Exchanges are for trading, nothing else. Ignore the noise. Stick to trading proof-of-work currencies. Don’t fall victim to the staking schemes. The market is double-auction, buyers and sellers compete for the best price, the law of demand still applies. Price of the asset increase, quantity demanded decreases.
- Too much supply- not enough demand, price goes down.
- High demand – scarce supply price goes up
I am suggesting that staking-schemes are used toby the insiders and exchanges to limit the amount of incoming supply during price rallies by incentivizing retail to hodl.
If you stake, you can’t take profit or sell. Your tokens are locked. Which is very convenient for Binance and IEO-Insiders during distribution-runs. If you understand the wyckoff distribution, accumulation cycles. You know exactly what I am talking about. Whole-sale-price buying during bear-cycles, retail-price distribution during bull-cycles. In this case, Binance and the IEO-insiders don’t have to buy, they already own the 70% of the supply. Since you’re dealing with erc-20 testnet tokens, the cost of production is zero fucking dollars. You’re literally buying a tokenized concept or idea, backed by air, the tokens are spawned out of thin air.
When Exchanges and IEO-insiders are distributing their supply at profitable price level, they don’t want retail to dilute the supply. Supply dilution shifts the balance between supply and demand. The sweet spot = just enough supply to meet the overwhelming demand so price can surge higher or remain within a distribution range.
This is why I am suggesting that exchanges and the IEO-insiders orchestrate staking-schemes before major price pumps if this theory holds water then Staking-schemes are a good indicator for price-pumps.
When the exchange and IEO-insiders are ”distributing” their supply, make sure you do NOT stake your coins. If you stake, you can’t sell at unfair value high.
All markets ultimately revolve around FAIR VALUE. The average price that the market agrees to buy and sell at it. This price acts like a magnet, technically it’s called POC or a HighVolumeNode. Price often returns to this fair price level. Uptrends are supply-demand imbalances (price is moving away from fair value, the price is basicly unfairly high and sooner or later the buyers will run out and the price tanks. How do we see this on charts? Study Volume Traded at Price.
To learn about mean regression, click here. Trading isn’t gambling, if you understand VALUE. High probability that price returns back to the Average Value.
TEZOS staking scheme
OKEX SUPPLY MONOPOLY
Most exchanges are out there to scam their customers. Next on the list is OKEX.com. OKEX teamed up with the Pledgecamp team (the advisors, VC, early backers, lets call them the insiders. Okex-exchange artificially inflated the PLG-price. That is usually good news, but the retail investors who participated in the ICO were barred from depositing their tokens on OKEX.
OKex and the insiders had a complete monopoly on distribution. Everybody wants to sell at a higher-price and take profit. But if you’re a scumbag like PledgeCamp and OKex, you play dirty. It all trickles down to curbing down on supply to prevent supply-dilution. The law of demand still applies here. Quantity demanded decreases and price increases.
Deposits opened deposits after demand for pledgecoin plummeted. Blocking deposits is one of the scummiest moves I’ve ever seen.
No ICO has ever pulled a more blatant Pump n Dump like this ever in the history of ICO scams.