RE: When are you redeeming my WHALESHAREs Fuzzy?! It's been over a week now, you PROMISED!
Thanks for sharing, Alex.
I have to wonder though, if people are being encouraged to invest and trust in systems which can lose 90% of their value overnight, maybe that's not a very good system? Maybe a better structure is needed?
I've not personally invested or been involved in the whaleshare / beyondbit ecosystem because I don't understand it yet and haven't made the time to do research. When I hear about 90% of the value going away, it gives me more reason not to look into it much. Sounds like Fuzzy is doing a fantastic thing for the community he cares about. I also hope we have systems in the future which don't rely on a form of altruism to flourish. Altruism, to me, is a confusing word because ultimately we all take action which benefits us, even if it's just to create a world we want to live in.
Understand Luke that this is not like some ICO or other new blockchain coin offering. These are utility tokens that basically allow you to upvote your own posts with a certain expected amount of SP from the backing account.
In fact, the WHALESHARE concept is likely what inspired STEEMIT to introduce its Smart Media Tokens (SMTs), which would function almost exactly the same way, except they would be tradeable and usable for upvotes directly on the STEEMIT platform, as opposed to residing on the bitshares platform.
These tokens are generally given out, often for free at post-promotion events, as prizes in contests, or for valuable work and other contributions provided to the STEEMIT and BeyondBitcoin community. Those who receive them can opt to dump them on the "open market" (ie. trading on bitshares), or they can choose to use them to upvote posts. The vote power of each token was inherently based on the voting power of the particular STEEMIT account backing them.
In this case, blocktrades had delegated 150K SP to the account, which would inherently give the coin a particular intrinsic value based on that. In fact, a month ago, the token were trading at a nearly 50% discount on bitshares to what they were actually worth if you used them to upvote your post. That's how markets work, anything's possible. Just like SBD worth nearly 17:1 at one point is also possible, despite the fact they should never be worth much more than $1 US dollar each.
Understand though, none of these tokens were meant to be "investments", per say. What Fuzzy is doing is offering to redeem them for his own token, BEYONDBITs (backed by his own account with 300K SP), for more or less the equivalent amount of vote power WHALESHARE tokens held before delegation was pulled.
Hopefully this explanation helps provide a better understanding of how it all works.
True, but some try and make the world better just for themselves, while others choose to empower others to rise as well, because they also realize that the whole world can be just a bit brighter for the effort.
"When you dim your light, so that someone else can shine, the whole world gets darker."
Hey @lukestokes.
Whaleshares was never an operation that encouraged people to invest in. They have always been distributed for free during contests and giveaways, or earned for making an effort to help the community in some way.
I understand how it could be confusing that a token is distributed and managed in this manner, not to mention the use case.
Whaleshares is a cross chain utility token on the bitshares platform that allows you to trade it in for a vote from @officialfuzzy on steemit.
It's been used to reward people for interaction, participation and effort.
When we see it devalued 90%, that simply means that the rewards aren't as powerful as they once were.
There's no problem because I know that everyone has the right mindset to succeed no matter the size of the payout.
Feel free to come say hi sometime :)
https://discord.gg/NTKXJhK