Sleeping with the fishers

But now I keep buying em at huge discounts.
Just wondering - why people dump ??? - @onealfa
_source

This was a comment about the mass dump of PALcoin as soon as the raindrop was made available. I had actually bought 30 PAL a few hours earlier and paid 30 STEEM for them as I wanted to see what the staking would do. I picked up something like 2000 in the raindrop. lol. I'll survive.

But, the dump is the expected behavior of most people because essentially, it is free money and there is a lot of risk in holding. Some will of course buy back in cheaper but I predict that will be a minority as most will take their money and cut. As I have mentioned several times recently and many times over the past, easy coins to get are easy coins to sell.

The same thing happened on Steem in the early days as many got their Steem easily and, there was little point in staking it up unless in very large volumes as the n^2 curve meant it didn't translate to much of a vote or curation, so selling was more logical. People were dumping Steem at 7 cents too remember.

But later, people are also jealous of those who picked up Steem at 7 cents and wish they had the chance, the funds or the knowledge that they should have. This cycle will continue to repeat though for most as even when the chance is available, the risk is too high to chance it. There are people who are dumping significant amounts at the very start of the project and if they had the opportunity to do it on Steem in 2016, they would have taken it too.

This is the thing with investors on Steem - most aren't. Most are happy to take their "free coins" and dump them for whatever they can get for them because they don't want to take the risk that what they have could be worthless in the future and regret not selling. Best to eat the one marshmallow now.

Now, some people will claim they need the money and those that are able to hold can do because they don't need the money. This is fair. Except, until a couple of days ago, those coins were not calculated into the budget at all. They were unavailable. This is much like the revenue stream of Steem where most people who claim they need it to live off, didn't know about it until relatively recently and managed without it.

But, this is the way it goes.

What might have be an interesting approach for a staked airdrop is to drop it staked up immediately and have the powerdown period of that portion locked for a period of time so that people are essentially forced to use it to maximize their value. These are free coins gifted after all.

Human nature and entitlement kicks in of course and people will say, that is not fair, that is not freedom. Freedom is about responsibility however and as we can see from the dump of coins, most people fail the marshmallow test. The same thing happened with @Steemhunt HUNT coins too as people sold as fast as they could. At some point though, the sellers run out of "free coins" to sell and the buyers who have been buying them cheaply have them staked and earning more for them and then - it isn't fair again.

Now I have no idea whether PAL will be worth something in three years from now but at what point are people willing to take some of this opportunity being handed to them and take a risk and stake up? I am guessing that for many, they will likely never do this and will keep chasing every new platform and airdrop so they can keep dumping. Eventually though, there is no opportunity left to chase as the industry stabilizes and the main players have created their platforms that people like and enjoy and, many will lament an opportunity missed.

While we don't all have the same experiences and conditions, we all have the opportunity to make decisions on how we use the resources we have available and, an airdrop are resources. The decision many made was, to take a dump.

Freedom.

Taraz
[ a PAL original ]