That's not how it works. Lykkes trading is currently managed by a trading bot. You can check out how it works on their website.
Ok, if lykke is using a trading bot ie an algo, without their being an ability to buy on a limit price or market price, that means its using an artificial mechanism to set the LKK price.
Yes, anyone who bothered to do 5 mins research or read the documentation on the website, or spent 5 mins with the app would understand that limit orders are not yet in place, and the market trading is managed by a bot.
In other words, lykke is artificially setting the price of the LKK token which isnt using free market forces. In baby terms...it means their gaming their price to their advantage.
LKK isnt trading on the free market ie on bittrex, polo etc so of course the LKK pricing system is biased. As a private company, lykke is entitled to do that obviously, but investors need to be aware that they're paying a substantial premium for LKK tokens than if it was on the free market.
No. This is false. The market is setting the price of LKK based on the constraints of the algo bot. If nobody is buying, and people are selling, the bot will drop the spot price for buys. That's how it works.
Lykke will be added to other exchanges, however, lykke is an exchange, it's going to be directly competing with the likes of polo and kraken. Once limit orders are in place on like (set as a near term goal so should be very soon), this issue will evaporate.
If you don't like the way the Lykke market is currently set up with the algo trading bot. Don't buy. It's pretty clear and simple. Nobody is forcing you to.
There's a big difference between putting coins in circulation, and putting sell orders out for tonnes of coins.
What they're doing is simply giving the existing shareholders the ability to sell IF they wish. This means the angel investors, founders, institutional guys, and people who believed in Lykke can sell their original distribution if they wish.
The only thing that's happening is levelling the field between current LKK holders, and original shareholders.
Yes theres no sell orders automatically set for coins but that's not what I mean at all.
What lykke is doing is playing a technical trick: shareholder tokens count towards market cap just as much as tokens bought on the exchange. However, the way lykke has done its valuation (as it shows on coinmarketcap) is to only include the trading wallet tokens on its market cap.
Just because lykke decides that only trading wallet coins should count in the valuation doesn't actually make it true. Its the free market and industry which decides your true valuation.
As soon as people realise lykke isnt trading freely, there is less incentive for investors.
Uh, this isn't Lykke doing that. It's coinmarketcap. Look here at a different website that calculates correctly:
https://bravenewcoin.com/market-cap/If you have a problem with coinmarketcap, don't use it. It's coinmarketcaps problem. Again, do 5 mins research on Lykke and you'd see the error in coinmarketcaps calculation. Perhaps you can email them and get them to fix how they calculate market cap?
It is absolutely necessary that this occurs, as it further distributes ownership over time. This is a good thing.
True, this transparency does help, but it should have been done from the very start. Olsen could have easily allowed all coins to contribute to market cap from the beginning - and he should have because 'private" tokens were still bought at a price, meaning they have value.
So, by flooding the market, im not talking about their being sell orders because there's more supply of tokens. Im talking about an attempt to game the system by cooking your free token vs unavailable token numbers and thinking people won't notice when your valuation is totally out of whack.
If they were transparent from the beginning they wouldn't have this problem.
But that's not how this works. Again, your entire premise is based on the false representation given by coinmarketcap. If you have a problem, it's with them.
Think about it this way. The other 90% of Lykke shareholders are just that, shareholders. They were not originally LKK holders but shareholders. Lykke is transitioning to an LKK holder based model. 10% of the shares of Lykke were available for sale on the Lykke exchange representated by LKK coins. The remainder 90% were already purchased owned by the founders, angel investors, etc. who originally funded the project. Their shares were never on the market to begin with, so private wallet trading wallet for them is irrelevant, as their stakes were locked as per shareholder agreement. You can read all about this on their website.
I mean, does nobody read the company docs anymore?
Lykke is a company, people need to really get their head around this. It's not a cryptocurrency.
