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Offline emski

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Riddle
« on: September 13, 2014, 03:55:18 PM »

What happens when someone buys $1000000 worth of btsx.
Then buys $500000 bitUSD.
Then sells $500000 worth of BTSX.
Then sells all bitUSD for BTSX.
All within a few hours?

Online aloha

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Re: Riddle
« Reply #1 on: September 13, 2014, 04:12:56 PM »
What happens is we have very liquid market  :)

Offline xeroc

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Re: Riddle
« Reply #2 on: September 13, 2014, 04:15:25 PM »
Can you buy/sell that many without beaking through the buy/sell walls and thus paying more / selling for less .. then the peg?
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Offline emski

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Re: Riddle
« Reply #3 on: September 13, 2014, 04:22:06 PM »
Can you buy/sell that many without beaking through the buy/sell walls and thus paying more / selling for less .. then the peg?

I might have used an additional zero... the point is that the market is shallow and perhaps a little bit easy to manipulate.

Offline xeroc

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Re: Riddle
« Reply #4 on: September 13, 2014, 04:24:33 PM »
You are refering to the bitUSD peg?
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Offline emski

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Re: Riddle
« Reply #5 on: September 13, 2014, 04:30:07 PM »
You are refering to the bitUSD peg?

Peg is fine. BTSX is volatile which might enable someone to attempt price manipulation. However this is free market...

Offline tonyk

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Re: Riddle
« Reply #6 on: September 13, 2014, 04:30:57 PM »
This is a good place to say that is why I think that:

Every DAC with its own bitUSD is an idea that do not like...

Let's a thousand vey thin markets blossom!
Lack of arbitrage is the problem, isn't it. And this 'should' solves it.

Offline fluxer555

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Re: Riddle
« Reply #7 on: September 13, 2014, 06:10:49 PM »
This is a serious attack vector, which I think warrants a response from BM
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Offline tonyk

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Re: Riddle
« Reply #8 on: September 13, 2014, 06:17:59 PM »
This is a serious attack vector, which I think warrants a response from BM

You can try it. I am pretty sure you will lose money doing it.
Lack of arbitrage is the problem, isn't it. And this 'should' solves it.

Offline xeroc

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Re: Riddle
« Reply #9 on: September 13, 2014, 06:20:58 PM »
I don't get why this is an issue of the software .. This 'attack' will not work with reasonable market participants ... you will only get money from weak handed ..
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Offline fluxer555

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Re: Riddle
« Reply #10 on: September 13, 2014, 06:25:59 PM »
The problem lies in that if you hold X amount of USD and the same X amount of BitUSD, and the peg is working 'perfectly', it is possible that the amount of BTSX you could sell the BitUSD for does not equal the number of BTSX you could buy with USD, due to asymmetrical order depths. One could think of this as 'arbitrage' or a 'market manipulation attack', depending on your opinion...
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Offline tonyk

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Re: Riddle
« Reply #11 on: September 13, 2014, 06:32:03 PM »
The problem lies in that if you hold X amount of USD and the same X amount of BitUSD, and the peg is working 'perfectly', it is possible that the amount of BTSX you could sell the BitUSD for does not equal the number of BTSX you could buy with USD, due to asymmetrical order depths. One could think of this as 'arbitrage' or a 'market manipulation attack', depending on your opinion...

Call it 'arbitrage' or a 'market manipulation attack', but tell me how this makes YOU money, (better yet go make them in practice). Both should result in this...
Lack of arbitrage is the problem, isn't it. And this 'should' solves it.

Offline Gentso1

Re: Riddle
« Reply #12 on: September 13, 2014, 11:03:47 PM »
I don't think it is so much a problem from the software as it is from a thin market. With a market as young as the ones we are using here you have to, in all seriousness expect that it will not have a ton of depth. But with good working software, users will bring money and money will bring depth. We just need some time to let user's feel comfortable with the security and a few more bells and whistles.......

It reminded me of the song below

Time is on my side, yes it is
Time is on my side, yes it is
Now you always say
That you want to be free
But you'll come running back (said you would baby)
You'll come running back (I said so many times before)
You'll come running back to me
Oh, time is on my side, yes it is
Time is on my side, yes it is
You're searching for good times
But just wait and see
 

 

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