Scoresby on Nostr: Yeah, that's something I found a little strange. Think about it this way: if hodlers ...
Yeah, that's something I found a little strange.
Think about it this way: if hodlers try to dump (sell significantly below what most people are willing to pay), what is to stop a trader from buying those cheap coins and reselling them at whatever rate the market will bear?
As long as there is demand for the dumped coins, arbitragers are incentivized to buy and resell to the level of demand as fast as they can (before the dumper stops giving them free money).
Any coins sold at lowball prices simply become new coins being sold at the highest level people will pay (the market price).
Explain how a hodler or an investor or even an economic node selling a fork coin can achieve lower prices than people will pay?
Think about it this way: if hodlers try to dump (sell significantly below what most people are willing to pay), what is to stop a trader from buying those cheap coins and reselling them at whatever rate the market will bear?
As long as there is demand for the dumped coins, arbitragers are incentivized to buy and resell to the level of demand as fast as they can (before the dumper stops giving them free money).
Any coins sold at lowball prices simply become new coins being sold at the highest level people will pay (the market price).
Explain how a hodler or an investor or even an economic node selling a fork coin can achieve lower prices than people will pay?