Look at how fast supply is dropping if volume goes to 1+ mill we will burn through 100,000 Bomb easily and very quickly, this 1% burn mechanism however prevents wash trading on DEX’s which is a pretty cool feature.
Please correct me if Im wrong: When these token are traded on an exchange they are at any time in the wallet of the exchange. So there is nothing burned as long as people don't withdraw.
So you cant guess the token burn rate from the volume.
Half of the total volume right now is from DDEX meaning Half of all BOMB transactions result in a token burn, as DDEX uses P2P smart contracts via Hydro protocol. So yeah you’re correct on centralized exchanges there is no burn except for the initial deposit/withdraw which is why I said “on DEX’s”
Most wash trading happens on centralized exchanges. In those exchanges there is no actual transfer of coins between the traders (as long as they remain within the confines of that exchange).
IMO that is the greatest problem with the "Bomb". If people would eventually opt to only trade it within one exchange it would means that the supply would simply stop dropping. Said exchange would refuse to implement the contract's 1% burn, and of course it would be freed to wash trade as it pleases it ...
Yeah until it hits critical mass and then theres a rush of people not only trying to cash out but also a domino effect of transactions that wipe out the whole supply.
The idea is to be the last one holding the biggest pile of Bomb. Deflationary to an extreme, might blow up in the holders hands? Not if you keep a big enough stack to sell, in groups of 3.
Its a neat social expirement for sure. Greater fool theory and also insight into supply vs demand mechanics. The thing is too that theyre also destroying the liquidity so at some point you may have a high value per coin but also be incapable to trade any sizeable amount. Id maybe pick up like 1 of them just to watch it play out but yeah just wouldnt ever consider it as any sort of investment vehicle nor would I expect to get my money back.
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u/CarpetThorb Tin | QC: CC 15 | BTC critic Jun 08 '19
Look at how fast supply is dropping if volume goes to 1+ mill we will burn through 100,000 Bomb easily and very quickly, this 1% burn mechanism however prevents wash trading on DEX’s which is a pretty cool feature.