Because I have knowledge and common sense.
I have knowledge and common sense too.
And just because you disagree with me does not make me any less knowledgeable or any less common sense than you.
Because I know that no institutional buyer is buying VERI for speculation purposes. The VERI token simply doesn't meet the criteria most IB would have for an investment. Namely, volume and liquidity. If they buy VERI tokens it is to use the VERI services.
You did not answer to my question.
I mostly agree. Finally you have something right!
But I am not fighting on Reggie's side. I am on the side of truth and logic. Truth and logic has no agenda.
By this statement, you now understand why it is not necessary for Reggie to burn his inventory. He can keep his 98M tokens for the institutional deals which will have little or no effect (as you've just stated) on the 2M tokens already circulating.
You can't agree on something that you don't really understand.
My agenda is to make money. What is your agenda? To do charity? Fair enough.
Nope, you got it wrong. You are taking things out of context.
Having 98 mil reserve will depress the price no matter the network effect.
Positive network effect (which there is none) = price depressed.
Neutral network effect = price depressed.
Negative network effect = price worthless.
The network effect as I meant refers to the network being participated by everyone, regardless of the amount of token circulating.
The less participation (regardless of the amount of circulating token, be it 2 mil or 100 mil), the less network effect.
When institutions buy in bulk from Reggie, they are effectively a non-participant of the network.
Even if they were to publicize their deal to use VeADIR, it gives no effect to the network (except in the form of hype, which is unsustainable).
Please go study business or economics before you take me out of context.
No skin? I'm sure Reggie has a pile of VERI he'd like to see appreciate in value. I'm also fairly certain the company sells (or could sell) VERI that are redeemed for fiat or use VERI to pay their bills, including his salary, depending on where they are at with consuming their ICO money/ETH. He has plenty of skin in the game, and it sure looks to me like he's working pretty hard for a man you say has 'no skin' in the game.
You are very dishonest with hidden agenda.
I already said Reggie got paid his worth when he did his ICO.
Where do you think his money collected during the ICO gone to?
Gone to pay for the bills, salaries, expenses, of course.
Subsequently if he wants to continue earning more economic gain, he will need to do it with his consultancy services.
Having a large pile of VERI that he hopes to see gain in value does
NOT mean having any skin in the game.
Are you out of your mind?
If you pay for your VERI with your own fiat money or hard-earned savings, then you have skin in the game.
If you create your own VERI out of thin air through programming without the need to pay for it with your own fiat money or hard-earned savings, then you have
NO skin in the game.
Jeez, do I even need to tell that to you?
Of course he is hard at work.
Because he wants huge economic gain from his 98 mil reserve.
Even if his 98 mil is suddenly wipeout by accident, do you think he will end up a poor man? Absolutely not.
Reggie's 98 mil reserve stake is free of charge to him.
The reserve costs him no money to own.
Maybe you are truthful (despite not smart enough), but obviously you have no logic.
I own some VERI.
Do you think those VERI costs me money to own? You can bet the fuck they do.
Do you own some VERI?
Do they cost you money to own? Maybe they don't, which would explain why you don't understand my points.
Again I agree, this is probably not too significant other than media and notoriety that brings additional exposure and marketing for the token itself. They might be private deals as far as the details but I'm sure Reggie would require a press release to get the word out, and I think the press and advertising will bring more new token holders to the platform to use the VEADIR or rent/borrow tokens or buy research.
Those private deals mean
NOTHING.
They may mean big things to you, but unless they involve direct participation in the network, i.e. buying and selling with you and each others to get the tokens for exposure, their involvement is closed-door and off the network, thus no network effect.
Please go help yourself understand what it means to have network effect.
Here's a simplistic summary:
Buy from Reggie to be used and recycled back for resale = no network effect.
Buy from the token holders of currently circulating 2 mil tokens to be used and recycled back for resale = yes to network effect.
You need to understand there is not many factor to network effect here.
Gaining exposure does not affect the network because the exposure has nothing to do with what you or anyone buys or sells, or what yours or anyone else's portfolio is like; it is only exposure from Veritaseum's consultancy services.
The exposure does not even include betting on how many token holders are buying a particular crypto and how many of the rest are selling the same, and try to bet on which side will win.
That leaves buying and selling the tokens in circulation as the only factor to the network effect.
No network effect means your token price will not grow, even if you have all the institutional buyers joining.
Please go educate yourself more.
The only exchanges of note are ED and Mercatox. If Reggie burns his inventory tonight and makes a deal tomorrow, that's the only option.
Business decisions to use the VEADIR or license VERI services won't be made contingent on the ability to acquire tokens on those podunk exchanges. Why? Because it's impossible for a business to know how much it would cost them to buy 10,000 VERI tokens. Based on current price that should be $1.1M. A business can make a decision to use VERI if they know that they can execute their plans for $1.1M in this example and get an expected return. What they aren't going to do is go about buying 10k tokens on the open market, knowing that they will push the price up and with the uncertainty that buying that qty of tokens in a short period of time might actually cost $5M while driving the price of the token up with the huge purchase. Maybe it would cost $10M to get that many tokens. With the uncertain costs and risks of buying large quantities on podunk exchanges, no business is ever going to be able to commit to a deal to use VERI, it's just too risky. The only way is to make a direct deal with Reggie at a known price.
You make getting listed in more exchanges sound like a big deal.
Let's do any illustration to you, a stupid fool, hopefully you will understand.
If current price is USD120 and the cost for 1 ETH worth of exposure is 0.1 VERI...
An institution wants to buy USD 10 mil worth of VERI for exposure.
If the selling supply is just USD 10,000 at USD 120 per token, then the institution will have a hard time accumulating enough for USD 10 mil worth of VERI.
That USD 10 mil worth of VERI would get 833,333 ETH worth of exposure (10 mil / 120 / 0.1 = 833,333).
So it buys all the way up, from USD 120 to USD 12,000.
Now everyone is selling at USD 12,000.
The institution managed to buy USD 10 mil worth of VERI, say
CONSERVATIVELY 833.333 VERI.
The VeADIR adjusts the cost of exposure real-time, thus the latest cost is 0.001 VERI per 1 ETH worth of exposure (assuming ETH price remain the same).
Now the institution spends that 833.333 VERI for the exact same 833,333 ETH worth of exposure.
Is there any loss to the institution for bidding up the price? Absolutely zero loss.
But here's another thing...
That institution didn't just buy all its 833.333 at USD 12,000.
It also did buy many more while the price was at USD 120 all the way up to USD 11,999.
So the institution actually has far more than 833.333 VERI, which means it can now actually get far more exposure than just the 833,333 ETH worth.
Is there any gain to the institution for spending its USD 10 mil to bid up the price for exposure? Yes!
And if another institution wants to buy more VERI, the first institution that got more than 833.333 VERI due to averaging up can sell any excess to the second institution for trading profits.
If it is risky to you, it is because you think you are smarter than I.
I disagree because the alternative scenarios you propose (institutional buyers buying large quantities on Etherdelta) are fantasy, for the reasons I've already mentioned. Reggie needs inventory to sell to make the institutional deals. Now maybe he could make do with 10M tokens or 20M instead of 98M, but it shouldn't matter since - as we've discussed - those tokens shouldn't ever touch the exchanges.
Should or shouldn't, that is not your call.
If those bulk purchase touches the exchanges = price will depress far more.
There is no assurance that they won't.
Even so, such bulk purchase has
ZERO network effect as falsely touted by Reggie, because they are over-the-counter, or off-market.
Once again, you don't understand what is network effect.
So please go do yourself some research.
And I have already "illustrated" for you how buying large quantities in ED is not fantasy.
It is not about large quantities, as in how many units of tokens.
Rather it is about the price.
If the price is USD12,000 per token and the sell supply at ED is 50, that still translates to USD 600,000.
And if the cost of exposure is 5%, do you know what that USD 600,000 means?
It means the exposure would be USD 12 mil.
A paltry sum to institutions.
But at that price level, many token holders would clamor to sell everything.
So you won't be seeing 50 VERI on sale.
Maybe 5,000 VERI would be on sale.
That translates to USD 1.2 bil worth of ETH exposure.
And without that 98 mil reserve, the sky is not the limit.
And if you still don't understand me, then I really feel sorry for you.
I hope many others that read my comments will understand and get smarter.
And hey, let's not forget, as tokens get used up for exposure, they get recycled back to Veritaseum for resale.
So at USD 12,000 per token, Veritaseum would earn that much per token resold back to the market.
Which is why I also said it before that my suggestion to burn the 98 mil reserve
WILL NOT harm Reggie's bottom line.
Which is why I also said it before that there is no such risk of having no redemption.
Which is why I also said it before that the main problem is not about burning the 98 mil tokens in reserve, but about the adoption.
The 98 mil reserve serves as nothing but depressor, unnecessarily, because of Reggie's greed.
But I also said it many times in the past that burning the 98 mil reserve will not hurt his bottom line.
So his greed is not impaired by listening to my suggestion.
Update:
Reggie the dishonest says burning the token is manipulating the price.
So if Mercedes/Ferrari/Lambo does a super car and limit the production of such cars to limited edition of just 100 units, pricing each car beyond USD 1 million, can we say Mercedes/Ferrari/Lambo is manipulating its cars?
Update #2:
Another thing that you still need to understand, which you continue to fail to...
Is that as tokens are divisible, their supply is not a problem.
If VERI is priced at USD 1 per token, everyone can afford it and the get traded in quantities of 1, i.e. 1 VERI, 2 VERI, etc, no fractions.
This effectively means 2 mil circulating supply is exactly that... 2 mil.
But if the price adjusts to USD 1,000,000 per token (example), nobody can afford it now in quantities of 1.
So now it gets traded in fractional quantities of, say, 0.000001, i.e. 0.000001 VERI, 0.000002 VERI, etc, in fractions.
This effectively means 2 mil circulating supply is equivalent to 2 tril (yes, trillion) circulating supply at USD 1 per token.
This is made possible because of the high divisibility of erc20 tokens.
Which is why I said it before the 2 mil circulating supply is not a problem because it is highly divisible.
Which is also why I said it before that 2 mil circulating supply cannot meet demand excuse is simply bullshit.
Update #3:
It is
SELF-LIMITING that cost of exposure using the VeADIR needs to be set manually by Reggie.
Manual setup in this digital age = primitive mindset.
By right, the cost should be made dynamic in accordance to the latest market price, continuously.
This is to ensure institutions buying VERI for exposure at any price on the way up will not have speculative risk
AND will not have increasing cost of exposure due to increasing token price.
Update #4:
Reggie's dream for his 98 mil reserve to be sold out to earn some several billions of USD will materialize extremely slowly, if ever at all.
He should pray and hope that his dream will materialize before the sentiment dies out, or before another competitor emerges.
Otherwise, he can kiss his dream goodbye.
Institutions are not stupid.
The market forces are not stupid.
The current price is depressed because the market forces somehow instinctively already factored in (or still in the process?) the 98 mil reserve as part of circulating supply.
If Reggie is smart, humble, and flexible enough and buys up as many tokens as he possibly can with his own fiat money and/or hard-earned savings before proceeding to burn the rest of the reserve (he could be buying from himself a tiny portion from the 98 mil reserve), then his dream to earn many hundreds of millions (depending on his % of stake in the overall) to several billions (depending on his consultancy services that generates mass adoption) will materialize very fast.
