What happened to CTPSB this week?
Last week was a very interesting one for the CTPSB token. If you followed the market, you could have made some very good deals. However, there was also a wind of panic which is understandable when you look at the chart of the week:
source: hive-engine.com
What happened last week?
The market maker for the CTPSB project is always adapting its orders according to the theoretical value of the token. Normally, we set these orders once a day. We put around 40 to 50 CTPSB into the buy orders and around 500 tokens into the sell orders.
This week, a big token holder that has been inactive for quite some time sold more than 300 CTPSB tokens at once. However, instead of using the hive-engine market, he did so through hive keychain swap. This means that instead of getting around 3.2 Hive per CTPSB, he got that price only for the 50 first tokens. For the remaining tokens, he received what was in the order book for CTPSB. For some the tokens, the price was as low as 0.01 Hive! This was a very bad move for this user.
In the following days, the person who purchased these tokens at these low prices, sold them at a higher price. CTPSB tokens were sold for prices around 1.5 Hive which is a real bargain. The market maker managed to purchase the majority of these tokens but hopefully some other people managed to profit from this bargain as well.
Is there any risk for the project?
There is no risk at all, on the contrary the market maker managed to purchase around 300 CTPSB tokens without needing to make a power down. Every CTPSB token is backed by hive power and if the market maker runs out of funds, then it needs to sell tokens to @ctpsb that in return buys them and burns them with the money resulting from the powerdown.
In the present case, we didn't need to do such a thing. The market maker has still more than 1000 liquid hive to purchase tokens. Once these 1000 Hive are used, only then we would need to start a power down and it would take some time to buy back all the tokens. However, we would always offer the theoretical price for CTPSB. Hypothetical power downs would have no impact on the token value.
So to sum up, the project is safer than it has ever been and as you can see from the numbers below, the APR of the token is actually getting bigger from one week to the next.
Learn more about the CTP Swarm Booster:
I missed a great opportunity here, but that's ok. Let's all grow together!
I feel sorry for the guy who lost so much while selling his tokens...
OMG
I missed tye opportunity then.
I am feelings bad for the user and lean a lesson also that just using swap feature of keychain is also not too good.
!ALIVE
Keychain swap is a great feature but we need to understand that it simply transacts in our place on the market. The price that we can get depends on the liquidity of the market.
That sounds like a really bad move by the seller (most likely out of ignorance, using the easiest way they knew to swap the tokens), and a great deal for CTBSB, that was buying all the way down.
People are not really aware that using keychain swap is nothing else than using hive-engine with a proxy. It's a pitty to lose money that way...
I got some of those cheap CTPSB tokens!!! :)
Staying vigilant often pays off... :)
Nice move :-)
That is an interesting situation. I hope the person who did that swap learns from it and doesn't make the same mistake again.
this person has been away from hive for a long time and I don't think that he will even realize what happened to him...
Ya i saw the price fluctuations and sells at low price.
I did not buy as i did not have liquid hive.
!PIZZA
In such situations it's always difficult to define whether a project is in danger or whether there is an opportunity. That's why I found it necessary to inform about what happened...
$PIZZA slices delivered:
@imfarhad(1/5) tipped @ctpsb