The following charts represent abstractly the effect of buys on the simple moving average of Optitoken’s price.
The first one shows something that some many consider a given. However, we want to illustrate it for those that may wonder if and how we adjust buys, as well as how that is calculated. At a first glance someone see a project that executes one-size-fits-all buys and wonder, won’t the effectiveness dwindle as the project goes on? It would in that scenario indeed. However, the size of buys will scale alongside the price and daily average volume which brings us to our second graph.
This one is a rough example of how OptiToken utilizes daily average volume and price to calculate the amounts needed to affect price in the most optimal manner possible. It doesn’t give us the exact optimal amount, but it does give us the minimum amount necessary. Knowing that buying above the minimum, we tweak as we progress, is it best to inject the market with one large buy that drives price up parabolically? Or is it better to buy in waves, meaning more profits from OptiX trading operations need to be saved and accumulated? With the latter the psychological impact on those gaming the system changes. The buy low sell spike idea becomes imperfect for traders or arbitrageurs. Theoretically, we believe utilizing randomness to some extent will offer the best outcome long term for price. What we do need to know is these minimums, which is easily attainable. How and when we execute the buys is a variable based on how buy pressure tends to be best utilized after some live testing early on in Optitoken’s ecosystem, once live in exchanges.
Optitoken is the first algorithmically traded, hyperdeflationary currency, that derives its value from a carefully curated token basket. Profits from the automatic trading of the portfolio are used to regularly buy Optitoken on exchanges, creating buy pressure and volatile price action. These tokens are then destroyed, creating further value. Our ICO is open to buy the initial token basket.You can learn more about the project here at https://OptiToken.io and on Telegram https://t.me/optitoken