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Danica Swanson
@danicaswanson
Moxiesplaining Journal Day 24: Selling Fan Tokens What happens when people sell Fan Tokens? I haven’t sold any yet, and don’t plan to for quite awhile. I plan to lock when Moxie Power launches. But selling is the only way to realize gains, so I imagine most people will sell some of their holdings sooner or later. When that time comes, what factors affect the outcome? A few that come to mind: - every token sold slightly reduces the price for the next buyer/seller - 5% fee (2.5% burned; 2.5% to the Fan Token entity) - taxation (e.g., cost basis and capital gains tax on profits) - slippage (how to estimate?) In some cases it looks like sellers end up with a loss when they were (presumably) hoping to profit. Even after reviewing the docs I still feel unclear on what people end up with when they sell, so I'm hoping to learn in public. Thoughts...? (NFA, of course). (Moxiesplaining Journal is a daily window into my observations, learnings, and the view of Moxie from where I sit as a writer + editor).
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Blue Cockatoo
@bluecockatoo
I do think this is set up to reward long term holding of FTs and discourage flipping, and that's an interesting dynamic. Since Moxie is the only thing that you can use to buy FTs, it also encourages long term holding of Moxie! And that will make the price of Moxie go up as well since people are locking it in FTs rather than selling for other crypto. It's well designed in that regard. For Fan Tokens in particular, my portfolio has informed me that buying tokens for entities that are not as "popular" will have more loyal fans and are better buys because as long as people are holding and the entity is earning Moxie for their buy-and-burn every day, the token price will go up. More popular FT entities have less "sticky" fans and so more trading for profits once they get to something better than the fees. Their overall growth is much slower. Surprised I haven't yet seen someone with a high FarScore "farming" small accounts they own FTs for by engaging with them a lot to raise the price of their investments.
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Danica Swanson
@danicaswanson
That's a good point about how the design of the system also encourages long-term holding of the Moxie token. Another reason to be long-term bullish. So far, all the Fan Tokens I own have been purchased because they're for entities I'd align myself with anyway, even if Moxie weren't in the picture at all. I haven't really evaluated them *as investments* based on their popularity (or lack thereof). But you're making some interesting points there. Some of the best investments long-term may turn out to be the ones that are flying largely under the radar today. I imagine there *are* some high-Far Score people who are "farming" smaller accounts by increasing their engagement with those accounts the way you describe, but without making it too overt.
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