POLL for NuShareholders: What is Your Current Sentiment on Nu's Future? (Updated Version - July 2016)

[GreatScott]

My understanding of why Nu gave up on supporting USD/NBT is due to the fact that the only exchange that listed said trading pair received $XX (double digit) in exchange-wide trade volume per day. This lead people to give up on the idea of fiat liquidity almost completely. I have thought about using Tether as a tier of emergency reserve liquidity recently, but I don’t think our customers would desire another step between NBT and a bank account as part of standard procedure.

We certainly should not have PPC anywhere in our reserve liquidity. I think that is another serious issue with Nu, that it has no problem passing risk of the PPC market onto our customers, because many shareholders came from the PPC community.

[GreatScott]

USD Tether exists and seems to work now. I wonder what people think about re-starting this but using USDT as the conduit for enforcing our peg. This way you’re always exchanging NBT for something that is worth 1 USD by definition…

Why bother with NuTether, then? Is the question I leave myself asking. The only useful purpose for Tether in Nu would be an emergency tier of liquidity. I almost wrote up a proposal for NuPit. It is a website similar to Shapeshift where you send your NBT to an address and receive $0.95 worth of Tether. The NBT would get burned, and for running NuPit I would be granted a predetermined number of NSR as laid out in the motion, based on how many NBT were burnt or how much Tether was spent. It would only be a one way valve in times of peg stress.

At the end of my thinking on the topic, I decided I would need to ask for too much NSR to make it worth my while. And with the hyperinflation of NSR already underway, it is unpredictable how much NSR I should ask for. And is the NSR really that desirable anymore?

[jgeewax]

NBT pegged to USDT would be valuable (to me at least) because I can use the Nu chain to execute transactions – and it’s pretty zippy.

When I’m standing next to someone and want to pay, I really don’t want to have to find a bench and make small-talk while I wait for a single confirmation.

BTC is great for distant transactions (ie, when I’m buying something that then has to be shipped to me… minutes don’t matter), but it kind of sucks when you’re standing next to the recipient.

[GreatScott]

There is a/has always been a fear of centralization with Tether. That is why I joined Nu. What do you do when that fear comes to realization and Tether’s bank accounts are robbed?

I just do not think tx confirmation time is innovative enough to start a new DAC.

[mhps]

I don’t know anywhere that will take my USD and give me NBT.

@woolly_sammoth is making progress in something like this

[Discussion] Contract to create web interface code that one can use to sell/buy Nubits with fiat online

I propose to pay for a contract to enable opening up a new space of possiblities to buy/sell Nubits. This will have several benefits and features: Now if people wants to buy Nubits they have to register at an exchange. This discourages people from trying out with minimum hassle, and increases centralisation. With web sites set up using the software proposed people can easily buy or sell back Nubits. This software can be used to provide liquidity in NBT/FIAT pairs similar to the ALP software …

[mhps]

My understanding of why Nu gave up on supporting USD/NBT is due to the fact that the only exchange that listed said trading pair received $XX (double digit) in exchange-wide trade volume per day.

The nbt/btc liquidity operation takes volume away from nbt/usd merket.

[GreatScott]

The nbt/btc liquidity operation takes volume away from nbt/usd

You could rephrase this to say, “Shareholders put more liquidity in the nbt/btc market instead of the nbt/usd market” Couldn’t you?

[mhps]

You could rephrase this to say, “Shareholders put more liquidity in the nbt/btc market instead of the nbt/usd market” Couldn’t you?

Many don’t realize these two market compete with each other. Although it’s true that there is little speculation space in the nbt/usd market so there is not as much activity.

[Sabreiib]

Many don’t realize these two market compete with each other. Although it’s true that there is little speculation space in the nbt/usd market so there is not as much activity.

I remember in 2014, after @desrever temperorily designed the NBT/BTC pair before NBT trade on exchanges, Jordan made the decision to accept NBT/BTC pair, and I was astonished, this means Nu company becomes a BTC reverse speculation company.

Now Tether is trading on various crypto/Tether pairs, this is the beginning of their bankcrupt if no enough revenue.

[GreatScott]

Take a look at Tether. They do not, and have never, provided BTC market liquidity. But the result of that has brought them to a level of volume in the BTC market that we couldn’t achieve even when subsidizing it with large and expensive walls on a tight spread.

They don’t even have to pay anybody for liquidity!

[GreatScott]

Now Tether is trading on various crypto/Tether pairs, this is the beginning of their bankcrupt if no enough revenue.

Adding additional crypto markets doesn’t harm tether’s bottom line since they only support the fiat/tether peg. The rest of the markets just fall into line.

Their bankruptcy will come when governments raid the Tether bank accounts or they confiscate funds from a ‘bad actor’.

[Sabreiib]

they are smart by avoiding btc pair, but they still have expenditure: employees, rent house etc.

[GreatScott]

They supposedly prove their USD reserves. Reserves are always higher than outstanding. What is their overhead? I imagine it is practically nothing.

[Phoenix]

Take a look at Tether. They do not, and have never, provided BTC market liquidity.

Some bot has consistently provided very good liquidity on the Poloniex BTC/USDT at less than a 1% spread. I don’t know who is running the bot, but most likely Tether is offering the liquidity.

It appears Tether followed our lead in regard to providing liquidity on BTC pairs, and for good reason.

[GreatScott]

You could run a 1% bot on polo and make a small profit thanks to tether being listed on BitFinex. They did not follow our lead, as you say. And like we can’t prove you are Jordan Lee, you cannot prove Tether did what you allege.

[Sabreiib]

They supposedly prove their USD reserves. Reserves are always higher than outstanding. What is their overhead? I imagine it is practically nothing.

If you buy something at $1 and sell it at 1$, you have no profit, so what’s the point of your business? In real world, how many businessmen dare to do business without proper revenue model?

Or Tether has a long term plan: they just provide free service to cultivate customers habit, and after many years they will harvest.

[GreatScott]

If you buy something at $1 and sell it at 1$, you have no profit, so what’s the point of your business? In real world, how many businessmen dare to do business without proper revenue model?

Don’t you see any irony in posting this on this forum?

Or Tether has a long term plan: they just provide free service to cultivate customers habit, and after many years they will harvest.

I have no intention of defending or promoting tether. But in the real world we look at competition.

[Sabreiib]

I’m not familiar with tether, just a glance of their white paper a year ago, so I agree with you that tether also has the revenue problem.

To build up a stable currency, the proceed from selling USD token should be invested to somewhere to get profit to support company’s operation. I believe this is a common view of the majority forum members. After 1.5 year Nu operation, we should feel it more than any other crypto.

[GreatScott]

so I agree with you that tether also has the revenue problem.

Tether has $7 million in the bank. It is silly to compare it to Nu’s fundamental mistakes.

[Sabreiib]

Tether has $7 million in the bank. It is silly to compare it to Nu’s fundamental mistakes

I remember they are from a traditional company, and it’s easy for them to maintain peg at USD pair in this way, but the capital is naturally for profit, their money’s opportunity cost is also high, what’s their require rate of investment? I cannot find their incentive to run this business. Do you know that?