Hey Empo, hope you do good.
The liquidity problem was something I mention in some posts in the past.
Issue more tokens all 6 months to hammer the price down to 1$ again would make it easier to add liquidity.
Like a seed is worth for example 4$ and every holder gets 3 extra tokens.
So you don't have to do the math :) Like 1 Seed is on issue date 1$.
Stocks work with splitting the same. In theory, it would be the same 0,25 Seed = 1$ or 1 Seed 1$. But it would be in some way like a diffident payment.
My 2 cents on that :)
GM! :)
Edit: What I forget to say, with more tokens released, it's also a way to add additional some more to new people that want to invest. So fresh funds come into the seed treasury :)
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It wont change things if people are not willing to sell. You are just playing a numerical game.
If someone has 1000 SEED and isnt willing to selling, making it 3000 SEED at 1/3 the price is still not going to get the person to sell.
Liquidity issues can stem from too small a float. However, with 100K, there is enough there. The challenge is that nobody is selling. If holders of 25% of the stake (25K) were selling, it would not be an issue.
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I agree, but it is a psychosocial thing + it allows issuing new tokens for 1$ to new investors. It's the typical " its expensive thinking" and not thinking in shares.
Look shiba or doge. I think nobody of those investors thinks about i own x% of the token supply.
They like to see "I hold 1 000 000 Shiba".
But back to the point. If nobody sells it changes nothing but it would allow issuing some more tokens and get the fund bigger.
The thing about seed is 5$. Supply would go to 500k. Now, empo issue another 500k token to double the investment power.
Its also another thing, if you want to buy more, it's currently impossible :)
If empo issue now tokens, it involves to much math :P.
Expanding the fund is IMO the best thing that can happen, profit hive also because of the HBD part :)
Tbh, I don't want the mentality of shiba holders there. They destroy the price in both directions. They're the first to complain when things go bad and the first to congratulate themselves when things go fine.
Issuing new tokens (amplifying the supply ratio) will come at a high premium for new investors (if that ever happens).
I prefer to keep things relatively easy. The fund will grow naturally when it's underlying assets held also grow in value.
Issuing new tokens could be a possibility, but not for 1$. Those tokens need to hold the real value, which is almost at 2,5$ as per the chart above. You talk about 'share', well early investors took a risk which is higher when investing in the fund today. Maybe that deserves a premium on new token value, like 3$. That said, I don't see any reason for SEED to issue new tokens. When SEED needs more liquidity, then the fund could go to the market and get some crypt loans. This morning someone in a YT vid told me these loans are dirt cheap at the moment. The cost of the loan is a cost to the fund which decreases profits, but the fund will have the liquidity needed to invest in new token launches. At some point, peeps will like to trade their SEED, but this is not the time.
Liquidity is covered for new token launches. No problem. It's just that I try to accumulate HBD in savings and don't touch it later.
Not thinking about loans atm but could be something that I explore soon in polygon with Aave.
read and try again.
If token is 5$ everyone gets 4 tokens more. Then the price is 1$. That allows issue more for 1$.
Sure, I understand what you say. There is no difference to your example of 5$ versus issuing new tokens right now for the price of SEED based on current fund value. Which is kinda like 2,5$ right now (a little less maybe).
I still don't see why more tokens need to enter the market. As I don't see why it is a problem that it's not easy to trade the token. At some point, more SEED holders will want to sell. But that is not the case now. Fine with me, and should be fine for SEED as well.
It's perfectly fine! It was a 'positive ranting' in the sense of how difficult getting that initial liquidity has been.
The SEED holders simply believe in the fund manager, hence no one wants to sell :)
What I think is new to crypto compared to the fiat world, is investment funds becoming tradable on the free market. I still wonder about that. What is the benefit of a tradable investment fund? The value of the investment fund is the value of all investments. I suppose, by making an investment fund publicly tradable, the only positive effect of that is the value of the investment fund manager is included in the price. All the other elements such as market sentiment, I see as a negative effect. What is your take on this?
One thing is for sure. If new tokens ever get minted (I would have to create a new token and all that stuff), % of existing holders won't be diluted. That's for sure.