NuShares Supply Greatly Exceeds Demand

[rodchi]

There are too many NuShares on the market, and it is driving the price into a downward spiral IMO. Are we going to implement a method to destroy NuShares to maintain investor value? Does anyone know when the next dividend payment will occur?

I think that NuShares peaked at around 0.000017 BTC on Bter a few weeks ago, and they are now being sold (by a significant number of people) in the 0.0000075 BTC area. I think that we need to slow down distribution of undistributed NuShares, and focus on letting people buy up what is already on the market. Better yet, I’d love to see us destroy all of the undistributed NuShares.

[tomjoad]

Undistributed NuShares

Same response as the one I gave you in the other thread.

[desrever]

I second every single word @tomjoad tomjoad said. Do not expect NSR price to behave like any asset we have seen now. Share **holders ** should hold, and while they are on it, they should contribute to Nu to see spectacular dividends, community, adoption, and development.

The price will follow, don’t worry, we are in for the long run.

[rodchi]

Thank you tomjoad. I appreciate and understand your perspective. I love Nubits and Nushares, and I have invested a lot in both. It is just frustrating to see NuShares being dumped on the market, and driving the price down. The NuShares are being intentionally dumped at lower that the current asking price and this is preventing the price from going up. So what are we going to do as a community to get the price going in the right direction?

I think that dumping Nushares on the market is counterproductive: nobody wants to buy a continuously depreciating asset. So what I propose is that we encourage people to buy NuShares on the open market at market prices. I think that we either need to raise the price of undistributed NuShares to more closely match the price on the open market, or we need to slow the rate of distribution. Someone is selling a lot of NuShares, so it is obvious that someone would was distributed NuShares does not have faith in the long-term viability of the system. That is a problem. if you distribute NuShares to someone who is supposed to be a partner, and they then proceed to dump them on the market at below market prices, then you have picked the wrong person to distribute to. We can choose to ignore this, but I have not ever seen this strategy work in the crypto world (e.g. Asicminer’s price drop from which there is no possibility of recovery).

We cannot change the fundamentals laws of investment, no matter how much we try. Investors buy based on two factors: consistently rising price and consistent dividends.

[rodchi]

I second every single word @tomjoad tomjoad said. Do not expect NSR price to behave like any asset we have seen now. Share **holders ** should hold, and while they are on it, they should contribute to Nu to see spectacular dividends, community, adoption, and development.

The price will follow, don’t worry, we are in for the long run.

Thank you for the words of encouragement, dsrever. What you’re saying makes sense. I hope that you are 100% correct.

[tomjoad]

I think that we either need to raise the price of undistributed NuShares to more closely match the price on the open market, or we need to slow the rate of distribution.

The price of undistributed NuShares is currently much higher than the open-market price. This post was made 23 days ago.

Undistributed NuShares

Effective immediately, the price of undistributed NuShares will be 0.005 NBT or the equivalent of 0.0051 NBT if payment is made in PPC or BTC.

[Yurizhai]

It sounds like you were expecting things to happen way too fast. Perhaps take a look at the road map @tomjoad put together and get a better idea of the realistic growth Nu will see. There is still a lot of work to do.

The idea of destroying shares or something like that slightly over 2 months after launch is absurd. IMO, Nu is still under the radar in an overall cryptocurrency bear market.

[rodchi]

@tomjoad The price of undistributed NuShares is currently much higher than the open-market price. This post was made 23 days ago.

Okay, excellent!

[rodchi]

It sounds like you were expecting things to happen way too fast. Perhaps take a look at the road map @tomjoad put together and get a better idea of the realistic growth Nu will see. There is still a lot of work to do.

The idea of destroying shares or something like that slightly over 2 months after launch is absurd. IMO, Nu is still under the radar in an overall cryptocurrency bear market.

Fair enough. I pray that you are correct. I have a lot invested! Thank you for taking the time to give such detailed responses @Yurizhai @tomjoad and @desrever

[Chronos]

When NuBits first launched, shares were sold for 0.0018 NBT by Jordan. Now, the price is 0.005 NBT, which has completely cut off new supply for the time being, as Tomjoad mentioned. I think it’s normal to see some selling in between those prices, by early adopters who bought at the low price and want to diversify. If those sellers run out of NSR, the price could jump suddenly, since Jordan’s price is currently well above market price. In the past week or two, buying pressure has been very steady.

A gambler thinks in terms of minutes and hours.

A speculator thinks in terms of days and weeks.

An investor thinks in terms of months and years.

[desrever]

np @rodchi , I also understand your point of view. Think about the low volumes of NSR to estimate how much people is holding vs selling.

@Chronos is right, some early adopter might be differentiating a small part of their investment for whatever reason.

And if you want to see that price going up faster, there is tons of work to do !

[rodchi]

When NuBits first launched, shares were sold for 0.0018 NBT by Jordan. Now, the price is 0.005 NBT, which has completely cut off new supply for the time being, as Tomjoad mentioned. I think it’s normal to see some selling in between those prices, by early adopters who bought at the low price and want to diversify. If those sellers run out of NSR, the price could jump suddenly, since Jordan’s price is currently well above market price. In the past week or two, buying pressure has been very steady.

A gambler thinks in terms of minutes and hours.

A speculator thinks in terms of days and weeks.

An investor thinks in terms of months and years.

Yeah, I’m into NuBits/NuShares for the long-haul. The system is very well designed which makes me shocked to see people dumping NuShares at what I view as low prices (I concede that I don’t know what they purchased them for). I think that they will regret selling so low in the long run. I can definitely see Nubits helping to reduce the volatility of Bitcoin since the BTC used to help maintain the Nubits peg are temporarily taken out of circulation.

I really see it going like this long-term:

1. NuBits will eventually replace Bitcoin as the crypto-currency of choice for people completing low to medium value transactions.
2. Peercoin will continue to be the instrument used to pay NuShare dividends. BTC/PPC/USD will be used to maintain nuBits pegged at $1.00.
3. Bitcoin will become the crypto-currency of choice for people completing high value (e.g. multimillion dollar transactions). So Nubits will be like a $1 bill, while Bitcoin will be like a $100 bill.
4. NuShares will be the crypto-currency of choice for people who are long-term investors who want to earn dividends and enjoy a continuously rising share price.

I have positioned myself long-term for all of these eventualities by holding Nushares/NuBits/Bitcoin/PPCoin in a roughly 1/1/1/0.1 ratio, and I plan on doing so for several years to come.

[rodchi]

np @rodchi , I also understand your point of view. Think about the low volumes of NSR to estimate how much people is holding vs selling.

@Chronos is right, some early adopter might be differentiating a small part of their investment for whatever reason.

And if you want to see that price going up faster, there is tons of work to do !

@desrever Thank you for the link! I’ll go through the list today and see how I can help.

[JordanLee]

I’m quite surprised by the original post. It is hard to understand how they reach the conclusion that the share price is in a downward spiral.

The open market NSR price is currently 0.00339 NBT. This compares to a price on opening day, September 23rd, of 0.0018 NBT. This is an 89% increase in 65 days. This is an annual return rate of 3,689%. It is a stunning return.

Dividends have been issued in an amount approximately equal to 1.7% of the market cap. This is an annualized dividend rate of 9.5% of the share price. This is also spectacular.

These incredible results occurred in the context of a powerful bear market for Bitcoin and Peercoin. Since September 23rd, Bitcoin is down 13% and Peercoin is down 49%.

In these 65 days the number of shares in the market has increased more than 50%. Given that 60% of NuShares have been distributed as of yesterday, we know this pace of distribution can only be sustained for two and a half months, after which NuShare supply must drop to 2% per year.

Share sales are important as they decentralize network ownership and raise development funds.

I’m pleased with the performance and am proud to have been able to provide this kind of opportunity. I believe the rapid price increase in the face of a sharp increase in supply indicates the market recognizes we have something important and special. Still, there are ample signs that very few, even within the Bitcoin community, know who we are.

My mention of annualized return rates should not be interpreted as a prediction of what will occur. I’m happy to let the market decide that. It does help us understand the current trajectory of the price, however.

[teek]

shhhhhhh you’re talking the share price up, some of us are trying to acquire

[rodchi]

@JordanLee Hi Jordan!!

I’m looking at the BTC/NSR price on Bter. It peaked at 17 units a few weeks ago (I dont feel like writing a lot of zeroes…lol), and it now stands at about 8.5 units (ask price) to 7.5 units (sell price). I bought in between 8 and 10 units, with my average cost being about 9 units or so. So it is frustrating for me to see people dumping at 7.5 units when I have paid as much as 10 units. I have never bought NuShares for NuBits because all of my NuBits are parked until around Christmas time. I will try this after my NuBits are unparked.

Anyway, I was not trying to diss NuShares. I hold a lot of them, I will accumulate more. I am just commenting on what I was seeing here earlier: https://bter.com/trade/nsr_btc

Every time the price would try to rally, someone would dump a bunch of NuShares at about 7.5 units of BTC. It looked like they were intentionally trying to suppress the price. For this reason, I thought that we should either reduce the supply of NuShares, or do anything possible to encourage people to buy NuShares. However, I am very satisfied with the answers that I have received here, I will do what I can to help educate people about NuBits and NuShares. I have started by posting a message to the Bitcoin Reddit explaining why I invest in both Bitcoin and NuBits. I won’t link to it again here for fear of looking like I am trying to pump up the post, but you can easily find it there.

Anyway, I am very long NuShares/NuBit, and I look forward to accumulating a LOT more.

[lg15x]

We don’t need to worry about the price of NSR. This is a free market where people have right to sell or buy NSR per trading price.

If someone wanna sell, let him sell, he will not get benefit form Nubits growing.

[ronny]

Without going too much into details, at CCEDK we started one week ago when price at Bter was 0,0000081 to acquire Nushares for the possibility of bringing it slowly to an increase. Gradually working the price on the various pairs we are from today actively working NSR on CCEDK with the trdaing pairs NSR/BTC, NSR/PPC, NSR/NBT and NSR/CNY. I am happy to see that my work throughout the week has resulted into a general increase to some 0,0000091-93, whereas my focus point onwards in coming week means working NSR at around NBT 0,0034-36. Our airm will be to offer the Nushares at a price gradually increasing based on demand and supply with a liquidity already working on the exchange of some 8-9 million Nushares, expecting this to increase once everyone gets ther word out that at CCEDK you are able to deal with Nushares on an active scale between 4 pairs in fact, and with the NBT related pairs we are in fact speaking 8 pairs on CCEDK directly or indirectly involving Nushares.

We believe in doing our part in bringing both NBT and Nushares out to the world, and hope as many of the Nubit community will keep backing up the work we are doing to constantly improve and better the user experience on CCEDK, but as well creating awareness of Nubits and Nushares through the work we do on our other currecies as well.

I believe personally that bringing the other currencies into the picture making them interact with NBT and NSR like BTC and PPC is already doing, it will not only help NBT get out there quicker, but also improve the overall acceptance of the Nubit as a currency here to stay.

Thank you sofar all of you who has been around CCEDK sofar. The ones who has not yet, do not be afraid, We are here to serve, and we serve well, in the belief that serving is the road to success not only in real life but also in this world of virtual reality.

[ronny]

And it seems like working, as from yesterday we have seen an increase of 60% from 810 sat to 1300 at Bter and still slightly lower at CCEDK. If Nushares increase signifys health and improvement of NBT then we are on right track to the moon…

[mhps]

Thank you sofar all of you who has been around CCEDK

Thanks ronny. CCEDK is highly trustworthy. My biggest headache with it is the account trade history. It is time consuming and error-prone to work with. I suggest CCEDK change to a more friendly format that puts transaction fee in the same line of each trade, and puts deposit and withdrawal in the same table.
If changing the current format will break too many things, then maybe adding a link of “download history” to export in the format above?