I’ve been seeing 300+ BTC orders on BTC-e these last few days, and finally the order at .36 mBTC hit and was literally vaporized. Price proceeded to tank another 10% before lo-behold another 300+ BTC order came at .32 mBTC. I believe orders such as these are mainly an attempt to stabilize the price from a person who is more heavily invested in FTC (I myself holding FTC in the 7 figure mark or at least used to).
If you notice the order book, the ratio of bids to asks is 1:8 which is insane. Usually most order books stay within +/-1 of each other.
There are 540 BTC worth of buy orders on BTC-e to drive the price down to 1/100,000 of a BTC and over 1,000 BTC worth of sell orders to drive the price up over .00070 again. Do you know what that means? It means that there is no price support at the current level besides the one artificial order for over 300 BTC that we are currently seeing.
This says several things about the feathercoin economy:
1. Feathercoins are being mined faster than people are buying, devaluing the existing feathercoins too quickly. People that realize this are trying to immediately sell their feathercoins before they lose anymore money in the hopes of switching to a different currency, or buy back in at a cheaper price effectively increasing their coins. This causes a vicious price crash.
2. Feathercoin model needs to be changed, or the coin will fail. We are mining too quickly and essentially inflation is destroying the feathercoin economy. The reward size is looking to halve by ~160 million coins, however we are barely ~30 million, meaning one of several things will happen: 1. Feathercoin will become completely worthless due to the lack of people trying to mine it due to its inflation 2. 51% attacks will occur due to a lack of security on the network for the previously mentioned reason.
I think something needs to be done such as reducing the size of the feathercoins by half. So the cutoff point is at ~80 million and not ~160 million. If you do not give early adopters an incentive to stay vested in FTC and miners incentive to stay with the network if the coins they are mining keep bleeding away value slowly due to both a lack of demand and insanely high supply, then guess what? BTC-e does not have enough decimal places to reflect how low the price will go in the near future.
That is my 2-cents. I’ve left FTC after losing far too much money and apparent lack of care/ignorance from the development team saying that the price is being ‘manipulated downward’ and FTC is worth more than what the free market is saying it is worth.
For those of you still holding, I wish you all the best of luck…