Stellar started with the intention of giving away circa $10 I believe but it dropped to <$0.5 in a matter of days
I don't know if that's part of the initial startegy, but that's a big drop, giving away 7000 to giving away 125. ( A 98% drop!) So I think if that's right in $ terms they're down to giving away $0.5
Yea I am reading through their thread now. Starting with 6900 stellar was huge and created a great buzz but they would have crashed the market if they didn't scale back when people started dumping
Shortly after I believe they switched to a new discretionary invite system based on 'geographic/demographic criteria' that made it very hard to track where the STR was going. If it was being released at all
Stellar's CAP is holding up well but their price and more importantly their 24 hour $ traded volume is constantly falling. This is inconsistent with having nearly double the amount of stellar in circulation as last week imo.
I think the crushed sharedrop plus the combination of an invite system that is applied by some discretionary geographic/demographic criteria makes it very hard for you to track where all the new Stellar is going.
So my conclusion at the time was like all other sharedrops they started haemorrhaging money and had to drastically reduce it to less than $1 and ultimately may have even resorted to having their advertised share supply increase, so that their CAP could rise but without actually giving those STR away.
The strategy can work if you have funds set aside like PayPal but if you try to fund a specified $ amount with immediately tradeable shares in a speculative start up, then 99% of the time it results in a very large loss.
We also followed NXTTY on this forum as a case study as they attempted to give 2500 NXTTY or $7 each at the start to new users.
You are right. Traditional companies have over DACs that they can intentionally take a hard short term hit. DACs on the other hand will lose investors the moment hard times begin. Share issuance divides the cost among every stakeholder now, but there is not yet any agreed upon method to divide cost among DAC stakeholders across time. Losing 7/8ths of their value NXTTY may be unable to recover at this point.
Never say never, but it looks gloomy for NXTTY.