Market Making for Buildteam Token
There is only a very limited number of interesting native tokens on bitshares and I found buildteam token to be one of them. The team behind the buildteam token actively develops new products and services, so far so good. Thus I have decided to try market making for BUILDTEAM/BTS market. I have bought some tokens over the past several weeks helping to stop the price downfall.
As clearly visible on the chart, low liquidity is causing a very high spread of 50% or more between buy and sell orders. This is far of being ideal for causal buyers and sellers. It's relatively easy to support liquidity and narrow spread more than ten folds to 5% or even 1%, although it requires certain funds to lock in the market.
There are however a few problems to do so.
- 5% additional supply each month puts strong sell pressure on the market
- I couldn't find any monthly reports on project revenue distributed to stakers and how it changes over time
- the new steem-engine market has caused further fragmentation to buildteam market
- there was no buy-out of any tokens in the middle of July, at least not on bitshares
There are several concerns and now I wonder whether to stay and try to provide liquidity to this market or sell tokens I own at any price and quit the market? I have positive impressions about Buildteam project, but this doesn't fully translate to buildteam token.
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