Peg lost?

[Sentinelrv]

Nu is not a Ponzi. Yes we made mistakes, but this has never been done before and we lack experience and knowledge. Lessons have been learned and we won’t make those same mistakes again. This whole situation is because our reserve ran low. NuShare buybacks were a huge mistake. For some reason we were convinced that NuShares could back the peg, therefore we put part of our reserve funds into it. It didn’t work. Other expenditures are to provide liquidity and projects to create demand for NuBits.

It is possible for Nu to become self-sustainable, but it requires people to actually use the network. NuBits are burned as part of transaction fees, eroding the supply. If enough NuBits are burned in fees from people using the network to balance the funds that need to be spent providing liquidity for the peg, you have self-sustainability. We can’t achieve that though unless people actually use NuBits. If we were just spending people’s money as they bought NuBits without trying to achieve self-sustainability, then I would agree with you that it’s a Ponzi. It’s not though. We are trying to build something here, but it’s incredibly difficult to gain enough trust for people to use the network so we can erode the NuBits supply.

[huafei]

price now

$ 0.562484
0.00097783 BTC

[Financisto]

price now

$ 0.562484
0.00097783 BTC

Now I call this a black swan event…

Did any LP shut his Nubot off?

Did any pool cease operations?

[Sabreiib]

Nu is not a Ponzi. Yes we made mistakes, but this has never been done before and we lack experience and knowledge. Lessons have been learned and we won’t make those same mistakes again. This whole situation is because our reserve ran low. NuShare buybacks were a huge mistake. For some reason we were convinced that NuShares could back the peg, therefore we put part of our reserve funds into it. It didn’t work. Other expenditures are to provide liquidity and projects to create demand for NuBits.

Nushareholders are a bunch of amateurs tring to accomplish one of the most difficult monetary mission. When they do business, they even don’t use calculator. And they are too confident to listen any criticism/advice.

Most customers will NOT come back when BTC price drops, sorry for this prediction.

[CommunityObserver]

@Sabreiib
I agree with some of what you say, but hyper-confidence leads to mistakes, which leads to humility. I think Nu is in the latter part of this now. I also think the Nu user base is too small for this to be monumental, though the longer this goes on the worse the issue is.

[CommunityObserver]

I am pretty damn sure that when Nu was first launced i parked my nubits for more than 3 months, with the same 3 month rate.

pics or it didnt happen dr. troll. If what you say is true, others would have experienced it, and very likely would have been fixed.

[Sentinelrv]

I also think the Nu user base is too small for this to be monumental

I looked around today and saw absolutely no posts on Reddit or news articles about what’s going, so I think you might be right. Nobody seems to be paying attention.

[CommunityObserver]

Even if an article were written by a troll or two or five, the biggest attention is on BTC, eth, and dao. A dollar crypto is less valuable in a bull run, but much more valuable in a bear run, which may explain our issues. Its the first bull run of Nu, and the capitulation was just barely finishing when the funds were bought back. Practice makes perfect.

[MaVo]

It might be for a few months, but it still is a lot of money. Again, tricking people into thinking something is a good investment, when it is clearly not, is immoral. A bad thing. In this case, a scam, a ponzi, which many people joined to either profit from or didn’t really know it was one and were dragging more people in.

Does it matter what technique you use to fuck people over? Compared to the amount that Bitshares burnt in those pockets who didn’t play it smart, Nu’s fault is about peanuts. And I am not saying that I like that fact that people have now been disappointed in any way, but seriously… Whether you bash or troll or whatever, you will remain a funny clown.

[rtGG]

You joking? Do you take pics when you park your Nubits? Again, I said I think I did so when the network first launched, so it is not impossible that there was a bug back then, which was then fixed.

[rtGG]

What you talk about is BitShares, not about the BitAssets. Also don’t forget that all coins started very high and regardless of their technology they went down. The price doesn’t indicate anything, I am talking about your product. A retarded, non-collateralised product that fail. I didn’t buy BitShares high and I don’t expect a peg. So you can cry when your tokens go to 0.

[rtGG]

Cryptocommunities are too small and they can’t look beyond what satisfies themselves. Also DAOs can’t fix stupid people. The ex-leader of BitShares pointed that out.

You needed more mechanisms, money and sound management to achieve those goals and you failed in all of them.

You might not consider it a ponzi and the goals wasn’t that this project is a ponzi, but the structure of it was that of a ponzi. What is so fucking hard to understand? Fuck my trolling, fuck everything. If people didn’t buy Nubits, the value of the Nubits of the current holders would diminish and that’s what happened.

It wasn’t about people profiting, but sustaining the value of Nubits, which by the way was created out of thin air. When the first Nubits were created, what was backing them? Nothing. In the long term many people got in, you had reserves and you had liquidity pools to which you were giving good amounts in Nubits (bad choise, as that created a selling pressure) and even if the network gave interest rates short term, until the storm is gone and that didn’t create high inflation, when do you know that the storm is over?

You project required many things to hopefully go your way. Even if you had 400.000$ worth of Bitcoins, if the price of Bitcoins went up to 1000$, you still wouldn’t be able to hold the peg. The project started after the Bitcoin bubble and that’s why you had some initial success. Get over it.

[MaVo]

Thanks for enlighten me. I hope you post a lot more in the future as I can see the tremendous potential in your contribution to making crypto a thoughtful and innovative space.

The idea was to create some kind of perpetuum mobile with the liquidity engine, but indeed it failed in the first place. Now I ask myself why would someone like you spend so much time on talking about the things that won’t work in the future instead of developing own things that will work in the future? And you can be damn sure, if you ever try to develop something and it fails, I won’t even consider for a second to sign up on your forum and provide non-constructive criticism.

[rtGG]

I clearly stated. Anything non-colateralized is pointless. Pegging to FIAT is almost pointless.

MakerDAO seems like a pretty good idea, Smartcoins are a good idea as they have collateral, Tether is pretty good at the moment, even if I don’t like their co-operation with banks. At least you can get some of the Bitcoin advantages, whilst using the existing system.

There are many projects that I like. Monero, Dash, Ethereum, BitShares and many others. I liked some ideas on this project and I followed Nu a bit. I then realised how shit it was and I was waiting to come here and bash when that would happen. I felt bad that I couldn’t open a short position and make tons of money with your collapse, so I gain satisfaction via another route.

Read my other post and you will get more enlightened. I feel bad for people losing money, but it was so obvious at the same that I don’t know what else to say.

[MaVo]

I felt bad that I couldn’t open a short position and make tons of money with your collapse, so I gain satisfaction via another route.

Your attitude earns my deepest respect. Regrettably, you seem to clearly have some unfulfilled desires. On behalf of the Nu network, we are happy to have taken some of this awful burden off you. Actually, I feel with you. It must be awful to gain satisfaction from other peoples’ failure, but I guess it is the only way to put your own achievements into a halfway decent perspective. This is just speculation as it is of course possible that you are a person of outstanding merit, but I leave that up to everyones imagination.
Now before you think that I will spend more time on chatting with you to help you get through the day, this is my last response as I got stuff to do (you probably as well). But the way you think and act clearly compelled me to respond.
Thanks for your inputs!

[Nagalim]

Tether is more in debt than we are.

https://wallet.tether.to/transparency

Bts uses the same collateral as we do, shares. They are poised for the same black swan event if people actually started using their tokens. If there were 700k bitusd in existence and people started liquidating them they would black swan. The thing stopping this is that they never had any adoption.

[rtGG]

The collateral there doesn’t work in the same way. You can open short and long positions. You borrow the USD by depositting 2-4x collateral and you run under the threat of a margin call, but you can always manage that appropriately.

Tether is a weird story, but at least they are transparent.

You tried to achieve the unachievable. Crypto started to get rid of the old system and you tried to bring the old system to crypto. What a joke

[nmei]

What is crazy to me is that every one of us who bought NBT for ~$1 is now willing to panic and sell for less. If we don’t sell, we hold the peg.

The problem really is the supply outweighs the demand.

[Dhume]

It’s a problem for every currency, if suddenly everyone who holds say the Canadian dollar starts dumping them for US dollars their dollar will decrease in value. Right now the community is divided on what to do I hope we can all get on the same page doing nothing will only make the problem worse.

[Chronos]

What is crazy to me is that every one of us who bought NBT for ~$1 is now willing to panic and sell for less. If we don’t sell, we hold the peg.

The problem really is the supply outweighs the demand.

Yes, that’s called a market. It sounds similar to this logic:

“What is crazy to me is that every one of us who bought BTC for ~$1000 is now willing to panic and sell for less. If we don’t sell, the BTC price could still be $1000.”