Issuing new tokens could be a possibility, but not for 1$. Those tokens need to hold the real value, which is almost at 2,5$ as per the chart above. You talk about 'share', well early investors took a risk which is higher when investing in the fund today. Maybe that deserves a premium on new token value, like 3$. That said, I don't see any reason for SEED to issue new tokens. When SEED needs more liquidity, then the fund could go to the market and get some crypt loans. This morning someone in a YT vid told me these loans are dirt cheap at the moment. The cost of the loan is a cost to the fund which decreases profits, but the fund will have the liquidity needed to invest in new token launches. At some point, peeps will like to trade their SEED, but this is not the time.
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Liquidity is covered for new token launches. No problem. It's just that I try to accumulate HBD in savings and don't touch it later.
Not thinking about loans atm but could be something that I explore soon in polygon with Aave.
read and try again.
If token is 5$ everyone gets 4 tokens more. Then the price is 1$. That allows issue more for 1$.
Sure, I understand what you say. There is no difference to your example of 5$ versus issuing new tokens right now for the price of SEED based on current fund value. Which is kinda like 2,5$ right now (a little less maybe).
I still don't see why more tokens need to enter the market. As I don't see why it is a problem that it's not easy to trade the token. At some point, more SEED holders will want to sell. But that is not the case now. Fine with me, and should be fine for SEED as well.
It's perfectly fine! It was a 'positive ranting' in the sense of how difficult getting that initial liquidity has been.
The SEED holders simply believe in the fund manager, hence no one wants to sell :)
What I think is new to crypto compared to the fiat world, is investment funds becoming tradable on the free market. I still wonder about that. What is the benefit of a tradable investment fund? The value of the investment fund is the value of all investments. I suppose, by making an investment fund publicly tradable, the only positive effect of that is the value of the investment fund manager is included in the price. All the other elements such as market sentiment, I see as a negative effect. What is your take on this?
I agree completely but... how do we value the fund manager? (rather than with our trust)
Did you just agree and give the reason why an investment should not be publicly tradeable? 😂
Maybe I just misundertood. I agree in the following:
A 'tradable' crypto fund isn't different (at least in the core) than investing in a basket of assets ( same as a investment fund which most banks offer).
HOWEVER! (and it's a big one), crypto fund can offer a flexibility which banks can only dream for. Main thing is that these type of funds doesn't have interests aligned with the customer since the bank basically relies on fees on the customer itself, and no 'real profits'.
It's also remarkable all the hidden fees, since the fund manager from the bank usually will pick the assets which HE/SHE is allowed to (and not necessarily the optimal ones). P.e products from the same branch
TL;DR banks incentives aren't necessarily the same with the customer. A problem which doesn't happen in crypto (if rules are clear from the beginning, of course).
Dunno if I'm missing something... I'm answering your question or raving to much? :/