The reasons of DTC price drop and optimal strategy for investors
Attention! This article is highly recommended for all DateCoin investors!
A bunch of math is given below!
Dear DateCoin investor or trader!
My name is Nikita Anufriev and I am CEO and founder of DateCoin with 10+ years of experience in trading.
For both trading guru and first-time investors of DateCoin, this article aims to contribute to better understanding of token price formation and trading strategy optimization.
This article is the first in a row dedicated to efficient trading and management of DTC tokens as well as other crypto assets. I believe QA format to be the best to achieve this goal.
Where is DTC token listed?
DTC is listed at YoBit crypto exchange in pair with BTC and ETH
DTC token price dropped 80% compared to opening price. Is it a scam?
No doubts, DTC token is a scam, because its price has dropped. Are you kidding me? The only reason for the drop is a token sale with the sell price lower than that at ICO. The latter comes from the difficulties arising when trying to calculate the correct sell price.
For about 8 months we advertised DTC nominated in ETH, but when the trade started both DTC/ETH and DTC/BTC pairs were presented.We presume the mess resulted and disoriented DateCoin investors to partially be our fault.
How to get the correct sell and buy price? How to convert the price in US dollars or ETH? Those are among the questions our investors and traders should be able to answer. You can find the detailed answers below.
Have you dropped in the price on purpose?
This is one of the FAQs. They say, we can benefit from price drop, buy tokens back at lower price and then sell on rise. Just one more misconception.
Token buyback is not profitable for the company as it results in reduced funds allocated for product development and ads.
I would like to ensure our investors, that DateCoin is not involved in token price manipulation via buy/sell at the secondary market.
Who is then selling the tokens?
Most of the sellers right now never bought tokens, but got it as remuneration for product promotion and ads.
What are the factors affecting token price rise?
The answer is simple:investors/token holders/traders/DateCoin users. If YOU hold the tokens and other investors are doing the same, then the price rises. If YOU and/or other investors start to panic and want to get rid of tokens, then the price drops. Generally speaking, the token price is the indicator of investors trust.
Does it make sense to get rid of all the tokens right now to get at least something? Is the game over?
At this point I would like to ask you a simple question.
Why have you bought DTC token?
No matter whether you bought at PreSale or made a last-minute purchase. Is it for gettting 10–20% interest or to repeat BTC/ETH success and increase your investments 10- or 20-fold?
I believe that up to 80% of investors have bought the token as they trust the project and want to earn more compared to savings account.
If that is the case, what’s the point to sell all the tokens right now?
Let us make some math!
Sell orders in ETH with the price lower than that at ICO (valid for the date of publication):
The total volume of tokens for sale is just 17663 DTC (~2.2209 ETH). Are you kidding me?
It means that you can get 2.2209 / 17 663 = 0,00012574 ETH for 1 DTC
That is quite an attractive price compared to ICO (1DTC=0.00025 ETH).
Do you really think that we are unable to buy tokens back with only 2.2209 ETH spent? Of course, WE CAN. But we also want to give our investors a chance to buy more tokens!
Now let us discuss the most interesting part, namely DTC/BTC pair trade.
I’m more than sure that most of you messed up with DTC/BTC price, as for prior 7 months we only nominated DTC in ETH.
To calculate DTC/BTC rate you will need a calculator. As a reference, the current ETH/BTC rate ( buy/sell ETH for BTC) is 1 ETH = 0.074709 BTC.
It means that the current DTC price in BTC is: 1 DTC = 0.00025 ETH = 0.00025 * 0.074709 = 0.00001868 BTC.
The pool of sell orders for the date of preparing this text is given below.
Let us calculate the total volume of sell orders. It is just 0.81915 BTC! That is this volume resulted in drastic price drop. Simply not serious. There are 69406 DTC for sale only.
It means that an average price of DTC is 0.81915 / 69 406 = 0.0000118 BTC!
That is quite an attractive price and a great opportunity to buy more tokens for the price almost similar to PreSale.
Are you involved in market making?
Yes, we are. However, it is critical to understand that no market making strategy (regardless the proficiency of experts involved) is capable of ensuring token price rise or even has no effect on the price.
To be exact, market making is nothing, but volume trading.
Let us consider an example.
DTC daily trading volume amounts to 2 ETH. Daily trading volume including bots is 30 ETH. The bots, however, never catch sell orders and thus its activity has almost zero impact on token price.
Thus, what is the purpose of volume trading (market making)?
It contributes to demonstrating token active trade even at very low trading volumes. That is exactly happening with DTC.
As a reminder, for token price rise higher than that at ICO, an equivalent of < 1 BTC is only required!
Another advantage of market making strategy is the resulting reduction of token buy-sell gap (to be discussed later).
What are your steps to increase DateCoin exchange rate?
We can for sure partially spend the funds raised at ICO for buyback. But what’s the point?
Thus, we are currently focused on product development.
As soon as in-app purchases for tokens will be implemented, thousands of users worldwide will be able to use their tokens. Moreover, 800k+ of our users will enter exchange to buy tokens for discounted in-app purchases.
Finally, let me bother you little bit more with math.
DateCoin revenue amounted to $2.5 million in 2017. That is equivalent to 379 BTC per year or 31.6 BTC per month provided that 1BTC=$6600. If only a half of our users buy tokens in future, the natural demand (excluding traders) will amount to 15,8 BTC (31.6 BTC / 2).
Provided that the total volume of sell orders with the price lower than that at ICO is just 0.81915 BTC, would you guess the price dynamics?
No matter when you bought DTC tokens (at PreSale or at the very last day of ICO). Now it is the best time to buy even more tokens. Thus, we strongly recommend you to hurry up and to buy tokens as the supply is limited (0.81915 BTC and 2,2209 ETH).
Good luck! Keep in mind that the token price depends on YOU as well!
DateCoin CEO and Founder (10+ years experience in trading).
Don’t hesitate to ask questions about DTC trading in comments and “Like” the best comments. As we end up with a sufficient pool of questions, the next publication will be released.