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RE: Introducing Buy 'n Burn
There isn't really any benefit to having more burn posts
I agree with this. Automated burn posts appear to have little impact on the HE coins.
The alt coins are falling because tribal coins produce more interest than the market can absorb.
In the long run, the only way to stop this problem is to attract more users.
Buying Coins Seems To Make an Impact
Oddly, the act of buying coins appears to make a short term difference.
Since the trading volume of many the coins is less than a dollar a day, the simple act of buying a HIVE worth of coin can make a huge impact with some of the tribes.
The Account Focuses on Marginal Coins
I want to focus on marginal coins like CCC and FOODIE. These tribes tend to attract artist types who are selling their coins as they earn them.
This effort will get rewards to the smaller accounts.
A Market Maker that Occasionally Burns Coins
The real goal of this project is to create a market maker that buys and sells coins. The program will occasionally burn the acquired coins.
My hope is that adding a program that is actively buying coins will help increase the liquidity of the coins.
This might help attract users into using HIVE Engine.
Burning HBD and HIVE
The final point of this project is to argue against burning HBD and HIVE.
To attract users, both HIVE and HBD need to have a high market cap.
Conclusion
I have actually followed many of the different burn efforts. Most of the programs do not make a significant impact on the coins.
I am creating a new program because I think it is possible to structure an account that makes an impact on the marginal coins.
The thing is the market isn’t absorbing them most everyone is just selling them.
Because no one else is. You can double most Hive Engine token market caps with as little as 2 Hive. You are correct about short term, but I think it’s likely shorter than you think as you can quickly double the market cap with a couple of Hive and the first dump for for the same or less will bring it back down again. Without utility and userbase there is really chance of it changing.
Does it though, like does it really matter in the end? So the price changes but without volume or liquidity it meaningless.
Not a bad goal but it is like peeing in the ocean in Japan and saying it tastes funny in the US.
We need marketing that isn’t just throwing cash down the drain with nothing to show for it.
I firmly believe at this point the only thing that matters is more users. It will solve almost all of our problems. With a typical cost to acquire customers at or exceeding $200+ it becomes is very difficult to sustain.
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