[LTC IPO]: Litecoin's Pre-Gox Project
II. Effects of Pumps
III. The Plan: LTC IPO
a) Investor Interest
b) The Pre-Gox Pump
c) Miner coordination
IV. Information and Contact
I. Introduction
MtGox support of Litecoin has been officially announced on their
Facebook page with a tentative July release date.
This project, named
LTC IPO, coincides with the MtGox support date, bringing forth a coordinated effort to put LTC Litecoin in the spotlight for good, legitimize the coin, and generate interest in its potential as a serious competitor to BTC and one of the leading tools in digital commerce.
We all know what will happen when Gox supports LTC: Price will rise immensely and more investors and developers become interested. This project serves to amplify the effect through three distinct paths: Investor interest, a pump (large price increase), and miner coordination.
Perhaps the Gox support event in conjunction with this LTC IPO project may kick off the first LTC bubble, in the style of $1-$32 BTC.
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II. Effects of Pumps
I am Fontas. You may know me from the BTC-e chatbox, where I organized many pumps of alt coins through twitter (@fontase) during the months of April and May. I brought TRC 1400% up, DVC 600% up, NMC 730% up, NVC permanently 50% up, and contributed to the LTC rise of April 1.
Remember the day TRC and PPC gained BTC-e support? April 4th 2013. There was a TRC pump to coincide with the BTC-e support of the coin. The effect of the hype was enormous, and TRC rose from a pre-pump low of 0.0008 on Vircurex to a high of 0.017 on BTC-e. That's a gain of 2025%.
In contrast, PPC, which was supported on the same day, did not experience the same rise. Without a pump and hype campaign, it rose on its own from a low of 0.0011 to a high of 0.00349. While a rise of 3.17x is still very respectable, the effect of a hype campaign and pump for TRC resulted in a rise nearly an order of magnitude more violent.
The effects of the TRC IPO pump were felt for months, and TRC remained in the general price range high above PPC. The 3 day TRC pump project, which I spent just 400 BTC on, resulted in the creation of hundreds of thousands of dollars of market cap.
The same can be done with LTC. If there is no pre-IPO pump, LTC will rise to perhaps $7 and top out, just like PPC. If there is indeed a pump, LTC could rise as much as TRC, reaching comfortably into the double digits. Interest in the coin would explode, bringing new talent and investment.
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III. The Plan: LTC IPO
There are three parts to the plan.
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III. 1) Investor Interest
First, we need to make sure the LTC engine is running full steam on the days leading up to the IPO. Investors and institutions need to have LTC on their watchlists. They have seen BTC bubble from $1 to $32 in the span of 2 months. They have seen BTC grow from $13 to $266 in 4 months. They know the potential of cryptocurrencies in general, and will not want to miss the next train coming around. But they won't hop on board if they don't know about it.
BTC has been in a steady decline since the $266 peak, seeing a string of red candles. Investors are getting antsy, and many pure BTC holders doubt their position. Perhaps a new opportunity presented to them will convince them to diversify into LTC.
To do this, we can contact:
Cryptocurrency podcasts (
Let's Talk Bitcoin)
Online Courses (Coursera,
Khan Academy) (Note: Stanford has a
Bitcoin Group, and also hosts the
popular online course to create a tech startup funded by Bitcoins)
News networks (
News like this is great)
Youtube channels (
The Bitcoin Channel,
Mad Bitcoins)
Bitcoin price forecast networks (
S3052 is already very bullish on LTC. Perhaps we can also interest the influential chinese blogger
796)
Bitcointalk forums (
speculation board,
altcoin section)
Bitcoin/Crypto meetups
If Bloomberg and Forbes (
Jon Matonis in particular ) cover Litecoin, it will be huge. The focus is to detail exactly why LTC is either equal to or superior to BTC (Scrypt security, faster confirmation times, very active development team), and its potential to be used in everyday digital transactions.
Many VPN providers, such as
AirVPN and
PrivateInternetAccess, have embraced BTC as a way to increase customer anonymity and privacy. They would be quick to adopt LTC as well.
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III. 2) The Pre-Gox Pump ("What can I do with all my LTC/BTC/USD?")
An analysis of trading volume during past rallies indicates that around $780 000 is necessary for each dollar of temporary rise, and $0.35 of permanent rise.
That is, for each $780 000 of market power, LTC will spike up another $1 and its long term bottom will be $0.35 higher.
I will be dedicating my cold storage BTC to this effort, for I know the positive effect it would have on my LTC holdings.
To pump the coin, there are two major steps. The first step, remove LTC sell orders, remove sell walls, then place market buy orders using USD and BTC reserves. Large sell walls in particular, >10000 LTC, have the power to cripple a rally. Thus they must be bought up in a timely manner. If they do not fall in time, a psychological barrier may develop, impeding future price movement and slowing down the rally momentum.
The second step, after the LTC price has risen significantly, is to stop making market orders with the USD and BTC reserves, instead opting to create limit buy orders, creating buy walls. The larger, more consolidated the orders, the better. For example, one 14000 LTC buy wall is more significant than four 3500 LTC buy walls separated by a few cents of difference. It acts to create a psychological barrier to a price drop, forms support for the new higher price, and decreases downward volatility. Sellers will not sell for less than the wall price, and buyers will buy above the wall, knowing the price is unlikely to drop beneath it.
In essence: First, we make market buy orders with USD and BTC, pushing price up. Then, we make limit buy orders with USD and BTC, keeping price high. When looking to sell, we split up LTC sell orders into smaller orders.=============
III. 3) Miner coordination
This part of the plan has been reconsidered and cancelled. Not enough hash power for a significant effect.
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IV. Information and Contact
Gox has only announced LTC support in July. Currently I estimate a late July or early August launch, with a LTC/USD market.
As more information comes around, I will update the plan accordingly. I am discussing the plan with other large holders of both BTC and LTC through BTC-e PM (fontas) and Bitcointalk PM here (fontas).
