Why shouldn’t we be concerned? Seems like everyone on here is extremely confident will see a bounce back to the December highs and then surpass them, but this dip/crash is now 5 months long. So I’m curious as to why so many of you are confident?
NuShares were designed as the most volatile crypto, the recipient of not only NuShare volatility but also changes in the level of NuBit demand. In 2018, we experienced a massive asymmetry in the liquidity of NuShares and NuBits. US NuBits were listed on Bittrex, a very large exchange, while NSR had no major listings. While the asymmetry means NuShares are not very effective at supporting the price of NuBits, all that is needed to restore the peg is a restoration of our historical NSR : NBT liquidity ratios. We don’t even need to do anything new or grand. Is there risk? Sure, there is a lot of risk. There is also tremendous potential for reward.
There are quite a few initiatives ongoing that can bring us the recovery we are looking for. @woolly_sammoth is developing a modified NuBot that is designed to give us a good source of revenue in the short term, even before any USNBT peg restoration. This is up and running presently on Bittrex and we are increasing the amount of funds being used gradually. We are offering liquidity at market price with a 2% spread, netting us a small profit on each trade from the spread. It our hope this will make liquidity operations self-supporting and that we can build the operation from there to provide peg support from trading profits.
Also, we have maintained the peg on CNNBT all this time. We are discussing how we can increase liquidity and marketing on that product, perhaps by segregating CNNBT proceeds to make supporting that peg reliable.
Take a look at the NuShare chart:
It is a rocky ride. There was an extended period in 2016 and 2017 when NSR pricing was similar to what it is today. Yet, investors realized gains of 10,000% (100 fold gain) in early 2018. Could it happen again? Sure it could. Will it? That is up to market participants. No one knows for sure. What is known is that NuShares are an exceptionally volatile crypto with a unique purpose among cryptos.
I believe our design has unique merit among the stable currency designs that have been offered. It deserves further exploration. We know, and have always known, that NSR cannot effectively support NuBits at current NSR : NBT liquidity ratios.
In the end, if a small set of investors decide that the network has merit, it will work. We aren’t suggesting the network is as valuable as the dominant player in the market. However, the NSR market cap is currently under $1 million. That strikes me as oddly low for a 4 year long blockchain project that has created so many important innovations and has so much infrastructure built. The market cap has been above $60 million just earlier this year.