The money line is this:
"We've found that Circulating Supply is a much better metric for determining the market capitalization. Coins that are locked, reserved, or not able to be sold on the public market are coins that can't affect the price and thus should not be allowed to affect the market capitalization as well. The method of using the Circulating Supply is analogous to the method of using public float for determining the market capitalization of companies in traditional investing."
Lykke is making up its own rules about market capitalisation and trying to apply them to the market. That's because Lykke isn't operating under the free market and so its valuation is bogus.
A true valuation and free market is where buyers meet sellers. Buyers set a price, and sellers set their price, and where the meeting happens between them is what sets the actual price of the token. This isn't happening with Lykke at all. People can't even set limit orders!
You can see very clearly on reddit and even on here that many people are saying the valuation is bogus - you should take that on board. Olsen has taken that on board and what's why he's moving the 90% pre-investor coins into the trading wallet.
Lykke attempting to dictate its valuation to the market has had the market pushing back. Therefore Olsen is moving towards greater transparency to try and solve the valuation issues.
Last point is..Olsen made an AGREEMENT with coinmarketcap that this is how the valuation would be done for Lykke. There is a meeting of the minds there so Olsen is complicit in this. If Olsen thought the valuation was completely wrong, he doesn't have to agree with coinmarketcap at all. He has agreed, but now he's attempting to change the valuation by moving the pre-investor coins into the trading wallet lol
Anyone who has been in crypto long enough knows this is called flooding the market. Its an attempt to game the market capitalisation by increasing the circulating supply of coins.
Its why XRP and ripple had to make an announcement that their internal XRP funds would be locked away, giving investors assurance.
1) We are still talking about a website that is not a Lykke-website. I personally don't even get why it has so much meaning for you.
2) That site makes "agreements" with all projects. Most likely they simply ask what might be best. And in no way it can be precise for all projects and all times.
3) It's not possible yet to set limit orders on Lykke, because Lykke is a project that is not finished yet but under development, like other projects in this space. No project is totally ready, not even the father of all: Bitcoin.
4) But Lykke also doesn't make it's own rules, it wouldn't even be possible to do that. Potential Investors make decisions to buy at a certain price or to stay away. Those who already are invested make decisions if to sell or to hold. If Lykke wouldn't care about that but set the price too high nobody would buy anymore. If Lykke would set the price too low it would be bought out and they have zero interest to sell ownership at discount.
5) Of course one can say that the valuation is too high. But that question is not that much about the status quo but about future potential. Those who believe that Lykke has the chance to become a billion-company, and I believe that, won't say that it's expensive now. Another part of the story is the context: Please show me one project that is at a valuation that couldn't be seen as overvalued at this point of time.
- Ripple is at $10 billion, only what is on the market. And XRP is not like LKK, not a share of the company. At the same time the company holds billions of it, in Dollar. It's just a bridge-currency and nobody seems to know why it needs to exist. The decision to lock up supply was made 1 month ago and years after Ripple was started in 2014.
Ripple Pledges to Lock Up $14 Billion in XRP Cryptocurrency - May 16, 2017http://www.coindesk.com/ripple-pledges-lock-14-billion-xrp-cryptocurrency/- Bitshares is at $796,550,979
- Monero ist at > $600 million
- Augur is at $319,358,600 and is a smart contract
- Waves is at $502,451,000 (a decentralized exchange running on an own blockchain - that has pro's but also some con's)
...to give only a few examples. If you believe that all those projects are valued in any way objective but Lykke is not - maybe think about it.
And to say this:
"Anyone who has been in crypto long enough knows this is called flooding the market. Its an attempt to game the market capitalisation by increasing the circulating supply of coins." ...is interesting in a lot of ways:
1. How long are you in Crypto? Your account is pretty fresh (April 14, 2017). I'm long enough in this to know these kind of games. Of course you are not new. So, please let us know more about your intentions to use a newbie-account and to use a megaphone here and on reddit. There is nothing wrong to express concerns and critique, to ask questions and so on. But to attack how you do it, to confuse things intentionally, to misquote and to act so dishonest - that tells a story.
2. Moving supply that was distributed before the App even existed is not "flooding the market". If they would want that they could have done that in the past. If they would have intention to act dishonest they wouldn't speak about it openly and be that transparent as they are.
See, that is what makes me personally really angry. You try to use Richard Olsen's honesty against him and the team. They've always shown transparency, replied on all questions, they are working all the time as if they don't need any sleep. They give their best to be in touch with Investors and Users - and you are very engaged in your attempt to turn that all against them.
There is the simple fact that you've sold, right? ;-)
