Hi All,
I have been reading this Powtoken thread with interest and I thought now is the ideal time for my first post.
Before I begin i should give you full disclosure:
- I was lucky enough to be in the first 100 in the Powtoken airdrop, therefore I have in excess of 100 million Powlite. I had exactly the same issues as everyone else has stated, having to refresh the site etc. But i got lucky with one connection that went through. Maybe I am located close to the servers, who knows?
- I am not part of the Pow team, but i am connected to one of the team through Linkedin, which is where i got to hear about the airdrop. I have met that person a couple of times 5+ years ago when we worked for different companies.
- I am a complete newbie to cryptocurrency, (and to this forum) so feel free put me in my place and tell me where you think I am wrong! However I do run a global trading environment that processes billions of transactions a day so I understand market dynamics.
I am very intrigued by the Powtoken concept, but it is important to understand that currently there is 0 (Zero, Zip, Zilch, Nada) value to Powtoken. The operators/Devs of Powtoken are being very disingenuous when they claim on the homepage that any claim is worth anything. Let me explain why:
- What you are claiming or have already claimed is Pow Lite. What is being traded on EtherDelta is the POW ERC20 token. Today there is no bridge between the two although the devs claim a bridge will be made available in December.
- There is no transparency from the Devs around what that bridge entails. We are assuming a 1 to 1 Pow lite to POW ERC20, is that the case? I am sure there will be hoops to jump through to access the bridge, which in all honesty will make sense otherwise as everyone dumps in December any perceived value will disappear back to $0.00.
- The only people who can sell/trade the POW ERC20 token are the devs, who have 19.3 billion + a handful of retweeters who got 10k each
- The price on EtherDelta can be manipulated significantly because of the lack of market depth (No Demand). As i write this there is the grand sum of $803 in buy orders between the current price and a 90% drop in value. Equally anyone of us could manipulate the perceived value by putting in a $1.00 buy order to artificially raise the "currently worth" status on the Powtoken homepage. This does appear to have happened quite a few times.
Therefore, just to re-iterate, Pow Lite and Pow ERC20 are worthless today. It doesn't matter how many you have thousands, millions or billions when you multiply them by 0, you get $0.00.
However...........I do really like this concept, and I do think there is some potential value here but as the saying goes "there is no such thing as a free lunch".
In order for this to succeed we need to create an economy around the Powtoken, we need to get people transferring it and 'spending' it.
I know the devs are about to open up the functionality to transfer Pow to your friends, everyone needs to do this. Today there are around 28k claims, if those early claimants each got 50 of their facebook friends to claim, perhaps by sending them some Pow to get started then the Pow Community would be 1.4 million. If each one of those people sent Pow to further 10 people it would be at 14 million....blah blah blah, you get it.
This then becomes interesting, and yes there would be some value, unfortunately not the level that the Devs claim, but still interesting.
The issue with all of this though boils down to two things.
- Dev Transparency...We need to understand more about the motivations of the devs and what justifies the massive share of tokens they share? We need some commitment that if we, as Pow Lite holders, help drive adoption of Pow through the distribution of Pow lite, that the Devs are not just going to start selling their enormous pot of value (8.5% of total available supply but currently 19% of total claimed Pow lite) before anyone has been able to bridge their tokens.
- Bridge conditions - When the bridge is available to transfer from Pow Lite to Pow ERC20 what do we need to do or have done?
If we get these things sorted then I am happy to spend time promoting this and help driving adoption, until then everyone should treat this as an interesting, risk free opportunity but please please remember it has NO VALUE......today.
