Is Hoarding Going to Hurt NXT?

[Jaguar0625]

Looking at the block explorer statistics (http://87.230.14.1/nxt/nxt.cgi?action=30), the top 18 accounts contain 639M NXT (63.9%). In comparison, all the current sell orders on dgex.com add up to 1.49M (1.49%).

With this significant amount of hoarding, it becomes very difficult for people not part of the genesis block to build up a sizable stake. I'm curious if people think this amount of concentration and lack of liquidity will end up hurting NXT?

[JohnyCrypt]

Check #4 on the wiki.
http://nxtcoin.wikia.com/wiki/The_Nxt_Wiki

[miztaziggy]

That doesn't answer his question. At all.

Just because it was announced weeks in advance doesn't mean it will help.

Personally, I think that it will hurt this coin. Here's why:

The original holders of the coin will be holding in hope of the price rising and making lots of money.

Users of this forum want to buy NXT and will do so in limited quantities also hoping the price rises.

For the price to rise there needs to be more than just the couple of hundred users on this forum buying and selling. For there to be more users, there needs to be more people with a stake in this currency, and that doesn't look like it's going to happen.

If the price does rise, it will be because there is VERY limited supply and some demand from the BTC forum members. As the price rises, it's likely the initial stakeholders will start to sell off their shares. Because they have such a huge amount of the coin compared to everyone else, the tiny market will not sustain a sell off like that.

In my opinion it's a catch 22.

You have too small a market to sustain a sell off by the stakeholders.

To grow the market, the coin needs to be distributed to more people.

But without a big enough market, the stakeholders will never be able to sell off their stake.


If it does ever grow, I think it will be a very very slow growth and it will have the biggest spikes / crashes of any of the currencies.

It's basically Ripple, only this time the creator and a few friends kept it all for themselves rather than gave it away.

[MadeTran]

If the top %ers don't distribute more....yes....it won't make it. Keep in mind though, this is in the beta phase. We haven't even "officially" launched yet. The big selling point is going to be the colored coins. That's when your gonna see more of them leave the account holder wallets....that's when it's gonna really start popping. We've needed a decentralized exchange for alt coins for quite a long time. NXT is gonna be the currency used to trade between the coins.

I think holders are waiting until they are able to trade them on the market for other coins.....even so, yes....they aren't distrubiting enough of them. If they don't get their shit together, someone is going to clone NXT when the source is released and do it the right way.....and the clone will be more successful than the original

[mi2]

This really is disappointing. Stakeholders obviously don't realise they are killing the coin and won't be rich at all (except those lucky ones who managed to sell/distribute at rate 100k NXT for 1 BTC and similar). I believe this coin's biggest weakness is human greed.

[vkontakte]

This really is disappointing. Stakeholders obviously don't realise they are killing the coin and won't be rich at all (except those lucky ones who managed to sell/distribute at rate 100k NXT for 1 BTC and similar). I believe this coin's biggest weakness is human greed.

Thats ok, it will be opensourced, so anybody could make improved version later

[Graviton]

I also think the distribution has been - and is continuing to be under the current plan - too centralized. This will likely cause problems with just a few of the genesis angels dumping coin in the intermediate future, or likewise not dumping enough in good time.

Thats ok, it will be opensourced, so anybody could make improved version later

Plans are going on where the full source is not released until 6 months from launch, if at all.

[mi2]

And looking at the stats: http://87.230.14.1/nxt/nxt.cgi?action=2

Well, I'll just keep some small amount of NXT if it turns out that I was wrong. Selling them and getting out of this boat as long as I can seems like the only reasonable plan ...

[Shadow]

Yes, hording is hurtful to the system. Some people want to just wait, do nothing for it, and become millionares years later. In order for NXT to succeed all large stakeholders should sell at least 50% of their shares.

[nyusavior]

I've already given up on this coin. The founders are in it to make it rich, that's all. They don't give a rats ass about the community. At least peercoin, litecoin founder actually made a pretense of caring.

NXT is fine to speculate in but I wouldn't hold onto this coin long term. Make sure you sell before the founders do.

[alpha7bravo]

Have any of the major stakeholders commented on this?  Thinking this through is very worrisome.  The long term viability of NXT really looks to be joined with the decentralization of the coin.  As this is still in beta, however, I will continue to provide processing time and watch NXT's growth for awhile.  Minus the current centralization, NXT seems like the most interesting next gen currency.

Thanks,
--Alpha7Bravo

[bizz]

Markets will decide. If market (you) thinks too little people have too many coins price will drop and put pressure on hoarders to sell or do giveaways and promotions.

If price jumps hoarders will sell again because they will want to cash out some.

In between all of this new hoarders will come and things will even out. That already happened in bitcoin. Early adopters/hoarders are being replaced by new hoarders like Secondmarket.

[mripper]

Yes, if the hoarders don't sell their coins, or post a giveaway, the currency will definitely suffer.  I'm not sure why BCNext didn't just keep half the Nxt on launch and give it away. 

[lyynx]

At this point, if the Stakeholders do not distribute the coins as planned, the only true recourse is for everyone to abandon the project for a while. Turn off your VPN's and Clients, stop posting and spreading the word and come back in 6 months. In fact, this could potentially help the project. Less questions for the developer to answer and more coding. Then perhaps, the hoarders will be more apt to sell.

[luhao007]

At this point, if the Stakeholders do not distribute the coins as planned, the only true recourse is for everyone to abandon the project for a while. Turn off your VPN's and Clients, stop posting and spreading the word and come back in 6 months. In fact, this could potentially help the project. Less questions for the developer to answer and more coding. Then perhaps, the hoarders will be more apt to sell.

Agreed, we should let those people who have more than 10mil coins know, they are actually killing this coin.
Also, the more coin it is in public, the more value it will have, if 63.9% is holding in those big account and never gonna transferred, then it is no more than a great deflation that the value of NXT are deflated to 36.1%!