I honestly don't understand how HIVE can just print out 20% and expect for the value to come. It has to come from somewhere right? Most likely that value is going to get sucked OUT of HIVEs price would it not? There needs to be things in play that bring value back into Hive be it ads, fees or whatever and it clearly lacks many of those things. Maybe I'm missing something and don't get it but thats my general idea of the whole thing.
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Glad I am not the only one questioning it, I have asked many people and the overall consensus is well its within the risk profile defined by the blockchain. If there is some sort of HIVE reserve I don't know about that can cover redemptions maybe it can hold up for a while longer but if this is going to be redeem on the open market, I don't see how that doesn't tank the price of the underlying assset.
Yes exactly, where is the income, and it would need to be a combination to cover risk of one not meeting its obligations for the redemptions. it could be ads, it could be loans, it could be fee burns when using services, it could be taxes (not a fan like ETH does), it could be account creation fees, it could be market making, but that income has to come in and actually be shown that there are reserves.
I also thought I am either missing something or this is going to end badly for a lot of people, lets say worst case does come around, you're stuck for 13 weeks in HIVE and 3 days in your HBD savings, by the time you get out those who are liquid could have drained the market of all liquidity