So many of you may be asking yourselves what the holy hell is going on with these prices. It’s been speculated for some time that it was due to lack of new investors or exposure after the BCT thread locking. Now with all of the features of Neos, the team behind it constantly developing, and the people in the Neos community buying and buying Neos every day - what the hell could create such a drop - no - a bluntly-put downward spiral in the market price? People have been talking for some time and voicing their thoughts as to why - however AJ pointed out a suspicion over 2 weeks ago roughly. The multipools.
Now, that’s insane to think that a multipool could do such damage isn’t it? On a typical basis, yes, however what we’re dealing with here isn’t typical. The profitability on coinwarz in particular is off - way off - horribly off. It’s not calculating the profitability correctly based on all three algorithms when it lists SHA as 600%+ more profitable than Bitcoin. So what happens here is, the multipool scripts which based which coin to mine off of these numbers, sends for example 200TH of SHA mining at Neos thinking just for argument’s sake the return will be 0.15 BTC. In reality, the return is more along the lines of 0.05 BTC. However, the multipool is just running auto-exchange scripts which will just dump the Neos mined down until the last one is sold and even if that leaves the market value at 0.00008000. The script doesn’t have a mind of its own beyond knowing that it has let’s say 10k Neos to sell and the rate is of no consequence. It dumps Neos, pays out its miners and calls it done.
Now, the domino affect here is pretty huge. New potential supporters of Neos, investors, and existing supporters even might get the wrong impression in seeing nothing but a consistent drop in price. This psychologically at least, will have the follow affects on people typically:
- Scare them away from supporting, logically
- Cause them to think the proverbial ship is sinking, so they might as well salvage what they can and sell out before it’s too late
- Spreads a bad reputation about value/worth/market performance
So early on and even as of late in some cases, people felt that exposure on certain forums or lack thereof was the cause for lack of buy support or interest. However, I can tell wholeheartedly this is not the case and what’s been detailed here is 99.9% the cause. We the team ourselves, are constantly tossing around ideas for marketing and exposure, contests, games, you name it. However, the conclusion is that until this incorrect profitability reporting is taken care of - it will all prove pointless.
The steps we’ve taken here at Neos as well as some community supporters is reaching out to Coinwarz in hopes that they can correct this error so that mining won’t be completely obliterated wrongly and coins dumped due to that factor. I’ve tweeted to them on twitter and sent them an e-mail. We’re hoping to hear back from them ASAP to get this resolved but in the meantime as always we’re here coding and supporting what we code. If anyone has any questions, please feel free to ask or come join us on irc.freenode.net #neoscoin for discussion. Now that we’ve found the cause for decline on the market, we’re looking forward to normalization again and some really great ideas coming to fruition for Neos in the very near future.