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RE: LeoStrategy Has Acquired 10% of the LEO Supply
Personally, I don't think it's a good idea to seed the LPs at 1$. This is going to cause a lot of dumping SURGE, which basically means just yield for the fastest sellers, at the expense of the fund and therefore LSTR and LEO holders.
I think it would be better to gradually deploy liquidity at prices closer to the current price, watching sell levels on Tribaldex closely. That way, you don't just evaporate a few k dollars in liquidity that will be extracted in the first few minutes after launch.
I know you want the price to go to $1, but only the market can get it there, not the initial liquidity pool setting.
0.00062421 BEE
That’s not how SURGE is designed
SURGE has a minimum value of $1. If anyone sells below $1, it’s free money for anyone who buys it
Also, as the price goes below $1, the effective APR increases
SURGE has no capped upside. I expect it will traded north of $1. Who cares if a few people dump it out of ignorance. That means profit for whoever feels like profiting off them
Efficient markets are efficient. I suspect we’ll see SURGE vastly outperform people’s expectations
I didn't mean to disagree with the $1 proposition, just saying that deploying LPs like that will lead to an immediate arbitrage and the price will fall significantly below $1 anyway, which means a waste of the funds resources, that's all.
If people dump their surge into the LP... I'm picking up the cheap SURGE.
Fair enough, just means some people will extract a few thousand dollars on the way. Just saying that if the perceived fair value of SURGE was indeed $1, SURGE would've sold out immediately. The reason it hasn't is there's enough doubt about the ability to flip a large chunk of SURGE at $1, so anyone buying just buys a smaller chunk, not $100k worth. Otherwise this would be the investment of a lifetime, spend 100k now to get 135k out immediately.
Don't get me wrong, I'm not criticizing LSTR or SURGE, just pointing out what the market is likely going to do with the situation at hand, independently of the intentions or the long term outlook.
They have advertised a floor price of $1. To open the pool at anything less would be disingenuous in my mind.
Fair