RE: HERTZ FBA Created!

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HERTZ FBA Created!

in bitshares •  8 years ago  (edited)

Because there is a shortage of tokens. Nobody would create the tokens if that were true, meaning an illiquid market. An illiquid market will be plagued with price swings and margin calls, plus a huge loss of money to the issuers.. especially if it were trading at 10x the price feed, which I don't think could be sustained due to the price fluctuations

bitshares
8 years ago by

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      ·  8 years ago 

    Trading at 10x the price feed is an unbelievably good deal for the issuers, because it would mean they are on the hook for only 10% of the market value of the token. I agree that that far from the price feed is not very attractive to buyers, but it's still a token that's guaranteed to be worth more than an index that doubles annually. That's actually worth a good deal.

    I also agree that it's not a great use case for smartcoins, but I bet it wouldn't be totally illiquid.

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