Well, that was a hoot.
Last month a dedicated curator in the VYB tribe decided to dump its VYB holdings. 26 days ago the #VYB whale @onealpha.vyb dropped a transaction to unstake 818,524 VYB.
VYB has a bizarre cooldown structure that involves 25 transactions in 25 days. So, for the last 25 days, @onealpha.vyb dumped 32,740 VYB a day on the market.
This put a major downward pressure on VYB. The dumping event pushed the price of VYB to zero.
As I write this post. #hive-engine reports that VYB has a supply of 10,708,396 tokens that trade at $0.00003 for a marcap of $321. I suspect that the price will pop now that the dumping is through.
VYB triggers on the #proofofbrain keyword. As I understand the token was created in protest of whales who monopolized #POB through self-votes.
As I understand token does not pay on self-votes. I have not tested this idea.
The rewards for VYB come in staked form. This means that HE accounts that do not regularly unstake their coins end up building a modest nest of VYB.
The VYB Richlist shows that the token has one of the most equitable distributions of all the tribal tokens. There are only a few whales and a large number of VYB dolphins.
I happen to have over 100K VYB in my primary account. I guess that makes me a VYB orca. I acquired an additional 25K VYB last month for side projects.
It appears that the @balina account was the primary beneficiary of the VYB fire sale. The voting trail for @balina shows that it does nothing but upvote the daily @centtoken burn post. The new whale is burning all of its earnings! This is great for the tribe.
The term "burn" involves transferring tokens the @null account.
As I write, the @null account held 13,744 free VYB and 125,328 staked VYB.
I should note. The @buynburn account uses its HIVE and HBD rewards to buy and burn undervalued HIVE Engine tokens. After publishing this post. I will burn 6,295 VYB which should bring @null's VYB holdings to over 20K.
A Whale Capitulation
An event where a market maker dumps a huge load of stock is called a "capitulation." I asked Night Cafe to generate the image of a whale swimming through burning seas as a #meme to signify a whale capitulation.
Conclusion
The recent experience on VYB highlights one of the dangers that whales pose to the HIVE ecosystem.
A whale can obliterate a tribe when it dumps its tokens.
I think that VYB still has good fundamentals. It has one of the most equitable distribution of coins on the market. So, I think that VYB will survive.
I would say that it is a good time to buy VYB, but there just isn't a lot of free VYB on the market; so buying will be tricky.
Here is the Proof of Burn #POB. You burned 6,295 VYB with a reported valued of $0.62.
https://he.dtools.dev/tx/5a3cd1f3a7f8ce47cd099b683ef55160337abd6a
!WINE
This volume chart from TribalDex shows that there was 25 days of high volume as the whale dumped its VYB:
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