I pointed out this concern above. The problem is a lack of data about the value of the altcoin in question, due to low liquidity. I contend that it is impossible for a formula to determine a reasonable value. It says in the white paper the input to the formula is historical trade information, but that is not a correct input to use, in fact there is no input that makes sense.
did you maybe run a simulation that determines its not a correct input? they might be doing things differently than how trade and liquidity works now but that doesn't mean its not a valid way of doing it in their system.
if you do have some way of proving its not a valid way i'd like to have a look
![Smiley](https://bitcointalk.org/Smileys/default/smiley.gif)
been following them for a while now, seems solid so far.