The aim for Nu to achieve its goal with NuBits must be to reduce impact of volatile reserve assets. Nu does that by appealing to investors so they will support the currency in declining demand. Motivators include the reserve ratio giving them value via NuShare buybacks (or dividends), and the network becoming self-sustaining and profitable by transaction fees or other operations.
Executing this model with 100% tier 1–4 reserves is what's unviable. The model transfers volatility risk from the reserve assets to investors. There will always be risk for currency holders!
You need to reduce tier 1–4 reserves or gamble everything on reserve asset volatility, which doesn't seem like an interesting model. Would it be just a collective fund by all NuBit holders where they risk losing value to holders who withdraw before them in a reserve asset decline, and any increase in value would be distributed equally? The Nu model is to gamble 46.5% (currently) on reserve asset volatility, and the rest on investor confidence.
NuShare sales did recover Nu. There is only evidence that the model works. Liquidity operators gave up the chance to prove the model wrong when they withheld reserves. NuBit holders acted as they still had confidence in the promise of $1.00 per NuBit while some reserves were already being withheld by widened spreads, but when the NuShare sale proceeds were offered at $0.10 per NuBit, what are they to believe?
None of that makes sense.
There was at least $27,000 available (maybe $38,000). Funds will always be limited to some degree, but it's irrelevant to the point. They began devaluing NuBits before the NuShare sale was performed. More importantly, they did sell NuShares once for $3,677 but withheld the funds. You make assumptions that just can not be made with the available data.
Is it difficult to see any other option? What they did is equivalent to waving a banknote in front of the owner and pulling away when they try to grab it.
# BTC was ~580 USD on June 6, 2016
580 * (35.74 + 12.287) = 27,855.66
27,855.66 + 10,568.606 = 38,424.266
Plus what @masterOfDisaster held in the gateway already along with the NuShare sale proceeds. If NuBot reports value the same regardless of spread it appears he stole more than 13 BTC. Not to mention the 25,560.4409 US-NBT reported we've previously neglected.
# US-NBT / btc_value
10,568.606 / 580 = 18.2217344828
That theft isn't relevant to us today, and not in any way basis for the points I've made.