RE: DHF Drama And Why You Are Wrong
You are viewing a single comment's thread:
I think you may have forgotten that the total market cap of Hive is $150M.
You need to come up with an estimate for how much you think can be extracted.
For example I could make an argument that only like 10% of the market cap can actually be extracted into USD because our orderbooks operate on razor thin liquidity. Of course it's not that simple as the diehards scramble to acquire cheap Hive in the 5-10 cent rock bottom region, but we aren't even close to that so 10% capture ratio is reasonable right now. The opposite is also true: put $1M into Hive and the market cap will go up $10M-$100M, guaranteed.
While the DHF might look like small potatoes the actual multiplier can be anywhere from x10-x100 suppression rate. Meaning $3M spent in the DHF in a year could have potentially pumped Hive price x2 under favorable conditions.
The volume is just market making bots buying and selling to each other. When actual buyers come in and take a market-making bot's Hive away it will automatically scramble to get it back and push up the price. These' bots operate under the assumption that if they sell their tokens at X price they'll be able to get them back easily from another bot. When liquidity disappears they notice quite fast.
Good point, although we also don't know how much value these proposals are actually bringing back to Hive (I am assuming/hoping they are a net positive). Maybe we can add to the proposals that the payouts have to be sold into the mega pumps 😁