For trading EOS on Bitfinex, knowing how the Initial Coin Offering (ICO) distribution system works is critical because of the possibility to use Ethereum at https://eos.io to often buy EOS much cheaper than market price!
EOS ICO Token Distribution System and Impact on Bitfinex Trading?
Do you have any EOS on Bitfinex? Are you trading or trying to hold it? If so, the information seen here might help with losing money holding EOS while 2 million more are given out every day often below market price!
Alternatively, what I share here might help if you want to buy into EOS to wait for the lowest price point during the ICO and/or to buy a little bit over time instead of buying all at once to be in position before excitement builds over transfer off of the Ethereum blockchain. While the price could be higher before the transfer than it is today, it seems nearly certain to go down much further first given what I am about to show you.
This system allows for buying the EOS token often in a much cheaper rate than it's actually trading on Bitfinex.
Two weeks ago when I filmed this as a video, EOS was trading at about $0.71 on Bitfinex. Today it is under $0.60 and this token distribution system is likely to take it under $0.20 before it is finished!
If you do the math, which I've done to show you this example, earlier on the day of preparing this for you 4,445 Ethereum or so were put into the crowdsale at about $300 per Ethereum.
4,445 x $300 = $1,333,500
The price equaling about $1.3 million divided by two million EOS given out at the crowd sale.
$1,333,500 ÷ 2,000,000 = $0.66
Long story short, the crowdsale that just finished a little while ago and is going on every single day for about 254 more days, this two million distribution in exchange for Ethereum nearly guarantees a consistent price drop on Bitfinex.
Because if you can purchase EOS through the crowdsale at $0.66 and then you can get $0.71 for it or $0.72 for it on Bitfinex, that's allowing millions of dollars every day of EOS to be bought at below market price, which then is worth immediately selling to make that guaranteed profit.
Then every single day it happens a few hours before this, so it's 11:00 AM Eastern Time. An hour or two ago, every day, savvy traders are checking how much Ethereum, what the price of Ethereum is, and how much EOS is coming out. Every day, anytime the price is below market price, the savvy traders are dumping Ethereum into grab the cheap EOS and then more than likely dumping it right away on the market to make that guaranteed profit.
Therefore, just holding EOS when about three times as much of it is going to be as is currently available. Right now, there's 377 million EOS in circulation. The total supply is going to be a billion within the next 250 something days and it's being given out two million every single day.
For trading, this is very bad in terms of just wanting to hold. My recommendation is for this reason, to not hold any EOS until this token distribution is done because no matter what the development team or what comes out, or what happens, there are so many new EOS tokens being given out every single day through this system.
Now, if you want to buy it, this is a good system to use if you're allowed to buy it based on your country, and if you see the prices to get it cheaper. Now, beware, other people are watching this as well. Sometimes this could actually backfire if enough Ethereum pours in at the last minute.
It might be possible to buy it at above market price, and then feel the need to hold on to it.
Well, the problem is every time there's a day worth bought below market price, that's almost a guaranteed down sell. Anytime there's a price spike on one particular day, anyone who's been buying in for cheaper is waiting for another great opportunity to cash out.
As you can see in this one day here, it went from $1.28 as probably a huge buyer cashed out, down to $0.90 and then it's consistently dropped.
I personally believe this token distribution system will drive the price down to maybe even below $0.10 and potentially $0.20 or $0.30. It was $0.72 the day I filmed the video for this which was on September 30, 2017 and today on October 13, 2017 when the post is ready it is down below $0.60. This token distribution system is essential information to know about trading on Bitfinex.
You might think, "Jerry, you're stupid. No one could possibly not know about this. Everyone knows about this."
I used to buy and sell a bunch of cryptocurrencies on Poloniex and the majority of them I knew almost nothing about. I hope this has been helpful if you've bought EOS on Bitfinex to realize the bigger picture and to understand how that is impacting the EOS/US Dollar price for the next year in buying, selling and trading.
Thank you very much for reading this post on Steemit, which was originally filmed as the video below!
I appreciate you being here and I hope you have a wonderful day today.
If you found this post helpful on Steemit, would you please upvote it and follow me because you will then be able to see more posts like this in your home feed?
Love,
Jerry Banfield with edits by @gmichelbkk on the transcript by GoTranscript
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