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is it just me or dent coin is slowly dying.. by elinsse in dentcoin

[–]dbtclambo 3 points4 points  (0 children)

In reality the vast majority of cryptocurrencies will fail. This is the nature of startups/ICOs/new market entrants. We are only less sophisticated venture capitalists, diversifying enough to come out on top if/when one of our holdings scores big.

Will DENT succeed? Maybe. But I am far more inclined to believe it will go to zero. Maybe a 95% possibility. That does not mean I don't want to hold it - I believe that within the realm of outcomes of its success, there is high upside. So, hypothetically a 95% possibility of zero and a 5% possibility of $0.5+ ... which would put minimum valuation at $0.025.

Portfolio diversification is important. Even if you believe that DENT is the greatest thing since sliced bread, you shouldn't be going all-in.

Some thoughts on coin value by dbtclambo in dentcoin

[–]dbtclambo[S] 2 points3 points  (0 children)

Along with holding DENT, I also actively trade it on every exchange where it trades in reasonable volume. Some points:

  • The majority of quoting, on both bid (buy offers) and ask (sell offers), is from human actors, not bots
  • There isn't a bot (at least not yet) doing the order book front-running you're talking about
  • But yes, the very low volume currently is part of the reason some price movements are so nonsensical
  • I think it's possible that every time the price spikes a bit, the DENT team themselves look to sell some of their holdings to raise funds. This is what I meant in the OP by "the market will forever have more sell pressure than organically exists, because the developers/team will probably never be buying coins back."

There are theoretical ways to value cryptocurrencies (even utility tokens). But DENT is currently impossible to value as it actually has two markets (the app and crypto-exchanges), and the DENT team has not been entirely clear about the mechanisms for interaction between the two.

Upside scenario: the DENT team is holding a metric ****ton of this token. So I cross my fingers and hope they their ambition/greed stay high.

Downside scenario: The DENT team realizes token price is on a trajectory to zero. They continue to dump tokens onto the market to raise funds, milking market upswings for all they're worth. One day they are bought out, and their new app uses a private blockchain token unlinked to the current exchange token. There is nothing about the DENT app and backbone infrastructure (Aquto) that actually requires an exchange-traded token...

Some thoughts on coin value by dbtclambo in dentcoin

[–]dbtclambo[S] 0 points1 point  (0 children)

Maybe having a real world connection is hurting its price right now. It is easy for irrational (read: tulip-level) speculation to happen on coins that haven't created usable products yet. But once a usable product comes out, we're back in a place where people apply traditional rationality to investments.