What explains the price of FLR and the bullishness of FLR/XRP?

[Seoulite]

I've mentioned this a few places on the forum but it's still going on and I just can't wrap my head around it. Here are the Bitrue charts:

Two big things I don't get: 1) if the value of FLR is being tied to XRP for some reason, why would FLR be valued higher than XRP? 2) Why are people jumping in to buy FLR way above the previous high on USDT??? It makes no sense to me at all. For the longest time it was under 30 cents, and now suddenly people are jumping in to buy it at 60 cents? What changed???

This could all just be manipulation, and I thought that when we saw the down wick that it would stay down there, but it immediately bounced right back up. I would understand a pump immediately before the network goes live, but we are still months out. Surely they don't plan to keep it in this range for a few months in the hope of dumping it on people??? Instead, it looks like the chart is trading in a new range, especially the FLR/XRP chart. 

I saw recently that the transactions traffic on the Coston testate recently increased. Is the something going on behind the scenes that has not yet been announced? 

I don't go for hopium or unjustified hype. I know the volume on these pairs is tiny and the supply is capped so we can see moves like this. But what I don't get it why aren't FLR holders on Bitrue rushing to sell??? If you are an XRP holder then you can sell this thing you got for free for 1.3 XRP! Are people really that bullish on FLR? What is going on here? It makes me nervous.

[brianwalden]

I think it's crazy. I'm excited for Flare but I expect it to debut at a few cents, if not less than a cent. I'm guessing this is the result of Bitrue being the only place to trade.

But if you think about it, FLR's market cap will have to be 2.5x that of all issued F-assets. If the network is successful, FLR could get big.

Edited February 25, 2021 by brianwalden

[JASCoder]

Hi friend @Seoulite - here is my thinking on a possible explanation...

The details on the post-FN launch of the DFLR airdrop are being assimilated by the pool of potential speculators. 

For example, we've just learned Bitrue will be supporting a market for DFLR, and claim their customer's portion for them (maybe they'll even provide some as an IOU after the snapshot).

If I'm right, this means the premium you cite above is the current expected value of the future minted DFLR.

LMK if I'm not making sense, I'll try to explain better.
Cheers m8  

[Seoulite]

26 minutes ago, brianwalden said:

I think it's crazy. I'm excited for Flare but I expect it to debut at a few cents, if not less than a cent. I'm guessing this is the result of Bitrue being the only place to trade.

But if you think about it, FLR's market cap will have to be 2.5x that of an issues F-assets. If the network is successful, FLR could get big.

You are an experienced person who actually knows about FLR. If you think this thing is going to debut 60x lower than it is now, imagine how bearish the average holder is? That's why I am astounded that people aren't rushing to sell as fast as possible.

Edited February 24, 2021 by Seoulite

[Seoulite]

19 minutes ago, JASCoder said:

For example, we've just learned Bitrue will be supporting a market for DFLR, and claim their customer's portion for them (maybe they'll even provide some as an IOU after the snapshot).

If I'm right, this means the premium you cite above is the current expected value of the future minted DFLR.

LMK if I'm not making sense, I'll try to explain better.

So you think people are factoring in the potential value of DFLR on top of the potential value of the FLR? Interesting thought, but does that add up to 60 cents right now? And I still think it's way too early for this kind of FOMO.

I don't know. I'm still expecting it to crash back down to previous levels very soon, but I'm just so surprised it hasn't done it yet. 

[brianwalden]

20 minutes ago, Seoulite said:

You are an experienced person who actually knows about FLR. If you think this thing is going to debut 60x lower than it is now, imagine how bearish the average holder is? That's why I am astounded that people aren't rushing to sell as fast as possible.

Experienced people who know things don't drive the price of made up internet money. Crypto fanbois do.

I think FLR could be very valuable one day. But are airdropped coins ever valuable on day one?

[Guest]

FLR price doesn’t have to necessarily follow XRP or any other wrappable token (LTC, DOGE). But what it does do is enable a feedback loop - presumably the most with XRP given the amount of FLR airdrop linked to XRP.

I suspect FLR is going to bring a significant amount of additional liquidity to XRP and that they both will act as a counterbalance to significant volatility, feeding off each other through highs and lows. It may not happen on day 1 but if Flare is even reasonably successful and once the lawsuit is cleared up, I think we will see that.