hyp3rorbitMember
Posts: 79 · Reputation: 247
#1Jun 21, 2017, 08:14 PM
So, funny thing is, by the time I hit the post button, the announcement had already disappeared. But hey, what I wanted to say still matters for a lot of similar announcements, so here it is.
How helpful is it to know that the team raised 43.5 million bucks if we don’t know what percentage is going to be used to set a price floor for buying back their tokens?
If we knew how many millions would be set as a price floor, we could just divide that by the total supply of one billion to figure out the minimum buyback price. That would give us a baseline to guess how high the tokens might actually go from that floor.
It’d also be great to understand what portion of the sale proceeds will be funneled back into buy offers. And are they planning to increase the floor price with those funds, or just pile on higher buy offers? If they’ve got a solid floor already buying back all outstanding tokens, then they’ll need to shuffle some funds from the floor into those new offers. Otherwise, they’re just gonna try to buy more than they’ve already got.
-MarkM-
EDIT: Thinking about this brings up an interesting point. Are you investing in the token itself or the actual project? If it's the project, you might want to buy common or preferred stock instead.