Danica Swanson on Warpcast

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https://warpcast.com/~/channel/airstack

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Danica Swanson pfp

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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Danica Swanson pfp

If you missed day 23 and earlier of this 30-day experiment, you can catch up starting here: https://warpcast.com/danicaswanson/0x5fde5ca5

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Danica Swanson pfp

Thanks to @bluecockatoo for thoughtful comments in a Fan Token auction thread that got me thinking about this today. https://warpcast.com/bluecockatoo/0x7442f19b

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Note: It isn't my intention with today's journal entry to encourage anyone to sell, nor to do anything in particular with their Fan Tokens. It's completely up to them. Anyone who knows me well knows I'm in this for the long term. I'm treating this journal kind of like a university class; the idea is for me to think through the processes in public and learn in ways that enable me (and others too, ideally) to make informed decisions.

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TaylorWebb.eth pfp

@taylorwebb.eth

Yep, sellers would end up with a loss if the FT isn't worth 5% or more than what they bought it for. IMO, this fee is a positive overall for the ecosystem as it discourages short term speculative behavior. Traders looking to speculate on FTs on short time horizons are going to have a really tough time. I think this is a great thing as the whole crypto space needs to become more long term focused. I think I also remember hearing that the Moxie team was planning on making the 5% fee adjustable by the FT subject, but don't see anything on the docs about this. Anyone know if I'm remembering that correctly? cc @tokenstaker.eth

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Blue Cockatoo pfp

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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TAYM1011 🐿 pfp

I sold A few today but I bought other moxies again Ⓜ️Ⓜ️Ⓜ️Ⓜ️

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TrishD pfp

I've only been thinking of hodling long-term. I guess I should buy more than one token of each account I buy so I can keep one and sell one later on when the time is right. I'm not a good trader. I'm stuck in my hodling ways.

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bradq pfp

This has been very unclear to me. Feels like it's not clear to many and nobody is really thinking about the dynamics at this point. It's not even clear to me if you can always sell a FT on the spot for the current price. Is that always true? If FT are unlimited how does selling affect supply and demand and price?...complete mystery to me. I have never seen a clear explanation of the how the buying and selling works long term. Obviously bullet pts but it's not clear to me which keeps me at a distance. I don't like to invest much in things I can't explain. 🫡

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ArtStudio48 pfp

I’ve sold some FTs as I was trying to gain funds to buy more expensive ones. One thing that happens is those high fees - didn’t keep track, but my take was significantly less than the value of the FT at the time. So would we very careful in the future. Also noticed that sold FTs are actually burned - so they are removed from circulation, and lower the total amount of FTs available; at least until someone buys again.

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@thecurioushermit

I've sold a few times. After the first month, I sold some tokens that I'd bought early and weren't aligned with my evolving strategy. I used the Moxie to buy others. Also sold a handful of Network tokens last week to get over some slow cashflow. I did make profit on them, but I'd been holding them for a few weeks - it's not something you can buy and then turn around a day or two later and expect to profit at all - the fees will eat up any profit you might have made in that short of time. And it's definitely going to be better to hold. ESPECIALLY as we're seeing the price of Moxie start to rise again.

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TrishD pfp

I'm supporting you through /microsub! 54 $DEGEN (Please mute the keyword "ms!t" if you prefer not to see these casts.)

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TrishD pfp

I'm supporting you through /microsub! 54 $DEGEN (Please mute the keyword "ms!t" if you prefer not to see these casts.)

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