Hey folks,
I just wanted to further explain one of the pros of DeltaCredits- this is the only currency with a relative long-term immunity to any prolonged downtrend caused by pumps and dumps.
You see, during a P&D, the vast majority of investors enter the market on the way to the peak. Only the few that are responsible for the P&D can dictate the exit point. Once the dump occurs, there are many players left holding the bag. I have included an image of a chart of an actual cryptocurrency affected by P&Ds:
Example:
What does this chart signify? We can all notice the initial peak. We can also notice the VERY high volume traded on that period. The majority of the currency has changed hands during that short span of time, on an inflated price. As the peak falls, and the first dip occurs, buyers are left holding a bag for which they overpaid for. We can also notice the 2nd peak, half the size of the first, and on noticeably less volume. During that period, earlier investors which sold during the initial peak are re-entering the market, in expectations of a rebound. That 2nd peak is what many investors would call a "dead cat bounce". As many struggle to sell for a profit after buying on that initial dip, it further traps more investors. From then on, we can notice a steady and continuous decline in value, until finally, we reach a point of stagnation where next to none of the currency is traded.
So what does this signify? The reason why this occurs is because after the P&D, there are mainly sellers, and next to no buyers. What ensues is a long-term downtrend because the market lacks any demand. A build up in sell orders keeps the price from rebounding, and the occasional rare new limit buy order at low prices will get filled as investors will look to cut their losses short and exit this inevitable downtrend market. Remember, in this type of market, there is next to no demand. This of course changes depending on the developmental status of the currency, but even on good news, older investors will look to exit quickly, leaving any chance of beginning a new uptrend.
What DeltaCredits has is the SRF- a fund that generates daily revenue with the sole purpose of buying from the sell order book on a daily basis, and in turn destroying all of the coins that are purchased. If, in the case that DeltaCredits experiences a similar P&D, the SRF will prevent any prolonged downtrend, because over time, the fund will buy off the sell order book and prevent an excess of sell orders to build up. Not to mention that the coins will be for bargain rates, considering if the value is forced below ICO price. At half the ICO price, the SRF should be buying back and destroying coins at the rate of 1%-2.4% of the ENTIRE coin supply, per DAY. An eventual uptrend will be forced due to this missing supply and decreasing volume in sell orders.
Best,
Adam
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