Disclaimer: This is just one persons advice. Everyone does their own trading and makes their own decisions. It is important to get many sides of a story to be able to evaluate the situation well. Good luck with your trades!
Reading in the different Electroneum groups and seeing what people write made me realize that this post is needed. I do not know if the people posting are straight up stupid or just trying to sabotage for others by giving horrible advice. But telling anyone to buy Electroneum for other than daytrading right now is just plain insanity. I will explain why.
First of let me start by pointing out that I participated in Electroneums ICO. I own Electroneum.
Anyone that tells you to buy Electroneum right now is either one of these things:
- Incredibly naive and or not very experienced
- Insecure about how Electroneum will develop
- Very new to investing and have no idea how the market works
- Not a very nice person
Electroneums ICO was the biggest in the world so far by number of investors which is great and very bad at the same time. It is great because it reached so many people and got a lot of new people into cryptos.
At the same time it is bad because these people have no clue about how investing, the market or cryptos work. Which is why they are very easily swayed in the wrong direction by evil or clueless people.
Really? But why?
It is really simple IMO.
As of right now there are relatively few ETN available on the market, we all know this because the coins from the ICO have not yet been released.
Already the price has been driven down by the people who have been able to mine ETN and by traders.
When anything drops in value it is because of there being more sold than there is being bought. Easy right? A price is decided by supply and demand.
At the moment the supply is scarce, there are not so many ETN available because the ICO coins are locked up in the wallets that has yet to be released.
Therefore it is very easy for the demand to sometimes be bigger than the supply.
But when the coins from the ICO are released we will see BILLIONS of coins entering the market. If the price has already been driven down by just a million coins then I assume that we both understand that the price will go down once the billions of coins are released.
The supply will be so much incredibly higher than the demand that the price will DROP HARD.
Why will people sell?
To make profits of course. Imagine the rush to sell first when the ICO coins are released, the exchanges will be overrun by people trying to sell their coins first to get their profits. Of course not everyone will be selling but the majority surely will, no matter what some guys on Facebook try to tell you.
Also a lot of people do not understand that the price possibly will drop below 1 cent. The reason for this is that depending on when you bought ETN you got a bonus. The people that bought in the beginning of the ICO got a 50% BONUS this means that they can sell their ETN for around 0.66 cents, which is 0.0066 in dollars, and still break even.
The miners still can sell even lower and still profit from it. So there will be a massive rush to sell Electroneum and the supply of around 6.2 BILLION coins will overwhelm the market. The price WILL CRASH HARD. There is no denying that fact.
Anyone trying to tell you anything differently is probably not giving you the best advice, I would NOT buy ETN right now.
If YOU buy it now you will see the price plummet when the ICO coins are released and YOU will make a huge loss unless you wait a long time. Does it not make a lot more sense to wait for the crash and then buy when the price is lower?
Also a lot of people have lost their faith in the company from how they have handled the launch and people will be looking to sell to move on to other coins that they believe will bring more profit.
Listen, for me it is bad to tell you not to buy because of course I want the price to go up as high as possible so that I can sell my own ETN for a nice profit. But no matter what happens before the release the price will most likely crash when 6.2 BILLION coins are released. No doubt about it.
So if ANYONE tells you to buy ETN right now they are either not looking out for your best interest or does not understand how the market works.
Some might even try to say that “Yeah but I buy it now and hold it for a long time!” Sure that would make some sense if not only for the fact that you can buy it SO MUCH CHEAPER when the price gets dumped. It makes no sense to pay 7 cents for something that will cost less than 1 cent later. I assume you invest to make money not to lose it.
So PLEASE. Do NOT listen to anyone that tells you to buy ETN because it is most likely going to be A VERY BAD DEAL.
If you believe in Electroneum then WAIT until the ICO coins are released and then BUY A LOT when the price is low. But if you buy now all that will happen is that you will have to wait longer to see any kind of profit.
I get frightened when I read the Facebook groups with people trying to pump the coin right now. It is not nice to pump something that will have get dumped in price later on. If they tell you to buy ETN you are best of by blocking them because they have no clue about what they are doing.
None can deny the fact that the supply will OVERWHELM the demand when they are released and you will have plenty of time to buy the ETN at a WAY lower price than now.
I wrote this post for one reason and one reason only, to protect you from losing money. As I said I hold coins from the ICO and I only benefit from you buying the coin which would increase the price. But I have a conscience and if I was new to the market I would have wanted someone to tell me this.
So to anyone that tells people to buy ETN right now: Please think twice and then think again, learn how the market works and stop trying to make people lose money just because you want to make a profit.
Do not get me wrong though: I think Electroneum are about to do something great but it is just not smart to buy it right now. Remember: SUPPLY AND DEMAND.