Read on Twitter
A market buy incentive, or bid punishment, is not the solution to the current #footballindex market. It will just increase spreads - a(nother) thread 
I understand the logic behind extending the IPD window for market buys or halving divs for bids but instead of boosting the amount of market buys it will just reduce the amount of bids whilst the market is scared to put it’s money in.
Instead of boosting the demand for market buys it reduces the incentive to bid, which in turn increases the spread which then means nobody wants to buy anyway for fear of being “stuck” with players.
We’ve seen high demand players rise in price anyway (e.g. Cavani or JRod) so a gimmick isn’t needed for these. Those not in demand have larger spreads, reducing the incentive to bid won’t all of a sudden make these attractive, it’ll make them less attractive.
So what is the solution? There are 2 IMO.
1) #footballindex let the market fall to an equilibrium level where it can sustain as it’s current market cap and accept the marketing and retention disaster.
2) Provide liquidity.
1) #footballindex let the market fall to an equilibrium level where it can sustain as it’s current market cap and accept the marketing and retention disaster.
2) Provide liquidity.
2 is the preferred option by all parties. I don’t think FI can attract market makers until NASDAQ tech is in place so they need to do this themselves with LP001. They do this by providing a bid floor (e.g. 20% below the buy price there is a massive amount of bids provided by LP1)
Adam Cole himself told us how attractive the yields are, this gives FI a great opportunity to reduce the liability on these yields - although not on paper given LP001 is a different subsidiary of FI themselves. It also gives the market a welcome boost and confidence
/end
/end
/secondary thought!
If no liquidity is to be provided, Traders need to think of this less as a trading platform and more as a (very) long term bet. Gambling on players divs outperforming their price +recyling commission - which is potentially how players should be valued anyway!
If no liquidity is to be provided, Traders need to think of this less as a trading platform and more as a (very) long term bet. Gambling on players divs outperforming their price +recyling commission - which is potentially how players should be valued anyway!
