MAXUV News - Token Management - Crypto Hedge Funds & ETH-BTC Synthetic Token - 22 May 2020
I am restarting our news posts. This is for both MAPR and MAXUV and I shall try to publish every one or two days on alternating tokens. The weekly reports will obviously continue and there will be no extra news on those days.
Also as before, I shall add some general crypto news links to articles that look at research and developments within the industry. I care not a jot for lines on graphs as I can do that myself - and traditional technical analysis doesn't work very well on cryptos anyway!
Interesting, but this appears to be experimental as the smart contract expires on 1 August, 2020.
With a new Hardfork on Steem, there has been some activity in the token market. This may therefore be a good time to review how our market pricing works.
Every Monday, we send token distribution to delegators and reset our Buy and Sell prices. The actual number of tokens that we offer to buy back is set to about the profit generated for that week. This allows both delegators and other token-holders the opportunity to liquidate some tokens for STEEM.
Historically, we have seen very few sales and most MAPR investors have held their tokens to accumulate value. Every new week, the previous buybacks are kept in place so that a ladder of prices is available should people wish to sell. After 30 days, Steem-Engine automatically cancels any open orders, so such price ladders remain about 4 weeks deep. For the first time ever, we are seeing sales drop through all these price points!
In response to this, I would increase the value of our weekly power-down so that more funds are available should more investors wish to sell. This does not happen by magic and, as everyone knows, the power-down schedule can take time to complete. However, powering down decreases the SP available for voting and hence decreases income; I actually did increase the MAPR power-down rate some weeks ago but found no sellers - so I put it back to its standard rate. Now that it appears to be genuinely needed, I have increased it again so that more funds will be available this coming Monday.
However, if you need to sell urgently, then that's what the market is for. If you need to sell quickly, but not immediately, just place a reasonable sale price and someone may come along and buy your tokens. This is all fairly obvious trading activity, but for those who are not accustomed to trading markets I hope this short notice will help.
This is a similar situation to MAPR, but the mechanism is slightly different, so worth highlighting this. Our standard MAXUV price is 1 STEEM and we also offer a buy-back at 0.90 STEEM; again, this is really a service to help members sell their reward tokens. Again, similarly to MAPR, the actual number of tokens being offered each week corresponds to the profits for that week. Once such token buy-backs have exhausted, then members must just use the market as intended.
Very recently, I am seeing many offers for sale below that 0.90 STEEM value. That's fine, that's what the market is for. But it does show to us a certain selling pressure and we have responded by increasing our standard weekly power-downs. This takes time, so you may need some patience to wait for your sell order to be triggered. If you really need to sell quickly then there is always the decision to be made between price and timing.
The whole ethos of MAXUV is to reward both bloggers and investors; the mechanisms needed to make this as profitable as possible require a majority of the fund to be active as SP. It is therefore impossible to suddenly make money appear from nowhere. Rest assured the fund is actively managed and we respond to market changes, but this is like turning a tanker, not a speedboat.
Any questions, please ask in the comments below or in our public chatroom.