OK, so I have read the whitepaper but still not sure of one thing. Bancor team is saying that they are getting rid of liquidity problem. But isn't any coin liquid at some point? If I have some not so popular asset, I could simply dump it on the market. Doesn't Bancor algoritm simply do something similar? Yes, every asset will be liquid now but probably not at the price that user would like it to be. So technically all the claims are correct, but the price would be very low if you try to sell illiquid asset in great amounts (or very high if you want to buy liqid asset in high amount).
Not really, because if you just come up with a coin, and the exchanges don't want to add it, then your coin does't have liquidity. As to why exchanges don't want to it, there could be many reasons. For example your community of potential token holders may be too small for them to profitably add the token. Although the price floats, there is liquidity, so you can exit your position if you really want to. The Bancor Protocol just gives you that initial amount of liquidity without relying on external exchanges.
