuBits, so that no additional demand is created by them.

Of all problems that we could have, this is a very good one: excessively rapid growth in demand for our product. Still, there are some issues that require mitigation. My goal is to make shareholders aware of what they can do.


#2

The time of expected passage of the 2,000,000 USNBT grant we need to suppress the NuBit price has moved forward by several hours thanks to the interventions of minting shareholders. Thank you. Based on difficulty and vote percents, I estimate the grant will pass at 16:25 UTC on December 23rd.

Right now on the Bittrex exchange there are buy orders for US NuBits at $1.08. Anyone with US NuBits in their possession can and should sell them right now at a premium. You can be sure you can buy your NuBits back for $1.005 in about 24 hours.

While it is possible for Liquidity Operations to keep the peg even when demand increases by more than 100% in a week, doing so would require having huge amounts of funds on hand, that come with some non-zero risk of losing control of. For this reason, I am not making changes that would allow Liquidity Operations to support a growth rate in demand for NuBits in excess of 100% per week.

Once the market is more mature, arbitrageurs should help us keep the peg, or very nearly so, in this kind of situation.


#3

demand increases by more than 100% in a week

Is our voting mechanism on blockchain capable of handling this kind of rapid change? Last 10,000 blocks should be reduced to 3,000 blocks.


#4

I don’t believe the voting mechanism is the issue. We should have more reserves in multi-sig accounts. Once we had a $4m reserve exactly for that reason. That is still stuck in a multi-sig account I believe.
I know there is work being done for the multi-sig accounts, we really need those for reserves.


#5

I mean my “pledge share” suggestion, the voting system will quickly response to real world market and LP can borrow more coins from protocol. As coin demand increases, the demand for share also climbs, LP need more shares to borrow more coins.


#6

I like it, but I don’t believe there is broad support for it amongst shareholders.


#7

Agree. That’s radical change to our current peg mechanism, perhaps a good choice is to test it on B&C, anyway BKC is a blank paper without pegging.


#8

Does converting from NBT to NUshares protect from the imminent price drop and how can I achieve this with least slippage? Thanks


#9

Anybody know why Changelly dropped NBT? I’m presuming it’s temporary, but why? Is it related to the comment under “Exchanges” that they’re dependent on presence of a Liquidity Provider?


NBT peg temporary broken in a comedy way
#10

The grant has been received and liquidity conditions have returned to normal. Most of the 2,000,000 USNBT in the grant just passed have already been sold into circulation.

I will be advancing a 2 of 3 multisig grant for 4 million USNBT within hours.


#11

The entire grant of 2,000,000 USNBT received just hours ago has already been placed in circulation. The US NuBit price has started to drift upward from $1.

An additional grant for 3,000,000 USNBT is on track to pass on December 25th around 16:00 UTC. Once it passes, enough additional USNBT will be placed in circulation to suppress the price down to $1.

If you have US NuBits, you should take this rare opportunity to sell them for more than $1. You can bag an easy profit, then buy your USNBT back for $1.005 tomorrrow. Currently, an easy 10% profit is available to all US NuBit holders.


#12

@Phoenix Except I couldn’t sell yesterday or today because Changelly have delisted NBT. As the Chief of LO, have you no idea why? One cannot open a Bittrex account either. Trapped.


#13

Maybe they are undergoing an update. Nubits are still listed via the support page (https://changelly.com/supported-currencies), and there is no mention of a Nubits delisting via their blog. They only mention Nubits in 2015 (saying they are listing it). They said in Sept of 2017 they list as many as 70 tokens, but I dont see them via the exchange page. This might be something you email Changelly about.

I suggest you register with southXchange. Its the Nu recommend exchange.
https://www.southxchange.com/Account/Register


#14

I entered via Changelly recently. I have too many coins to use SouthXchange unfortuantely. I have emailed Changelly. I just wonder if anyone here knows if they and/or other exchanges have a pattern of delisting under certain conditions, perhaps liquidity related.

Thanks for your replies and comments and help. Appreciated.


#15

Just let operators know that you are exchanging high volume and exchange a low rate over time. Perhaps 10k an hour or so. Thats the responsible way to do so with a pegged coin with a micro cap.


#16

Wallet is inactive on Bittrex so Changelly etc. cannot trade Nubits.

“The wallet is disabled. This is usually due to the network having difficulties or the wallet taken offline due to a coin swap.”

Coin swap?

https://bittrex.com/status


#17

I posted an update on the shortage here.