Why people sell maxcoins?

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Meconomy153
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Why people sell maxcoins?

Post by Meconomy153 » Sun May 03, 2015 4:29 pm

Maxcoin will be sold for a variety of reasons, no matter which exchange you use. The sellers are people who have actually acquired the coin somehow and think selling is in their best interest at the time.

These are some of the reasons:
- miners covering power costs;
- mining pools selling their commissions to cover costs;
- merchants accepting the coin selling to purchase more inventory;
- early investors need petrodollars to buy oil (or food);
- and yes speculators selling to get some price movement when the coin is trading sideways for extended periods. Equally, investors and speculators are buying at times for the same reason.

Having liquidity (which needs sellers) means investors can buy in at a target price without moving the price up to an unacceptable level. For example, if you want to store $100,000 in Maxcoin for the future, it is not in your interest to move the price 50% whilst accumulating your position. So having willing sellers is actually to your advantage.

Meconomy153
Site Admin
Posts: 95
Joined: Sun Oct 12, 2014 2:00 pm

Selling maxcoins is good for Maxcoin

Post by Meconomy153 » Sun May 03, 2015 4:48 pm

Mike Murphy wrote:What sellers are doing is very beneficial for Maxcoin in the long term. They are increasing the distribution of mining rewards by selling coins to the open market.

Of course selling causes the price of Maxcoin go down, but for those who actually believe in the long term success of the Maxcoin project, this allows to stock up on cheap coins at a fraction of the price a rational market would be willing to sell them for. So this is as an opportunity rather than a setback.

Sellers are now selling maxcoins under the cost of production. The Bitcoin camp had the same problems back in 2012 where they were all panicking that powerful miners were unwilling to hold their positions and incessantly dumped their mining rewards on the market. Ultimately, the bitcoin sellers were forced to change their behaviour either to prevent losses and because it became more in their interest to hold than to sell.

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