Why NUShares is cheap?

[rismanleo]

why NUShare is cheap?

[Financisto]

In essence: Market Sentiment + Low Market Cap + High Available Supply + Dilution

In theory NSR’s price reflects NBT’s “skill” to keep price stability in the long run.

[huafei]

there are a lot lot nsr in the market

[Sebsebzen]

Has the total supply of NSR changed since last year, and if, by what magnitude?

[Nagalim]

Circulating supply was 834 mil at the beginning of buybacks according to my buyback stats page.

Currently, supply is 1630 mil. I’m not sure what is circulating (and don’t bother to care).

(1630-834)/834 = 95% inflaion

This is using the moment when supply was greatest. If we compare to any time previous the inflation will be more because less nsr was minted at that time. Comparing to any time after (but still before pheonix hit the scene) the inflation would also be more because of buybacks. So 95% is actually a lower bound.

[Phoenix]

(1630-834)/834 = 95% inflaion

This makes the 3 million NSR shareholders are paying me each month to ensure this never happens again seem like a pretty good deal. It is. Failures in liquidity operations can be very expensive. So long as shareholders continue to supply my department with sufficient NSR, I can say with confidence nothing like that will ever happen again.

[ConfusedObserver]

Failures in liquidity operations can be very expensive.

The ultimate failure is built-in, if there’s no revenue to pay for the costs.

So long as shareholders continue to supply my department with sufficient NSR, I can say with confidence nothing like that will ever happen again.

You are overconfidently ignoring that there needs to be a market for the NSR.
Loud-mouthed statements won’t save Nu.

Thanks to having no revenue combined with the NSR buyback program Nu managed to double the circulating NSR while being far below the reserve ratio it had before the buybacks began.

Well done…

[Sebsebzen]

So that means,in the best case scenario of total recovery of operations, marketcap of NuShares should be 1/2 of historical value. Right?

[Nagalim]

No, it means given a constant market cap (which has been anything but) the nsr price per share would be 1/2 what it used to be.

[rismanleo]

So, when NUShare high prices and expensive than the current price do you think?

[GreatScott]

In less than 6 months, the NSR moneysupply has more than doubled and that is still not enough to raise the necessary funds. It’s simple economics.

I can say with confidence nothing like that will ever happen again.

It amazes me how you think anyone believes that the next time the NuBit peg is in serious danger that you can save it by dumping NSR on the market quicker to prevent the market from rejecting your plan. There wasn’t any NSR buy support when your liquidity engine failed. You wouldn’t have been able to prevent the current market price from occurring even if you had your way.

[ConfusedObserver]

Why are you so negative and have so little confidence in the chief of liquidity operations?
Legend has it that rebels caused all this!

Is it maybe because @Phoenix never answers even simple questions regarding the economical situation of Nu and only jumps at critical comments complaining about the ‘negativity’?

[GreatScott]

It is my hope that @Phoenix is just illiterate when it comes to market forces and needs some education. But the cynic in me knows, and is probably right, that he is just a troll-whale trying to suck the money out from the people he purports to be doing such a valiant service for.

[ConfusedObserver]

There’s little indication for having doubts about this:

he is just a troll-whale trying to suck the money out from the people he purports to be doing such a valiant service for.

[GreatScott]

Right, I cannot really disagree with any of the cynicism on this forum. I recently tried explaining Nu to someone I care about and had to preface it with: “It’s very likely a ponzi scheme run by the dev and inner circle, but what isn’t these days in crypto? It’s a great idea that is centralized around poor decision making.”

It’s a high risk investment for sure, but I bought back my stake for less than 1/10th of what I cashed out at, so it’s a good high risk investment for my situation.