How to disinvest from CTPSB ?
You might be wondering why I write about such a topic. For all the projects that I run, I want to provide a door for people who need to take their money out. You never know what life has in store for you and one day, we might be in a situation where we need to disinvest. I wouldn't want to invest in project that doesn't offer the option to actually sell your assets. I had a demand from a long time CTPSB owner that asked me how he could take his money out without crashing the project. I appreciate the fact that he actually wrote to me and I would like to show here the best way to do it. A way that is healthy for him and for the project.
What we need to keep in mind is that each CTPSB token is backed by Hive Power on the @ctpsb account. The market maker has a certain amount of liquid hive to buy tokens back. The market maker tries to put regularly buy orders on the market around the theoretical token value (hive power on ctpsb / CTPSB tokens in circulation).
The easiest way is to simply sell your tokens on a regular basis by putting sell orders between the buy and the sell price. Since the token value of CTPSB is going up over time, little by little the organic buys that are in place will eat these sell orders up. According to the size of the disinvestment, this might take a certain time because it's possible that the market maker will actually need to sell CTPSB tokens back to the project. In this instance, the project will power down the according hive power and swap the tokens for Hive. The tokens are then burnt and the hive goes to the market maker that can buy tokens from the market with this liquidity.
What should be avoided is to simply sell the tokens over dswap for example. Since the orders in the buy book are limited, it's possible that you might get a very bad price if you do that. By putting sell orders a little under the existing sell orders, you don't have this risk.
This solution is pretty straight forward because you only need to create the orders and wait for them to get executed. Like that the market maker has the time to do what is necessary according to the liquidity at hand.
The numbers of this week
| Assets | Amount | Increase over last week |
|---|---|---|
| Hive Power | 33514 | +99 |
| Tokens in circulation | 9436.4 | -2 |
| Burnt tokens | 2062 | +2 |
| Token value | 3.552 | +0.012 |
| APR | 16.25% | +2.2% |
Learn more about the CTP Swarm Booster:
A project run by @liotes
Thanks for the explanation, to take into account when you want to sell a token.
!WINE
!BBH
We never know if we once need to sell our tokens. At least here is a way that is positive for all parties included.
I agree that people should sell off slowly if they have a large amount in a project. After all, if you want a good price, you have to wait. I don't plan on selling my CTPSB though.
I'm happy to hear that :-)
Interesting !!
thanks for the insight :-)
!BBH