NuShares price discussion

[Empirical1.2]

NuShares have increased in value by 250% in the last 8 weeks.

This has been the result of using NuBits profits to buy back NSR shares on the open market and then burn them.

https://discuss.nubits.com/t/nsr-buyback-7-week-of-november-9-2015/2999

Over the last 7 weeks they have bought back, NuShares to the value of circa 100 BTC and burned over 1% of total NuShares supply.

I'm not sure NuShares is a long-term play given Nubits will likely fail at some point.

However if this use of some of their profits to buyback shares continues I think they will rise very strongly.


Besides having a very stable price this last year, they have apparently distributed a lot as dividends prior to the buyback as well.

$409,811 have been distributed as dividends2 over the last year, most of which was as BlockShares. Given the current NuShare market cap of $1,628,335, that is a stunning 25.17% dividend yield.

No one can say for sure whether there will be dividends in the future, but shareholders will make that decision directly. It depends on whether there are additional distributions for new Peershares like B&C Exchange, whether Nu is successful, and whether shareholders choose to use excess funds for development, share buyback or dividends. Right now they are being used for development and there is a new motion currently being voted on that would conduct share buybacks. It is unclear at the moment whether that will pass, but I suspect it will.
It is unclear whether shareholders will choose to have future excess funds used only for share buybacks or a combination of buybacks and dividends.

https://discuss.nubits.com/t/how-many-dividend-distributions-has-nushares-had-will-there-be-any-more/2739/3

[Akado]

I had some interested on NuShares at some point, but decided to go with BitShares. Didn't expect it to raise so much honestly, good for them 

[tonyk]

Empirical, we have discussed it before. Dan's stance on the burning vs returning fees to the BTS pool makes little to no sense:

"Well we are making sure we never run out of funds for development, so we put them back in the fund". It is true Dan but burning the funds is effectively a buy back which in theory as well as in practice leads to appreciation of the stock price... So if we burn them (aka buy them back) the price will go to say $1 per BTS.... are you gonna run out of funds with $700Mil to spend? And that's all without the additional benefits of increasing BTS price.

 

[Empirical1.2]

Empirical, we have discussed it before. Dan's stance on the burning vs returning fees to the BTS pool makes little to no sense:

"Well we are making sure we never run out of funds for development, so we put them back in the fund". It is true Dan but burning the funds is effectively a buy back which in theory as well as in practice leads to appreciation of the stock price... So if we burn them (aka buy them back) the price will go to say $1 per BTS.... are you gonna run out of funds with $700Mil to spend? And that's all without the additional benefits of increasing BTS price.

Yes, I agree it makes little sense.

Regards NuShares, I think the mistake they made is paying out their dividends in PPC. Now that they are doing NSR buy-backs, I think a lot of people will notice as their share price rises and take an interest in them.

[Shentist]

250% in which currency?

is it not a little bit higher then 100% in USD

and in BTC it is less then 100%

http://coinmarketcap.com/assets/nushares/#charts

[Empirical1.2]

250% in which currency?

is it not a little bit higher then 100% in USD

and in BTC it is less then 100%

http://coinmarketcap.com/assets/nushares/#charts

Yeah, my mistake, it's 150%. On September 26th before their buybacks started they were at $1.53 million and today they are $3.8 million. So a 150% increase.

[Shentist]

250% in which currency?

is it not a little bit higher then 100% in USD

and in BTC it is less then 100%

http://coinmarketcap.com/assets/nushares/#charts

Yeah, my mistake, it's 150%. On September 26th before their buybacks started they were at $1.53 million and today they are $3.8 million. So a 150% increase.

to be fair. with 100 BTC you will not move the BTS price so much.

[Empirical1.2]

250% in which currency?

is it not a little bit higher then 100% in USD

and in BTC it is less then 100%

http://coinmarketcap.com/assets/nushares/#charts

Yeah, my mistake, it's 150%. On September 26th before their buybacks started they were at $1.53 million and today they are $3.8 million. So a 150% increase.

to be fair. with 100 BTC you will not move the BTS price so much.

True.

For where NuShares is valued at the moment though and how little seems to be on the market, it seems to have good upside if they continue at that rate.

[chryspano]

Their trading volume is non existant!

[Empirical1.2]

Their trading volume is non existant!

  I assume their initial distribution was very bad/questionable. If it was a crypto-currency I wouldn't go near it.

I do notice from the NuShares site that... https://nubits.com/nushares/introduction

As of August 2015 there are approximately 835,000,000 NSR and this supply will increase at a rate of approximately 2% per year. The supply increases as Proof-of-Stake minting rewards are given to active individual minters. The current reward per block is 40 NuShares. The current block spacing time is approximately one minute.

So the 2% POS minting may encourage people to keep their NuShares minting and off the exchange.

Depending how their supposed $400 000 in dividends this last year were awarded and how often, might also give people an incentive to keep their NuShares in their wallet and off the exchange.

In general though how NuBits are awarded seems very questionable & I doubt they have enough reserves to cope with a lot of selling.

https://discuss.nubits.com/t/voting-150k-for-tier-4-sell-side-liquidity-extremely-urgent/3035

The fact that their parking rate has been at zero for a few months and that demand for their product seems to be shooting up with BTC's increased volatility, means they'll probably get away with their pretty risky practices for a while.

I know very little about NuShares though, just started looking at them a bit yesterday, when I noticed their price increase. 

Edit: They also think diluting NuShares further is viable in an emergency

With that in mind, we are well prepared to handle any sudden sell volume with more than 500 BTC in tier 4, park rates that have been at zero for many months, and the possibility of tapping our market cap at a higher level than has been the case in many months..

but with no volume/buy support as you say that looks like a non option. 

[liondani]

Their trading volume is non existant!

^THIS

[Empirical1.2]

NuShares are buying back 38.6 BTC worth this week.

https://discuss.nubits.com/t/nsr-buyback-8-week-of-november-16-2015/3052

[Ander]

The NSR buyback just bought into my sell orders and gave me profits on all the NSR I bought this week.

So beautiful.


Cant wait for next week.

[Ander]

Wonder what I should put this free 1+ BTC profit into. 
Maybe burst.  That daily moving average crossover looks yummy, after its been in a downtrend for almost a year and finally looks like it could be breaking it.

[Tuck Fheman]

Wonder what I should put this free 1+ BTC profit into. 
Maybe burst.  That daily moving average crossover looks yummy, after its been in a downtrend for almost a year and finally looks like it could be breaking it.

Qora. Big news by end of December I hear.