Does such a coin exist ? (anti- pump and dump)

[HellCoinLTE]

Hi, this is my first post in a forum. The reason why I have registered is to ask a question...  I hear a lot about the pumps and dumps and how much it hurts the coins.

This is just an idea, and I haven't thought of a full algorithm, but I could do it too, and make some simulations.
Would it be possible to create a coin that, after every transaction from account to account, it increases the amount of coins available on the market?  So for example, if I put 10mil dollars into a coin, I get an increase of the same amount. That way, the coin price would stay the same.  To ensure that the growth is steady, the new coins should have a decay rate so that price of a coin has a steady increase? This way, it would be possible to increase the value of a coin once the dump occurs, so it would force people to HODL onto their coins.


Just wondering, and would like to hear your opinions.

[pedrog]

Hi, this is my first post in a forum. The reason why I have registered is to ask a question...  I hear a lot about the pumps and dumps and how much it hurts the coins.

This is just an idea, and I haven't thought of a full algorithm, but I could do it too, and make some simulations.
Would it be possible to create a coin that, after every transaction from account to account, it increases the amount of coins available on the market?  So for example, if I put 10mil dollars into a coin, I get an increase of the same amount. That way, the coin price would stay the same.  To ensure that the growth is steady, the new coins should have a decay rate so that price of a coin has a steady increase? This way, it would be possible to increase the value of a coin once the dump occurs, so it would force people to HODL onto their coins.


Just wondering, and would like to hear your opinions.

It is possible but it has to be centralized.

The only way to keep the value stable is to be pegged to US dollar or Euro, like Tether, this way value will not diverge much from the pegged currency.

[manselr]

Hi, this is my first post in a forum. The reason why I have registered is to ask a question...  I hear a lot about the pumps and dumps and how much it hurts the coins.

This is just an idea, and I haven't thought of a full algorithm, but I could do it too, and make some simulations.
Would it be possible to create a coin that, after every transaction from account to account, it increases the amount of coins available on the market?  So for example, if I put 10mil dollars into a coin, I get an increase of the same amount. That way, the coin price would stay the same.  To ensure that the growth is steady, the new coins should have a decay rate so that price of a coin has a steady increase? This way, it would be possible to increase the value of a coin once the dump occurs, so it would force people to HODL onto their coins.


Just wondering, and would like to hear your opinions.

It is possible but it has to be centralized.

The only way to keep the value stable is to be pegged to US dollar or Euro, like Tetherm this way value will not diverge much from the pegged currency.

This. A coin that has a stable price is a coin that has a controlled market, which is not very attractive for anyone that wants to get rich by holding something that increases in value over time. If you want to hold something that stays stable, just hold fiat. And remember, it's not really stable, it has an inflation % that will slowly but surely decrease your purchasing power over time.

There's also the possibility o making the coin release slower and linear overtime to not incentivize dumping, but again, this is not attractive as a store of value. You can't have something that is not scarce and have it go up with time at the same time.

[HotCold]

How would you prevent the news coin from flooding the market and dropping the price?

[xiaohang07]

Tether is a coin that is anti-pump and dump. Its price is tethered to $1 almost perfectly for most of the time. And there will be other stable-price tokens incoming recently.

[HellCoinLTE]

I was not thinking about holding onto a specific value. To prevent the flooding, the total amount of available coins would burn over time. Second, Lets say I buy 10 coins for 10Mil $. As soon as I do that, the amount of available coins would increase by +10 so that value of a coin would stay the same.  The point is not to have a straight horizontal line on graphs like the Tether does, but to have a constant positive slope.

Tether is a good starting point, but the question is, how to make the positive slope instead of  a zero-slope in regards to a Tether?

PS I do not care about what investors, gamblers and alike may think and how valuable it would be to them.

[Black House Up]

A coin that hasn't been mentioned here yet, is the Steem Backed Dollar (SBD). This SBD is worth exactly $1, because you can convert SBD to STEEM at a rate of 1$ per SBD (with a delay of 3.5 days).

This would obviously only work if there stays a demand for Steem, otherwise you could convert it to steem, but then no one would want to buy it, but the current Steem Markets are very active and they're not going to fall soon.

More information on steemit.com

[pedrog]

I was not thinking about holding onto a specific value. To prevent the flooding, the total amount of available coins would burn over time. Second, Lets say I buy 10 coins for 10Mil $. As soon as I do that, the amount of available coins would increase by +10 so that value of a coin would stay the same.  The point is not to have a straight horizontal line on graphs like the Tether does, but to have a constant positive slope.

Tether is a good starting point, but the question is, how to make the positive slope instead of  a zero-slope in regards to a Tether?

PS I do not care about what investors, gamblers and alike may think and how valuable it would be to them.

You can do that but it has to be centralized!

You issue and buy back in your own exchange and you control the prices...

[White sugar]

Yes, any coin that is fully controlled by the state, or with a fixed exchanged rate. I think some countries have or had them.

Unless you control the market by force there is no way to make avoid pumps and dumps

[Poink]

I've read the FEDERAL is designing a "FederalCoin" which for all intents and purposes is what Tether does but backed by the government.  IF that happens then maybe we will have a real marker currency we can measure against and not BTC.

I think it will help the cryptoworld a lot if that happens.

[svojoe]

Hi, this is my first post in a forum. The reason why I have registered is to ask a question...  I hear a lot about the pumps and dumps and how much it hurts the coins.

This is just an idea, and I haven't thought of a full algorithm, but I could do it too, and make some simulations.
Would it be possible to create a coin that, after every transaction from account to account, it increases the amount of coins available on the market?  So for example, if I put 10mil dollars into a coin, I get an increase of the same amount. That way, the coin price would stay the same.  To ensure that the growth is steady, the new coins should have a decay rate so that price of a coin has a steady increase? This way, it would be possible to increase the value of a coin once the dump occurs, so it would force people to HODL onto their coins.


Just wondering, and would like to hear your opinions.

Congritulations! You invented Teether It works just like your scheme. There is no problems to make this kind of algo as you can see)

[HellCoinLTE]

@White sugar

I see the issue now, thanks. So perhaps by including the calculated value inside a block-chain (so centralized exchanges can't do anything else with it)... and/or having the de-centralized exchanges... Perhaps we are not there yet.


@svojoe
Yes, except that I want to have a constant positive slope, when compared to Teether (EDIT: Either in comparison to USD or BTC).

[generalizethis]

@White sugar

I see the issue now, thanks. So perhaps by including the calculated value inside a block-chain (so centralized exchanges can't do anything else with it)... and/or having the de-centralized exchanges... Perhaps we are not there yet.


@svojoe
Yes, except that I want to have a constant positive slope, when compared to Teether.

This would be the current dollar model with deflation instead of inflation. Tough to pull off without government controls.

[HellCoinLTE]

@generalizethis
I see... 

Well, I did want to know whether such a thing would be possible at all.  It would, and that is all good for just a start. I am sure that some clever model can be designed based on that idea so that there are no government controls.

Thanks y'all !

[svojoe]

@White sugar

I see the issue now, thanks. So perhaps by including the calculated value inside a block-chain (so centralized exchanges can't do anything else with it)... and/or having the de-centralized exchanges... Perhaps we are not there yet.


@svojoe
Yes, except that I want to have a constant positive slope, when compared to Teether.

This would be the current dollar model with deflation instead of inflation. Tough to pull off without government controls.

BTW this model with negative inflation (i.e. deflation) is very harmful for business and economics from macroeconomics point of view. It would lead to unstability. That's why it won't be accepted by governments (as well as crypto at all, especially now).

[manselr]

@White sugar

I see the issue now, thanks. So perhaps by including the calculated value inside a block-chain (so centralized exchanges can't do anything else with it)... and/or having the de-centralized exchanges... Perhaps we are not there yet.


@svojoe
Yes, except that I want to have a constant positive slope, when compared to Teether.

This would be the current dollar model with deflation instead of inflation. Tough to pull off without government controls.

BTW this model with negative inflation (i.e. deflation) is very harmful for business and economics from macroeconomics point of view. It would lead to unstability. That's why it won't be accepted by governments (as well as crypto at all, especially now).

Deflation incentives smart spending, not mindless spending, like inflation does. Inflation doesn't make you value money enough. That is why with bitcoin (deflation) you only spend it if you really need it, because if you don't, you use the money you don't value as much (fiat) to buy groceries or whatever other things you may not even need.

[NiallW]

Hi, this is my first post in a forum. The reason why I have registered is to ask a question...  I hear a lot about the pumps and dumps and how much it hurts the coins.

This is just an idea, and I haven't thought of a full algorithm, but I could do it too, and make some simulations.
Would it be possible to create a coin that, after every transaction from account to account, it increases the amount of coins available on the market?  So for example, if I put 10mil dollars into a coin, I get an increase of the same amount. That way, the coin price would stay the same.  To ensure that the growth is steady, the new coins should have a decay rate so that price of a coin has a steady increase? This way, it would be possible to increase the value of a coin once the dump occurs, so it would force people to HODL onto their coins.


Just wondering, and would like to hear your opinions.

the problem with what you've proposed here is that whilst you can expand the supply of coins when demand goes up, you can't reduce the supply of coins when demand goes down (not to say supply can't be reduced, just what's been suggested here doesn't imply that it can).

I did once try running some calculations on a hypothetical coin that would delete coins used in transaction fees and use variable block rewards to keep volume at a fixed rate but the problem is that cryptocurrencies regularly go up or down 25% per week, so you'd have to reduce the supply of coins by a huge amount whenever demand drops. the only way this hypothetical currency would work is either have ridiculously high transaction fees or run the risk of constantly devaluing itself too much. Decreasing the value of each individual coin is fairly easy but increasing the value is much harder.

If you wanted a centralized currency that increases in value, you could copy tether (central exchange buys and sells coins at a fixed value) but use something like transaction fees to slowly reduce the supply and push the central exchange price up accordingly but this would only be as much increase in price as there is decrease in coins so higher transaction fees would be needed for higher growth in value.

[HellCoinLTE]

@NiallW

Why not simply generate accounts so that whenever a transaction is made TO account, the overall supply increases by that many coins, and when coins are pulled FROM the account, the overall supply decreases by such an amount + the decay rate per account ?

I know that it is easier to say than to be done, but just hypothetically speaking.

The overall supply can be calculated by going trough a block-chain. The thing I am not certain about is how to make the supply be infinite and not finite like BTC (and at which point would the supply grow without a decay or burning?) - I have no idea.

[Eric Cartman]

No it doesn't exist

[HellCoinLTE]

No it doesn't exist