For trading EOS on Bitfinex, knowing how the Initial Coin Offering (ICO) distribution system works is critical because of the possibility to use Ethereum at https://eos.io to often buy EOS much cheaper than market price!
EOS ICO Token Distribution System and Impact on Bitfinex Trading?
Do you have any EOS on Bitfinex? Are you trading or trying to hold it? If so, the information seen here might help with losing money holding EOS while 2 million more are given out every day often below market price!
Alternatively, what I share here might help if you want to buy into EOS to wait for the lowest price point during the ICO and/or to buy a little bit over time instead of buying all at once to be in position before excitement builds over transfer off of the Ethereum blockchain. While the price could be higher before the transfer than it is today, it seems nearly certain to go down much further first given what I am about to show you.
This system allows for buying the EOS token often in a much cheaper rate than it's actually trading on Bitfinex.
Two weeks ago when I filmed this as a video, EOS was trading at about $0.71 on Bitfinex. Today it is under $0.60 and this token distribution system is likely to take it under $0.20 before it is finished!
If you do the math, which I've done to show you this example, earlier on the day of preparing this for you 4,445 Ethereum or so were put into the crowdsale at about $300 per Ethereum.
4,445 x $300 = $1,333,500
The price equaling about $1.3 million divided by two million EOS given out at the crowd sale.
$1,333,500 ÷ 2,000,000 = $0.66
Long story short, the crowdsale that just finished a little while ago and is going on every single day for about 254 more days, this two million distribution in exchange for Ethereum nearly guarantees a consistent price drop on Bitfinex.
Because if you can purchase EOS through the crowdsale at $0.66 and then you can get $0.71 for it or $0.72 for it on Bitfinex, that's allowing millions of dollars every day of EOS to be bought at below market price, which then is worth immediately selling to make that guaranteed profit.
Then every single day it happens a few hours before this, so it's 11:00 AM Eastern Time. An hour or two ago, every day, savvy traders are checking how much Ethereum, what the price of Ethereum is, and how much EOS is coming out. Every day, anytime the price is below market price, the savvy traders are dumping Ethereum into grab the cheap EOS and then more than likely dumping it right away on the market to make that guaranteed profit.
Therefore, just holding EOS when about three times as much of it is going to be as is currently available. Right now, there's 377 million EOS in circulation. The total supply is going to be a billion within the next 250 something days and it's being given out two million every single day.
For trading, this is very bad in terms of just wanting to hold. My recommendation is for this reason, to not hold any EOS until this token distribution is done because no matter what the development team or what comes out, or what happens, there are so many new EOS tokens being given out every single day through this system.
Now, if you want to buy it, this is a good system to use if you're allowed to buy it based on your country, and if you see the prices to get it cheaper. Now, beware, other people are watching this as well. Sometimes this could actually backfire if enough Ethereum pours in at the last minute.
It might be possible to buy it at above market price, and then feel the need to hold on to it.
Well, the problem is every time there's a day worth bought below market price, that's almost a guaranteed down sell. Anytime there's a price spike on one particular day, anyone who's been buying in for cheaper is waiting for another great opportunity to cash out.
As you can see in this one day here, it went from $1.28 as probably a huge buyer cashed out, down to $0.90 and then it's consistently dropped.
I personally believe this token distribution system will drive the price down to maybe even below $0.10 and potentially $0.20 or $0.30. It was $0.72 the day I filmed the video for this which was on September 30, 2017 and today on October 13, 2017 when the post is ready it is down below $0.60. This token distribution system is essential information to know about trading on Bitfinex.
You might think, "Jerry, you're stupid. No one could possibly not know about this. Everyone knows about this."
I used to buy and sell a bunch of cryptocurrencies on Poloniex and the majority of them I knew almost nothing about. I hope this has been helpful if you've bought EOS on Bitfinex to realize the bigger picture and to understand how that is impacting the EOS/US Dollar price for the next year in buying, selling and trading.
Thank you very much for reading this post on Steemit, which was originally filmed as the video below!
I appreciate you being here and I hope you have a wonderful day today.
If you found this post helpful on Steemit, would you please upvote it and follow me because you will then be able to see more posts like this in your home feed?
Love,
Jerry Banfield with edits by @gmichelbkk on the transcript by GoTranscript
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Or
Please stop upvoting this moron scammer! EVERYTHING he is charging people for is available for FREE! DO NOT SUPPORT THE SCAMMER @jerrybanfield!!
Nice $16 self upvoted comment!
Please stop upvoting this moron scammer! EVERYTHING he is charging people for is available for FREE! DO NOT SUPPORT THE SCAMMER @jerrybanfield!!
Dude you are awesome . I learned so much seeing your youtube videos and now came on steemit after seeing your youtube video. Don't get affected from such people.
DO NOT SUPPORT THE SCAMMER @jerrybanfield!!
Hi, why do you say he's a scammer? What do I get for free?
yes Im very bullish on EOS.. it seems they have the best chance for mass adoptions I think
What does bullish mean? Im new to this, very interested in trading - learning, not easy. There is a lot of information out there but no simple how to.
Very simply, it means the market is making higher high and higher lows. Moving upward. The opposite is bearish. Where the market is making lower highs and lower lows.
If you say I am "bullish" is means that you consider the market to be in an up tread, or put simple you believe prices will go up.
To be "bearish" is the opposite, meaning that if one is "bearish" on the market then one would believe the market is on a down tread, or heading to lower prices.
For more help on learning more about trading, I can recommend this site: Investopedia.com
I hope this helps, and good luck on your journey.
to da moon
Great trading info...looks like Eos will be trading even lower until January or so, before the hype starts building up
Yep. If you want to invest, my suggestion would be to wait until the ICO is over.
Always keeping watching and on the Go..
to always read and learn from you and your post
Nice information! I have learned a lot from Jerry. He has given good advice.
Thank you for sharing, I appreciated your posting.
it was fun talking about this on the phone!!!!
Makes me want to sell my stacks EOS and buy down the road 😂
LOL - Or you could play the window like many other do! I personally sold all of my EOS and will wait until the ICO phase has completed.
Good analysis!
EOS ICO structure and distribution is bad for ETH trading. If we werent in such a bullish market . . . . Expect them to cash out too.
The window is designed in such a way that the price of EOS cannot go up during the ICO. And why would it?
Jerry, what should the marketcap be at the end of the EOS ICO?
There is no possible way to know this.
I have some eos, not much. Do you suggest waiting just before the sale ends to buy into eos? or waiting till bottoms out like 30 cents to buy it?
I think it will go lower before it goes up!
Eos wasn't doing much for me anywas and looking at the chart it's continuing going down, same with steem, and bitshares...The charts look similar to the way down...do you have any opinions on the similarities?...these 3 coins were created by the same developer. In my opnion steem is the best one.
Jerry ...is covering the flagging that goes on in regard to speaking about bit connect on this platform..ever going to be a subject you cover? I straight thought this was supposed to be an open platform..but it seems to be going on by some big boys..and that is that? silenced by those that are powerful? I voted for you as a witness...is this something a witness can address? bless up Jerry to you and yours*UMA
I do not know enough about it to create an informative post and appreciate you mentioning the topic here!
uh huh I see.....come on Jerry...* you have spidey..sense...but perhaps it more..like umm I don't wanna rock the boat...??! but uh ya..ok...Jerry
The flagging is done when people post affiliate links. I got bit as well. Now I don't promote BitConnect because I believe it to be scammy. The "trading bot" is so opaque it's "and then a miracle occurs":
I did a post a while ago on my analysis of the platform, they'll keep their door open while BTC continues to rise is my guess: https://steemit.com/life/@libertyteeth/bitconnect-is-gaming-the-system-btc-will-keep-rising-and-they-transact-in-dollars
Let them hate, and keep making your money on BitConnect @eventhebookofuma. When it's the second most valuable token on Coin Market Cap... they'll be crying themselves to sleep at night.
The supply is too much, not a good token to hold for long term. Thanks for your explainations, i picked out a few points.
Thank you Jerry! Great analysis.
I had seen your video about this few weeks ago. Be safe Steemians!!
Topman you are.....
Awesome
I bought EOS at about $.90, its been a bring downhill ride so far, hopefully we'll see it skyrocket at the end of these 200+ days. Are you thinking of buying when (if) it does go down below .20?
Steem is all I am invested in for the foreseeable future!
I sold
I think this reasoning is a bit too simple. In the beginning ICO price was always above market price, most likely due to the hype.
The big dip you talked about from 1.29 to 0.90 happened due to the China ICO treath. Most ICO/China related coins are bearish since that time
For me you should look at the project itself, do you think it has potential at this price just buy it. There are no guarantees in investing. Every investment is priced at a level where its balanced to the information that is available...
If you are totally sure of this just go all in short...
If I would be sure of something I know I would be all in...
way to much supply of EOS to make it worth very much. I tend to like the lower end coins
It will replace Ethereum, so it will easily go to $30.00 a token, which will give it the same valuation as Ethereum has now by next summer.
Jerry, you may want to check a few more data points on comparing bitfinex price to the ICO distribution. I have used both multiple times to purchase EOS ( as a US resident). On many instances the purchase on bitfinex gets you lower prices.
Things to consider: The distribution happens once a day and you would have to be there at that exact moment to even try to gauge the average price of EOS on that round. Like you said, it is flooded with contributions up to the second the round closes. It is rare that that this is the exact moment that EOS was at its low on the day.
With minimal charting experience you can set limit orders near support and easily get a order fill on bitfinex at a lower price.
Many people look at the 1B token distribution and try to extrapolate current market cap to that final distributed token value. I think this is fine if you feel the overall market will stay at the current status (with no additional growth), and you feel that EOS will not gain any ground on its share of the overall market.
I think what we are seeing now in the markets should clearly be signs that this will not be true when the time comes.
EOS has strong support at 0.5$. I’m not saying that this cannot be broke, but there is definitely large interest at that value.
If bullish on EOS, like myself, I feel the best approach is to layer into a position to cost average. Nobody will look back and say “ crap I got my EOS at $2” when it is at $200. For me EOS is a long term play so don’t apply the same logic if trying to trade it short term. Thanks for sharing!
hello, @jerrybanfield
I am not buying any alt-coins until after 10/25.
Great info Dude. Very useful content on treding.
Thanks for sharing.
posting is very useful for steemit users
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@jerrybanfield isn't BITFINEX kicking all american clients to the curb?
It was my understanding that they announced they were done doing business with people with a USA IP address.
You can transfer in crypto and exchange trade on Bitfinex . I do it all the time. Ethereum to EOS
UHH HEY JERRY BANFIELD I JUST WANT TO KNOW WHY ARE PEOPLE SENDING STEEM TOKENS TO BITTREX FROM STEEMIT?
Thanks sir for your post .
Good luck
Very good post sir. I was waiting to vote first on your post.
Thank you Jerry, you are the reason why I'm here now in steemit, keep the good work
nice information and good post
Well no I do not have bitfinex, but I do not know which to buy, as there a approximately hundreds of new virtual currencies developed.
Great post, again,! Thank you for what you're doing. Upvoted @ 100% my friend.Keep up the good work. go ahead.we are...
you must update the image of witness ... these 27 for what I saw
Upvoted and also resteemed :]
I didn't know about this.
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STOPgood post:)
Don't have any EOS, but was maybe planning to buy some. Didn't know that this strange distribution system was happening. That's the first time I hear of such a daily distribution for an ICO/coin. Astounding. Thanks.
I agree and you said similar things that I said a few weeks ago.
The sell pressure is too great. It will have spikes when people think EOS has bottomed but those spikes are temporary. Given the EOS distribution is not even half over, I don't think its worth tying up funds right now.
Kryptonaut
Thanks @jerry
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Excellent advice @jerrybanfield. I was just about to buy in to EOS but i think I'll wait for it to go a bit further down. Do you have any predictions on what price it will be in a year's time?
I would suggest you consider laddering into a position and not attempting to catch the bottom as it will probably lead to chasing. Just my humble opinion.
@jerrybanfield I only focus on the main three and have avoided the ICO craze. Do you think the ICO's are in a bubble?
@jerrybandfield, thank you, very useful information. greetings from Indonesia. @bukharisulaiman.
As usual interesting point of view on the situation.
Valuable and meaningful message, facilitating the reaction to the existing market situation.
A large amount of information that allows you to establish a market strategy.
Regards!
Congratulations @jerrybanfield!
Your post was mentioned in the hit parade in the following category:
Thanks Jerry, kind-of funny indeed when you think about it, the more EOS there's on the market the lower the price? Or is that too simple reasoning? You might as well say the more the product gains shape the higher the price might be. I bet that's what Block.One thought!